Education Funding Strategy | There’s More Time Than You Think
Good news, right? So what’s the trick?
Actually, there is no trick. Follow along for about two minutes.
For the sake of illustration, let’s say a child is born this year and you want to plan financially for her college education. We’ll make the assumption that you expect to pay for a traditional four year degree. Further, you have a personal goal to pay for college without the need to take on any debt at the time the tuition bills are due.
How long do you have to grow your investments to meet this obligation?
Related: See Financial Calculation Tutorial – Paying for College
In the US, most children are ready to start college at eighteen or there about. Therefore, you probably expect that you have 18 years to save and invest for their education if you start the year the child is born. But in reality, you have about three and a half years longer or 21.5 years.
“How’s that?” you ask.
Just think about it f