Invest for Long Term and College Tuition Will Take Care of ItselfOne of the most obvious flaws with the government sponsored savings plans is they encourage families to save for a one-time event. This is a very shortsighted approach to money management. If, instead, you think of every savings goal as having long-term, short-term and incremental components, you will achieve far greater returns and reach your savings goals much more easily.
What does such an approach look like? First, you should establish the long-term component to your investing strategy. It will serve as your road-map to success. For instance, if you need to save $100,000 over the next ten years, you need to average $10,000 per year in savings. Whether you achieve savings by setting aside funds from current earnings or funds you earn from passive investing, is up to you. We realize, to some individuals, $10,000 may seem like a very large amount, however, it really is not so daunting when you understand the types of investments available to you. Establishing your plan and taking action are the most important aspects of your long-term goal.
The short-term component of your plan will come in the form of maximizing short-term investment returns. Again, real estate investing is one of our primary means of accomplishing this. We do, however, work with several companies that can help you invest small amounts (or large amounts) of money over 3-month, 6-month, or 12-month time frames. The rates of return are contractually guaranteed and your principal is guaranteed. These products offer rates of return substantially higher than mainstream investments such as Certificates of Deposit. You can then reinvest the earnings and grow your funds at an accelerated pace. We are specialists in increasing the velocity of earnings in a portfolio to help you meet your goals on time.
Lastly, break down your savings plan into incremental or mini goals. Once you do this, you will see that the target savings goal is not so daunting after all. Let’s assume you would like to save $100,000 for your child’s education and you have 10 years to accomplish this. If you break it down to a monthly level, you need to set aside slightly more than $400.00 per month. With a little bit of planning, you are back to focusing on the incremental aspect of your goal. Now you can see your goal coming to light as you have accounted for it in 3 different time frames. When you join Wealth2020, Inc. as a client, we will introduce you to a whole new world of investing and you will see that this is not a difficult goal to achieve after all.
In summary, to ensure success with any savings program, it is best to establish a long-term component to serve as your road-map to your target and a short-term element to increase your chances for meeting your goal in a timely manner, if not ahead of schedule. Establishing a long-term goal also allows you the freedom to adjust elements of your plan to accommodate larger goals.
Investing For College and More Investing Money While In College Government Sponsored College Savings Programs The Best Way to Pay for Your Kid’s College Education |