Saving for Your Kid's College: Start Here, and Start Now
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What do you think of buying a particular stock as a long-term strategy to pay for my daughter's college education? -- S. (via Stockpickr Answers)
To the question of whether any single stock is a good long-term investment strategy to finance college, the answer is an unequivocal "No."
When you're looking at a long-term, big-budget goal like college, asset allocation rules apply (see "Allocate Your Assets Like a Pro").If you want to avoid the headache and risk of allocating an education-focused portfolio yourself, taking the hands-off route with a target-date mutual fund (offered by most 529 plans ) is a good way to go. Here's what you need to know if you're ready to set up a college savings plan for your little Einstein. Paying for College: It's All About Goals According to Stuart Ritter, a certified financial planner at T. Rowe Price (TROW), there are three decisions you need to make when planning for any financial goal: how much to save, what kind of account to use and what investment strategy to follow.
A Tear-Free Guide to College Savings
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