Savings Options

How Is Investing For College Different Than Other Investing?

It’s not. Any investment program, for any purpose, needs to consider rate of return, risk and when you will need the money. For college investing, when your child is young, you have a long-term investment horizon. You can consider investing in stock mutual funds. When your child is 16 or getting close to going to school (you will need the money soon to pay tuition) you need to reduce your investment risk and move your investments to cash accounts (bank accounts and money market funds) or short-term bonds. 

This is not much different than saving for retirement... or saving for a house. The process is the same. What is your goal? How much do you have to work with? When will you need the money? Remember to always focus on when you will need the money; that will help you decide which investment vehicles to consider.

In addition to investing for college via stocks, bonds and mutual finds, there are additional savings vehicles to potentially grow your college fund. Click on any item on the list above to read more.

>> Sending Children to College
>> Qualified Tuition Programs/529 Plans
>> Coverdell Education Savings Account
>> EE Savings Bonds
>> Zero Coupon Bonds

Aid & Other Options

Despite all your good intentions, you may not be able to save enough to meet the tuition and room and board bills when your child starts college. Here we discuss loan alternatives.

Private Loans For College

If your credit rating is good, you may qualify for various types of commercial loans.  Check with your financial institution for any available commercial student loan programs.

>> Federal Loans and Grants
>> Penalty-Free IRA Withdrawal
>> Financial Aid
>> Scholarships

Borrowing For College

Look at your options to borrow funds for college expenses.

>> Borrowing from your Retirement Plan
>> Borrowing from your life insurance policy
>> Home Equity Loans

To learn more, please contact: