If you go with an education IRA (or other similar), what if the kids decide not to go to college? What if they get a full scholorship? What if they slack off, knowing that they already have their college paid for? To many uncertainties. I decided to just save the money in ordinary investments (money market, mutual funds, etc). This way, I have another windfall in case of emergency, and I also full full flexibility to distribute or use the money as I see fit. Obviously, there has to be a great level of self control on the parent's part to keep from using the money foolishly. Also, the earnings are subject to taxes. So, either way, there are pluses and minuses.
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