What 大学投资 Options Do I Have?
As tax laws change, college 投资 planning becomes increasingly complex. The most beneficial strategies for creating a college fund are quite similar to other 投资 tactics. Investment products that are tax deferred, 免税, or transferable without tax consequences can be especially advantageous.
This could be even more effective if you do your planning early.
One important aspect of an 投资 is its balance of yield 和 risk. Determine the amount of risk you can tolerate, given the amount of time you have to recover from any potential losses.
Take the time to familiarize yourself with the financial aid formulas. This could help you determine whether assets 和 income should be in your name or your child’s name. Structuring your 投资s ahead of time can have a significant effect on the net amount of funds available for your child’s education.
There are a number of funding options available for your college 投资 plan. This list contains a few of the more common.
存单
CDs offer a reasonable return with a relatively high degree of safety. They are FDIC insured to $250,000(每个存款人, per federally insured institution in interest 和 principal) 和 offer a fixed rate of return, whereas the principal 和 yield of 投资 securities will fluctuate with changes in market conditions.
The interest earned on a CD is taxed as ordinary income. 而且CDs的流动性不强. You could pay a significant interest penalty for withdrawing money before it reaches maturity.
债券
很多人认为.S. government bonds to be among the least risky 投资s available. 它们是由美国政府担保的.S. government as to the timely payment of principal 和 interest.
The interest on Series EE bonds is tax-free to low- 和 middle-income families if the proceeds are used to fund a college education. This benefit phases out for individuals 和 couples in the upper middle class 和 above.
Zero-coupon bonds are purchased at a substantial discount 和 pay their face value upon maturity. Because they do not pay interest until maturity, their prices tend to be more volatile than bonds paying interest regularly. Thus zero-coupon bonds make it possible to buy high-quality bonds for far less money up front. Interest income is subject to taxes annually as ordinary income, even though no income is being paid to the investor.
The return 和 principal value of bonds fluctuate with market conditions 和 when sold, bonds may be worth more or less than their original cost.
股票及共同基金
Many people who use stocks to fund a college 投资 program invest in mutual funds. Mutual funds are professionally managed. They buy 和 sell securities to meet the specific goals of their fund, weighing risk against security, 产量与质量的关系. They can be an effective addition to a college 投资 plan. The 投资 return 和 principal value of stocks 和 mutual funds fluctuate with market conditions, 和, 当出售或赎回时, shares may be worth more or less than their original cost. Bond funds are subject to the same inflation, 利率, 和 credit risks associated with their underlying bonds. 随着利率上升, 债券价格通常会下跌, which can adversely affect a bond funds performance.
Mutual funds are sold by prospectus. Please consider the 投资 objectives, risks, charges, 和 expenses carefully before investing. 招股说明书, which contains this 和 other information about the 投资 company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.
做选择
There are college 投资 options to fit almost any investor. No matter how modest or how ample your income, careful planning could be the most effective way to “find” the money for college. The key is to start early 和 remain consistent.
The information in this newsletter is not intended as tax, 法律, 投资, or retirement advice or recommendations, 和 it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or 法律 professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written 和 prepared by Broadridge Advisor Solutions. © 2024 Broadridge Financial Solutions, Inc.