Experts say that on average, college graduates earn almost twice as much as high-school graduates. Clearly, one of the best investments you can make for your children or grandchildren is an investment in their educational future. The projected average cost for your toddler’s four-year degree at a public college will total nearly $100,000. You would have to invest almost $4,000 per year in a savings account, assuming it earns interest at an average rate of 5% per year, to equal that amount by his or her freshman year. And should your child decide to attend a private college, tack on about $113,600 more to your savings goal, bringing your annual investment to $8,500.
But even without time on your side — if your children are teenagers, for example — a sound investment strategy coupled with knowledge of other college financing options can put your children on the road to a valuable four-year college degree. At Kassouf Wealth Advisors, we can guide you through the many alternative investment plans including State Sponsored Prepaid Tuition Plans, IRAs and other Section 529 Plans.