The first thing you need to do is take a deep breath and determine what college will actually cost.
Review Portfolio 102, which discusses in detail how to calculate the cost of your goals. Whether you're saving for retirement, for a home, or for your child's education, goal setting comes down to answering a few key questions:
- How much will the goal cost each year?
- How many years will you be tapping into this portfolio to pay for the goal?
- What will the total cost of the goal be?
- What will inflation do to that total cost?
Next, you need to figure out what asset mix will get you to that goal. If you have not taken Portfolio 105: Determining Your Asset Mix, you may want to take a few moments to do so now.
Now you know what your goal will cost and what your asset mix should be. Next, you need to choose the best college-saving plan for your situation.
Choosing a College-Saving Plan >>