Tuesday, April 22, 2014

Allocating college investments

If you keep up to 80 percent of your investment money in stocks (diversified
worldwide) with the remainder in bonds when your child is young, you can
maximize the money’s growth potential without taking extraordinary risk. As
your child makes his way through the later years of elementary school, you
need to begin to make the mix more conservative — scale back the stock percentage to 50 or 60 percent. Finally, in the years just before entering college,
whittle the stock portion down to no more than 20 percent or so.

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