However, I also understand that in the stock market there are no guarantees! It is for this reason and this reason alone, that diversity is a necessity. If I knew for certain that CMA would continue its program of raising their dividend every year, and that the next 14 years would provide better than 15 percent return on my money, I would only own CMA stock. It is because of this ‘risk of no guarantees' in the stock market that the rewards for investing in the stock market are much higher than a passbook savings account, CD's or Bonds.
In the world of investments, treading into the unknown can be a very hazardous journey. While the majority of investors opt for companies traded on the large stock exchanges such as the New York Stock Exchange, NASDAQ and AMEX, there are thousands, if not millions of people who choose to roll the dice with companies traded on the OTC Bulletin Board, or even more risky, the Pink Sheets.
Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18.
Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year.