July 21 (Bloomberg) — For CIT Group Inc., the emergence of a $3 billion loan agreement with bondholders preventing bankruptcy shows there is life after death in the credit markets.

I’ve been burning the candle at both ends lately, what with my job winding down (amazingly, it winds up before it winds down, having to train my replacements), a big vacation planned for August (while I still have money, a car, and a house — hehe), and 2 kids that are growing up way too fast…

So, like any good student (of life), when the chips are down, you missed your assignment, you’re in danger of failing an exam –

You CHEAT

Actually, this week, I’m taking a pass. We’ve been talking about how to build wealth, how to brainstorm business ideas, and how to get started.

We’ll pick up on that next time around.

This week, I want to direct you to a post that one of my fellow Personal Finance bloggers, Lazy Man, wrote, entitled, “Wealth Creation: Is it a Myth?“

He postulates that wealth creation is a zero-sum game: Any time I make a dollar, somebody loses a dollar; thus, it’s a zero-sum game.

It’s an interesting concept. His post got a lot of people talking. Make sure you read the Comments for my take on the question, where I give the “functional” reason that wealth-creation is NOT a zero-sum game (Lazy Man mentioned it briefly in his post) — but absent banks, there may in fact be no wealth creation.

Check it out. Tell me what you think in the comments here.

The highlights:

• Contribution Limits – With an ESA, you are only allowed to contribute up to $2,000 per year.  Most 529 plans do not have contribution limits, but it depends on each state.
• Usage Of Funds – 529 plans can only be used for college expenses, while ESA funds may be used for elementary or secondary education such as private school.
• Investment Options – With an ESA, you can invest in just about anything, so you have more control over your money.  A state 529 plan will give you investment options but doesn’t let you choose specifics.  Your investment options with an ESA are the same as what they would be if you were investing in an IRA.
• Tax Advantages – The tax advantages of an ESA versus a 529 plan are basically the same.  Money withdrawn from either account is tax-free as long as it is used for qualified education expenses.
• Age Restrictions – Funds within an ESA must be used by the time the beneficiary (the student) turns 30.  There are no age restrictions for 529 plans.

Read the entire post here — What’s An ESA And How Is It Different Than A 529 Plan? | Broke Piggy

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