WDRP and Education Savings Accounts

Over the weekend my wife and I adopted a little baby boy.  In this same amount of time I realized two things.  First, was just how much more my life could be fulfilled.  Second, I realized I have to start saving for college!  A few investing mantras came to mind: "Start early!", "Take advantage of the time value of money" and most important, "Buy low and sell high".  With the cost of higher education growing at an average rate of 6%, a public university education could be over $200,000.00, so I better get started.

529 Plans are a very good option because they work similar to a normal 401k, where you have a fund manager who provides possiblities to invest.  If you do not have the time to pick investments yourself they often have models to use also, which are extremely helpful.  Another similarity to the 401k is that you are locked into the investments that are in your specific 529 Plan with that manager.  This isn't a bad thing and it is great if you have a good money manager in charge of your plan.  However, using the 529 Plan option, you do not have the whole market to work with.

Education Savings Accounts (ESA's) are another great option that you can take advantage of.  I found that Scottrade has one as I am sure most trading platforms do.  Each year you are able to contribute up to $2,000 in an ESA, which will grow tax free until you need to take the money out for educational needs.  Keep in mind, there will be a penalty if you take distributions from tax free growth and do not use it for education.  So the goal of the money you invest in this plan is to use it for educational purposes. 

We know the 529 Plan has its own investment options, so lets talk about of using your ESA contribution of $2000 for this year to purchase WDRP shares.  Right now, the current WDRP price per share (pps)  is .034, you would be able to purchase a little more than 50,000 shares.  If WDRP went up to .10, which I think is very possible, your money would then be $5,000.  If in the next few months WDRP announces that they have a Microwave Tankless Water Heater (MTWH) to sell and we start seeing production, this could go to .50 pps very quickly.  That would be $25,000.  If in the next year or two WDRP is selling the water heater internationally and also coming out with any other products and uses for this technology, then this could be 1 to 2 dollars.  That would be taking your $2,000 investment and turning it into 50 to 100 thousand dollars.

Another great feature of both the ESA and the 529 Plan is that if all of the money is not used for the education of the child designated, it can be transferred to another child or even for an adult for furthering their education later in life.

It is never too late to start saving for education.  Good luck!


Because of the possibilities of share price growth, I believe you could save a lot of money towards your childs education with this idea.  I am not your financial advisor, and this general discussion is not meant to be investment advice.  Use this information to talk with a professional advisor who knows your financial situation and can give you specific advice based on that.