These Funds Could Be Good Start to Higher Education
By Saghir Aslam
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live with dignity and fulfill their moral obligations towards charitable activities)
Most parents dream of sending their kids to college. They also have nightmares about how they’re going to pay for it.
Who can blame them? It costs about $35000 to60000 a year to send a kid to a private college these days. The bad news is tuition and room and board are supposed to double by 2015.
What’s a parent to do? Your best bet is to invest in qualified educational IRA many of the brokerage firms offers this facility you should take a look at the track record of the last 1 years, 5 years, 10 years and since inception. You will be able to make a better decision once you have checked many different programs.
Keep in mind this money will grow tax free which is a huge advantage as long as it used for education. This is the best vehicle for you to come back the high prices.
Why? Investing in equities is one of the best ways for you to create wealth. Low-yielding bonds and cash simply won’t generate the returns you’ll need to finance a four-year college education.
Over the past 20 years, for example, stocks in the S&P 500 have gained 17.8% a year. Intermediate government bonds and 30-day Treasury bills returned only 9.9% and 7.2 %.
We Muslims can’t invest in fixed securities anyway. So two of the best investments are real estate and stocks. Evaluate the pros and cons of both investments and decide which will be right for you.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)