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Planting Seeds for a Brighter Future

May 29, 2018

Planting Seeds for a Brighter Future

Happy College Savings Day; now is a perfect time to think about your child’s future college expenses. College costs will continue to rise, but planning ahead can help reduce the financial burden when the time comes to pay for college. The secret is to save a little each month, take advantage of compounding, and have a sum of money waiting for you when your child is ready for college. The chart below illustrates how starting early can be a great benefit to you and your child.

 

Childs Age Now

$100/month

$200/month

$300/month

$400/month

Newborn

$38,735

$77,471

$116,208

$154,941

4

$26,231

$52,462

$78,693

$104,941

8

$16,388

$32,776

$49,164

$65,552

10

$12,283

$24,566

$36,849

$49,132

14

$5,410

$10,820

$16,230

$21,640

16

$2,543

$5,086

$7,629

$10,172

Table assumes an after-tax return of 6%, compounded monthly to age 18. This is a hypothetical example and is not intended to reflect the actual performance of any investment

Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information contained herein was received from sources believed to be reliable, but accuracy is not guaranteed. Information provided is general in nature. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success.

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