0
Developing a Funding Strategy


Monthly Investment Program

This table* shows how much more you have to invest each month, the later you begin a college investment program for your child.

Child's Age
Now

Public College
$20,000/Year

College
$30,000/Year

Private College
$40,000/Year

0 $390 $585 $780
1 $406 $609 $812
2 $423 $634 $846
3 $442 $663 $884
4 $462 $694 $924
5 $486 $728 $972
6 $511 $767 $1,022
7 $541 $811 $1,082
8 $574 $860 $1,148
9 $612 $917 $1,224
10 $656 $984 $1,312
11 $708 $1,062 $1,416
12 $770 $1,155 $1,540
13 $846 $1,269 $1,692
14 $941 $1,411 $1,882
15 $1,062 $1,593 $2,124
16 $1,224 $1,836 $2,448
17 $1,450 $2,175 $2,900
18 $1,789 $2,683 $3,578

* Assumes you start investing at the age of your child in the left-hand column and you invest each month through their senior year of a four-year college. College costs go up 5% per year and you invest your money, after taxes, at 7% per year.

To reasonably expect a 7% rate of return, you're going to have to take some risk and invest in stocks or growth investments.

Clearly, the longer you wait, the more you'll have to put away each month to cover the cost. Saving now makes it easier when the time comes to pay the bills.



Share Article:


Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured Redstone Federal Credit Union deposits and are not NCUA insured. These products are not obligations of the Redstone Federal Credit Union and are not endorsed, recommended or guaranteed by Redstone Federal Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: Alabama and Tennessee.

Redstone Federal Credit Union and Redstone Brokerage Services are not registered broker/dealers and are not affiliated with LPL Financial.


BrokerCheck

Contact a Representative