Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 76

To keep up with or stay ahead of college price increases (which are rising faster than overall inflation), you must invest for growth. At the same time, you have to keep an eye on your time horizon; kids grow up fast (see the section “Reaching Your Goals with Funds,” earlier in the chapter).

The younger your child is, the more years you have before you need to tap the money and, therefore, the greater the risk. A simple rule: Take a number between 30 (if you’re aggressive) and 50 (if you’re more conservative) and add that to your child’s age. Got that number? That’s the percentage you should put in bonds; the rest should go into stocks. Be sure to continually adjust the mix as your child gets older.

For a list of good stock and bond funds to invest in, see Chapters 12 and 13. Pay particular attention to hybrid funds, which invest in both stocks and bonds and may already reflect your desired mix. If you want to find out more about getting your finances in order and planning for college costs, read the latest edition of my book Personal Finance For Dummies (Wiley).