Compare College Investing Options
Monday, August 21st, 2006
As college costs continue to rice, finding ways to invest for college can be hard work. In a recent article titled How To Compare Your Investment Options For College we explore college investment options and what you can do to prepare now.
When most parents think of investing for the educational future of their children, they fail to follow the 80/20 principle. They do what 80% of the population is doing instead of what 20% of the population is doing. In most cases, banks will suggest that parents open savings accounts, or even stocks and bonds. Stocks are highly volatile, and savings accounts or bonds may not take inflation into consideration. Many finance experts will tell you that the longer it takes for you to need the money, you can take more risks with it. I strongly disagree with them.
There are also several state funded 529 plans that should be considered. It really all comes down to how you plan to use the funds. By this we mean - Are you going to want money available for non college costs like off campus apartments, food, a car, etc. Then if so, a 529 plan may not be for you.
Read the full article titled How To Compare Your Investment Options For College.
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