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What is a good investment (bonds mutal funds savings account...etc) that i could start, for college money.? |
I just had a kid and want to start saving for her and dont really know were to look to invest or dont really know anything about this type of stuff....help!!!! Look no further, whatever state you live in there is an investment vehicle called a 529 plan. 529's were created for your exact situation, and are the best way to put money away for your child's college. You have two options, either set up a 529 through your state (which usually takes some leg-work on your part) or hire an advisor to do it for you (in which he/she will choose the investments inside the 529 etc). There really is no other option for what you are looking to do and you'll even be able to write off your investment from your state taxes in most cases. Visit www.savingforcollege.com for more info. This is a non-biased site that will give you accurate info and help you send your little one to college in 18 years. Fidelity, hands down. Look into LEAPS and/or buying options - preferably buy long ITM (in-the-money) options which will provide you with a low risk, high rate of return scenario. I'd suggest you make regular contributions to a balanced no-load mutual fund. At the below link you will see 6 of these funds rated as quite good by Forbes. Hope this helps. Since your child's college is a long way off, you can invest in a mix of stock and bond mutual funds. You can do this through a special account called a 529 plan, which has tax advantages. |
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Good start, but to keep up with the pace of inflation and college costs, savings bonds won't do it. A 529 college savings plan or a Coverdell savings account is the way to go. An investment co... If your still in the Army, have you maxed out your TSP yet? That would be the next logical step. The most secure bonds generally don't pay a lot more that CD specials that you can find. ... It depends on the maturity time of the bonds, as in when do the bonds mature. I believe that short-term investments with the maturity date falling within one year are current assets, and bonds wit... It is an Index Linked bond. Most Index Linked bonds pay coupons based on the index and then pay Par at maturity. A zero coupon bond does not pay any coupons -- so the only way they could link... use algebra. x= portion invested in bonds y= portion invested in stocks .06x +.10y = .075 x + y = 1 x=.635 y=. 375 That proportion will yield a probable return of 7.5% However... When you buy bonds of US Corporations, you get what you negotiate. In order to figure out what your rights are, you need to read the bond's covenent. Some bond covenents protect the invest... index mutual funds available from Vanguard, Fidelity and a number of other companies are your best bets. They have low expense ratios, which really does help over time. Plus they generall outperf... No, just the opposite. When risk is higher, people won't buy the bond unless the yield is higher too. If the issuer defaults (i.e., cannot pay back the loan), the real yield may be zero. ... |
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