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9. Financial Planning > Balance Risk and Return for College Costs

Balance Risk and Return for College Costs

Building a college nest egg can take some time, which means that your investment strategy must change depending on where your child is on the road to college.

With college tuition soaring [Hack #91] , parents who want to pay for their kids’ education need as much help as they can get. Tax-advantaged education accounts [Hack #92] and [Hack #93] are a huge help, but by far the best thing for college savings is time. By starting to save for college early, you can invest in stocks and earn returns that keep up with or exceed college tuition increases. However, stocks are risky for the short term [Hack #37] , so you must move your savings into safer investments as your child gets closer to college age.


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