- Pre-Funding the Cost
- Your Pre-Funding Strategy Depends upon where You Are Now
- Monthly Investment Program
- Your Investment Objective
- Understand Risk
- Basic Strategies
- How Is Investing for College Different from Other Investing?
You just brought the baby home from the hospital and you decide to start a monthly investment program to fund four years of college costs at $30,000 per year (in today's dollars). You'll need to save $585 per month through your child's senior year in college to pay the $120,000 cost (this assumes a 5% inflation rate and a 7% investment earnings rate).
Suppose your child is ten years old and you haven't saved anything yet... now you'll need to save $984 per month to fund the $120,000.
If your child starts college in one year and you haven't done any pre-funding, you'll need to save at least $2,175 per month through their senior year of college to fund the $120,000 for the four years. That's more than double what you would have needed if you started saving when your child was ten. That's why we recommend you begin a monthly funding program as early as possible.
- ARE NOT A DEPOSIT
- ARE NOT FDIC-INSURED
- ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- ARE NOT GUARANTEED BY THE BANK
- MAY GO DOWN IN VALUE
Important information about procedures for opening a new account
To help the government fight the funding of Terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
Investment products are offered through Osaic Institutions, Inc., Member FINRA/SIPC. Insurance products offered through Osaic Institutions, Inc.
