How to Invest for College Education
The day you bring your new little bundle of joy from the hospital, you’re most likely focused on when to feed him next and how to change his diaper. But, in between all of the chaos of caring for a baby, you should be thinking about saving for your child’s college education.
Yes, it may be 18 years down the road, but it is literally never too early to start saving for a child’s college education. The earlier you begin saving, the better off you and your child will be. The following are four tips you can use when making investments in order to pay for college.
1. Start early and take advantage of interest rates. If you begin saving for a child’s college education during their first year of life, that money will be worth about 5 times as much as the money you save in the year prior to them attending college. As stated previously, it is never too early to begin thinking about investing in your child’s future.
2. Start aggressive. If you are saving during the early years of your child’s life, then take an aggressive approach. Ensure that your investment plan will take a more conservative route as year’s go on, and it gets closer to the time your child will attend college.
3. Always bear in mind the risk of an investment. All investments have some risk associated with them, keep in touch with your financial planner and make sure you make the stock choices you are most comfortable with. What works for one family may not work for another, so it’s important to carefully analyze the risks.
4. Make it a point to reevaluate your investments. Consider doing this at least once per year, in order to ensure that your accounts are doing what you want them to do. Always keep in mind the current market and economic climate, and keep in contact with your financial planner.
Your Child’s College Education Investment
The cost of college continues to rise, and it is important to begin saving as early as possible for your child’s college education. A professional financial planner will be able to give you a variety of different investment options, and will go over which ones will work best for your budget, your calendar and your goals. Different states will offer different investment plans, whether it’s a 529 college savings plan, or a state-funded investment program.
Whenever you are dealing with investments, it is important to consult someone who is a professional. A financial planner will be able to walk you through your options, and explain to you the terms and conditions in an understandable way. When you are working with a professional, you can ensure that your money is going in the right place and the investment will be protected. When it comes to your child’s education and future, you want to make sure you make the right decisions. Investment programs are a great way to save this money, but it’s important to do proper research as well.
For a related article about planning your child’s future, follow the link to begin Investing in Your Kids.
Have you begun investing in your child’s future… we’d love to hear about it, please comment below?