College Savings

Like automobiles and houses, the cost of a college education is spiraling upward at a remarkable pace. In recent years, some schools have raised their tuition at rates that are double that of inflation. In fact, a child born today will probably face college costs ranging from $68,000 for four years at a public university to over $177,000 for a degree from a private institution. As high as these figures may seem, they don't have to put a college degree beyond your child's reach.

The key is to invest for your child's future now.

The first step is to estimate the price of your child's education. Once you have estimated how much the bill will come to, you will need to estimate how much you will need to invest.

An OFG Financial Services, Inc. Investment Representative will assist you in making these estimates and then will advise you where to invest. With their expertise, you'll be able to pinpoint your objectives and select the investments that best match. Three important factors to consider are:

1. The approximate cost of your child's education.
2. The age of your child and the degree of investment risk you find acceptable.
3. Tax consequences.

Although each of the points above is significant, your child's age will probably play the most important role in deciding how your money should be invested. If college is just around the corner, you will most likely favor a conservative investment strategy; however, if time is on your side, you may opt for a more aggressive approach.

For example, if your child is still an infant, college is quite a few years away and you may want to consider an aggressive investment that has the potential for capital growth. On the other hand, if your child is in grade school, your best choice may be a mutual fund that offers a combination of current income plus capital appreciation. Finally, parents with children who are of high school age will probably feel most comfortable with an investment that provides high current income and a greater degree of capital preservation.

For more complete information, see the OFG Financial Services, Inc. Registered Representative.

Townsite, bldg. no 2, suite105 • 120 SE 6th Ave. •  Topeka, KS 66603-3515  •  (785) 233.4071  •  fax (785) 233.5746