College Funding

Keep in mind that the age of your child may influence how you invest and the potential return on your savings and investments.

These results show the total cost of four years of college for your child and the amount you would have to save year by year — or the lump sum amount you would need now — at the rates of return and inflation you specified. Be aware that the sooner you begin the more manageable the amount you need to save each year. Return to the input page and increase your child’s age by one year to see the cost of waiting a year to begin your college funding plan.

Are you on target to meet your college savings goal? One of the factors that will determine if you reach your goal is whether the earnings on your college fund meet your expectations. This graph shows how much you’ll accumulate if your college fund’s earnings meet your expectations or fall below your expectations by 2 percent. You may be surprised by the effect of a mere 2 percent difference in your expected rate of return. Total accumulated if earnings fall below your expectations by 2 percent: $0.

Growth of College Savings

The information provided is not specific investment advice, a guarantee of performance, or a recommendation. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk. For simplicity the effects of taxes, fees, and expenses are not considered in this illustration and would reduce the results shown if they were.