It appears that by saving in a Coverdell ESA you would accumulate $80,893 ($71,016 after tax) vs. $67,181 in a taxable savings account. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. Coverdell ESA' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='0' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='3' /><category label='' /><category label='5' /><category label='' /><category label='7' /><category label='' /><category label='9' /><category label='' /><category label='11' /><category label='' /><category label='13' /><category label='' /><category label='15' /><category label='' /><category label='17' /><category label='' /></categories><dataset seriesName='Taxable Account' color='0B9191'><set value='2125.0' /><set value='4382.0' /><set value='6780.0' /><set value='9328.0' /><set value='12035.0' /><set value='14911.0' /><set value='17966.0' /><set value='21212.0' /><set value='24661.0' /><set value='28324.0' /><set value='32216.0' /><set value='36352.0' /><set value='40745.0' /><set value='45412.0' /><set value='50370.0' /><set value='55638.0' /><set value='61235.0' /><set value='67181.0' /></dataset><dataset seriesName='Coverdell ESA' color='F58127'><set value='2160.0' /><set value='4493.0' /><set value='7012.0' /><set value='9733.0' /><set value='12672.0' /><set value='15846.0' /><set value='19273.0' /><set value='22975.0' /><set value='26973.0' /><set value='31291.0' /><set value='35954.0' /><set value='40991.0' /><set value='46430.0' /><set value='52304.0' /><set value='58649.0' /><set value='65500.0' /><set value='72900.0' /><set value='80893.0' /></dataset><dataset seriesName='After-Tax Coverdell' color='d8d8d8'><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='0.0' /><set value='71016.0' /></dataset></chart>"); // --> </script> <ul><li><a href="saving-for-college">How much should I be saving for college?</a></li><li><a href="student-loan-repayment">Will I be able to pay back my student loans?</a></li><li><a href="coverdell-esa">What are the advantages of a Coverdell ESA?</a></li><li><a href="529-college-savings-plan">What are the advantages of a 529 college savings plan?</a></li><li><a href="value-of-college-education">What is the value of a college education?</a></li><li><a href="parent-plus-loan">What are the payments on a parental (PLUS) loan?</a></li><li><a href="living-on-or-off-campus">Should I live at home, on campus, or off campus?</a></li><li><a href="when-to-start-saving-for-college">When should I begin saving for my child's college?</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th colspan='6' class='section'>Taxable Account</th><th colspan='3' class='section'>Coverdell ESA</th></tr><tr><th scope="col">Year</th><th scope="col">Savings Amount</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 8.00%</th><th scope="col">Taxes @ 22.00%</th><th scope="col">Ending Balance</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 8.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$2,000</td><td>$2,000</td><td>$160</td><td>$35</td><td>$2,125</td><td>$2,000</td><td>$160</td><td>$2,160</td></tr><tr><td role="rowheader" scope="row">2</td><td>2,000</td><td>4,125</td><td>330</td><td>73</td><td>4,382</td><td>4,160</td><td>333</td><td>4,493</td></tr><tr><td role="rowheader" scope="row">3</td><td>2,000</td><td>6,382</td><td>511</td><td>112</td><td>6,780</td><td>6,493</td><td>519</td><td>7,012</td></tr><tr><td role="rowheader" scope="row">4</td><td>2,000</td><td>8,780</td><td>702</td><td>155</td><td>9,328</td><td>9,012</td><td>721</td><td>9,733</td></tr><tr><td role="rowheader" scope="row">5</td><td>2,000</td><td>11,328</td><td>906</td><td>199</td><td>12,035</td><td>11,733</td><td>939</td><td>12,672</td></tr><tr><td role="rowheader" scope="row">6</td><td>2,000</td><td>14,035</td><td>1,123</td><td>247</td><td>14,911</td><td>14,672</td><td>1,174</td><td>15,846</td></tr><tr><td role="rowheader" scope="row">7</td><td>2,000</td><td>16,911</td><td>1,353</td><td>298</td><td>17,966</td><td>17,846</td><td>1,428</td><td>19,273</td></tr><tr><td role="rowheader" scope="row">8</td><td>2,000</td><td>19,966</td><td>1,597</td><td>351</td><td>21,212</td><td>21,273</td><td>1,702</td><td>22,975</td></tr><tr><td role="rowheader" scope="row">9</td><td>2,000</td><td>23,212</td><td>1,857</td><td>409</td><td>24,661</td><td>24,975</td><td>1,998</td><td>26,973</td></tr><tr><td role="rowheader" scope="row">10</td><td>2,000</td><td>26,661</td><td>2,133</td><td>469</td><td>28,324</td><td>28,973</td><td>2,318</td><td>31,291</td></tr><tr><td role="rowheader" scope="row">11</td><td>2,000</td><td>30,324</td><td>2,426</td><td>534</td><td>32,216</td><td>33,291</td><td>2,663</td><td>35,954</td></tr><tr><td role="rowheader" scope="row">12</td><td>2,000</td><td>34,216</td><td>2,737</td><td>602</td><td>36,352</td><td>37,954</td><td>3,036</td><td>40,991</td></tr><tr><td role="rowheader" scope="row">13</td><td>2,000</td><td>38,352</td><td>3,068</td><td>675</td><td>40,745</td><td>42,991</td><td>3,439</td><td>46,430</td></tr><tr><td role="rowheader" scope="row">14</td><td>2,000</td><td>42,745</td><td>3,420</td><td>752</td><td>45,412</td><td>48,430</td><td>3,874</td><td>52,304</td></tr><tr><td role="rowheader" scope="row">15</td><td>2,000</td><td>47,412</td><td>3,793</td><td>834</td><td>50,370</td><td>54,304</td><td>4,344</td><td>58,649</td></tr><tr><td role="rowheader" scope="row">16</td><td>2,000</td><td>52,370</td><td>4,190</td><td>922</td><td>55,638</td><td>60,649</td><td>4,852</td><td>65,500</td></tr><tr><td role="rowheader" scope="row">17</td><td>2,000</td><td>57,638</td><td>4,611</td><td>1,014</td><td>61,235</td><td>67,500</td><td>5,400</td><td>72,900</td></tr><tr><td role="rowheader" scope="row">18</td><td>2,000</td><td>63,235</td><td>5,059</td><td>1,113</td><td>67,181</td><td>74,900</td><td>5,992</td><td>80,893</td></tr></table><span style="padding-bottom:2px;background-color:#eee;line-height:1.45em;border-bottom:1px dotted;border-top:1px dotted;"><span style="color:#81A41E;font-size:100%;font-weight:700;">&nbsp;FINANCIAL PLANNERS</span> <span style="color:#000;font-size:100%;font-weight:normal;">&ndash; 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