College Planning Investment
Education is the key to success and happiness. It is widely known that a college degree will get you more opportunities than just a simple high school diploma. That is why planning for your child’s education and future should be an important factor when it comes to planning ahead and saving. Evidently the sooner you start the more you will accumulate.
Planning Your Child's University Tuitions
Everyone’s savings plan will be different based on a host of factors — the number of children they have, which college their child wants to attend, how much they have saved already and whether friends and family will contribute. Work with Joseph Eid, a financial professional, create a savings strategy that works for your family — and begin!
The sooner you start saving, the better. Even modest savings can pack a punch if you give them enough time to grow. Investing just $100 a month for 18 years will yield $48,000, assuming an 8 percent average annual return.
Stocks are best for your college savings portfolio. With tuition costs rising faster than inflation, a portfolio tilted toward stocks is the best way to build enough savings in the long term. As your child approaches college age, you can shelter your returns by switching more money into bonds and cash.
With mutual funds, investing for college is simple. Investing in mutual funds puts a professional in charge of your savings so that you don't have to watch the markets daily.
You don't have to save the entire cost of four years of college. Federal, state, and private grants and loans can bridge the gap between your savings and tuition bills, even if you think you make too much to qualify.
The approval process for college loans is more lenient than for other loans. Late payments on your credit record aren't automatic grounds for refusal of a college loan.
Lenders can be flexible when it's time to repay.There are still ways to cut costs after you graduate and begin repaying your student loans.