Children & Investing
You don’t have to be rich to save for college.
(Originally published in the 4th Quarter 2001 Shareholder Report)
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It’s time to take action and make the most of what the Coverdell Education Savings
Account (“ESA”) (formerly known as the Education IRA) has to offer.
Each day more people recognize the importance of a college education for future career
and financial success. Unfortunately, the costs associated with obtaining a college degree
are rising at a substantial rate. The College Board* states that for 2000-2001 the average
cost of four years at a public institution is up 7.7% from last year and the same cost at a
private institution has increased by 5.5%. Reviewing these statistics may leave you feeling
overwhelmed by the potential financial burden of your child’s future college degree.
A popular myth is that you have to be wealthy in order to save and invest for higher education
costs. Fortunately that doesn’t have to be the case.
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Did you know that according to U.S. Census Bureau statistics, people with a bachelor’s
degree earn over 80 percent* more on average than those with only a high school diploma?
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No matter your financial situation, the opportunity to save for your child’s, grandchild’s
or relative’s college expenses is available. The ESA provides a convenient and cost effective
way to save for college expenses. Whether your plan is to save as much as you can
or put away enough to pay for part of the college costs, the ESA can help.
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With tax law changes effective January 1, 2002, the contribution limit for the ESA has
increased from $500 to its current $2,000 level.
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The ESA also provides great tax benefits that allow account earnings to accumulate tax-free
and withdrawals to be free of income tax if the proceeds are used for qualified edu-cation
expenses. U.S. Global Investors requires no minimum initial investment to estab-lish
an ESA, making it affordable to get started regardless of your income level. If you
need help projecting the potential cost to attend college or estimating the future value of
your investment, try the U.S. Global Investors College Savings Planner available on our
web site at www.usfunds.com.
For more information about your options, or to establish a U.S. Global Investors
Education Savings Account, visit our web site at www.usfunds.com or call 1-800-US-FUNDS
(1-800-873-8637) to speak with an investor representative. U.S. Global
Investors wants to help you achieve your college savings goals.
* Source: www.collegeboard.com
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Investment Professionals 
