Fannie Mae Preferred S (FNMAS)

[CatBirdSeat]

I've been doing just that this month in a Coverdell ESA account I just opened up for my 5 year old daughter. I've already had a 529 setup and have been contributing to the 529, but the problem with 529 plans is you are limited to a plan's set of mutual funds and bonds.

The Coverdell ESA is a good idea for an investment like GSE preferred; more potential bang for the buck. You can still contribute up to $2000 for 2012 until April 15th, then I think the max contribution lowers to $500 for 2013. So now is the time to do it if you haven't already.

I sure wish I was thinking about this in September... So far, I have socked away a few shares of FMCCT and FMCCH, will buy some more of a good cheap $50 preferred soon.