College Savings and the Market

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Just a short time ago, tuition bills arrived hand-in-hand with nightmare producing, stomach-churning market volatility.

For those with college funds in financial vehicles subject to market ups-and-downs, it may be too late to act, especially if you need to pay the bill. If payment is not yet due, then it’s a sit and hope scenario.

Sit and hope the market shoots back up and you can “recapture” the money that has been lost. Make no mistake, if your money is subject to the market, you can’t recapture what has been lost; you can only return to and exceed the value once held.

So, what can you do?

First of all, stop “saving” money in financial vehicles that are subject to market forces. That’s not savings; it’s investing. It’s gambling.

Don’t gamble with money you can’t afford to lose!

Place your money where it won’t be lost when the market shoots downward, where it will earn a guaranteed return compounded annually, where you have access to it if and when you need it, where it won’t count against you in financial aid calculations, and where you can use it for something other than college-related expenses if it’s not needed for those expenses.

Be willing to sacrifice potential gains in order to avoid horrendous losses!

If your money is invested, there exists no foolproof way to prevent that money from loss when markets are volatile and the trend is downward. However, you can plan ahead and save.

Don’t invest and hope the money is there when you need it.

Contact us to learn how to properly save for the expense of a college education.

 

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