Comments on: Investing for College Requires a Slightly Different Approach Compared to Investing for Retirement http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/ Helping a unique generation achieve financial independence. Thu, 24 May 2012 01:09:21 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Armen Shirvanian http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-94458 Armen Shirvanian Tue, 18 Nov 2008 04:56:23 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-94458 This method of investing in stocks earlier in the procedure, and switching those investments to bonds through the process, appears to be a solid way to match risk taken with the time left in the investment process. Getting to the point of a college education being provided is a larger item than one might think when hearing about it. This method of investing in stocks earlier in the procedure, and switching those investments to bonds through the process, appears to be a solid way to match risk taken with the time left in the investment process. Getting to the point of a college education being provided is a larger item than one might think when hearing about it.

]]> By: Investing http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93526 Investing Wed, 12 Nov 2008 05:06:47 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93526 Stocks are an easy way to make passive income. A stock in investing terminology refers to one share of the ownership of a business corporation. If you own one or more shares of a stock, then you are entitled to your share of the company's profits, whenever the company makes a profit. Conversely, if the company loses money, the value of your share of the company decreases. Assuming you have money to invest, all you have to do is buy one or more shares of stock, and sit back and let the market do its thing. Stocks are an easy way to make passive income. A stock in investing terminology refers to one share of the ownership of a business corporation. If you own one or more shares of a stock, then you are entitled to your share of the company’s profits, whenever the company makes a profit. Conversely, if the company loses money, the value of your share of the company decreases. Assuming you have money to invest, all you have to do is buy one or more shares of stock, and sit back and let the market do its thing.

]]> By: Nick http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93525 Nick Wed, 12 Nov 2008 04:46:12 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93525 As a college student, I see many peers go away to school at small liberal arts colleges and pay $30k a year in tuition. I just don't understand why people always overlook state schools. Sure, they might not be your ideal situation, but isn't it better than the $100k of debt later on down the line? Sure, my school wasn't my first choice, but it's still a top 50 school for my degree (finance), and I pay $3.5k a year in tuition, total. As a college student, I see many peers go away to school at small liberal arts colleges and pay $30k a year in tuition. I just don’t understand why people always overlook state schools. Sure, they might not be your ideal situation, but isn’t it better than the $100k of debt later on down the line? Sure, my school wasn’t my first choice, but it’s still a top 50 school for my degree (finance), and I pay $3.5k a year in tuition, total.

]]> By: jim http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93485 jim Tue, 11 Nov 2008 14:41:34 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93485 Great article, I think so many people focus on the mechanism by which they invest rather than how that mechanism is affected by your time horizons. I think that with your financial background, you're able to step back and see everything so it's good you're sharing that wisdom here. The timeline is a nice added touch. Great article, I think so many people focus on the mechanism by which they invest rather than how that mechanism is affected by your time horizons. I think that with your financial background, you’re able to step back and see everything so it’s good you’re sharing that wisdom here. The timeline is a nice added touch.

]]> By: Andrew Knight http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93459 Andrew Knight Tue, 11 Nov 2008 04:57:50 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93459 Hi Jeremy, I'm emailing you in regards to a followup email I sent you a month ago in response to a partnership, have you had a chance to think about it? If you have any questions or would more information, please advise me and we can go from there. Kind Regards, Andrew Knight Hi Jeremy,

I’m emailing you in regards to a followup email I sent you a month ago in response to a partnership, have you had a chance to think about it?

If you have any questions or would more information, please advise me and we can go from there.

Kind Regards,
Andrew Knight

]]> By: Caleb Nelson http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93442 Caleb Nelson Mon, 10 Nov 2008 23:20:35 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93442 I'm far from investing for my kids college fund, considering I'm not planning to have any for quite some time. I definitely would take your advice to invest the money that I would've otherwise just tied into a savings account. Have you considered residual income, like a blog or small investment, to help ease the woes of college spending. I look at my retirement more like: how much money would I need in a month to live how I want to live in retirement? I see $8000/month, rather than a lump sum like $300,000. Caleb www.mefinanciallyfree.blogspot.com I’m far from investing for my kids college fund, considering I’m not planning to have any for quite some time. I definitely would take your advice to invest the money that I would’ve otherwise just tied into a savings account.
Have you considered residual income, like a blog or small investment, to help ease the woes of college spending. I look at my retirement more like: how much money would I need in a month to live how I want to live in retirement? I see $8000/month, rather than a lump sum like $300,000.

Caleb
http://www.mefinanciallyfree.blogspot.com

]]> By: Aya @ Thrive http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93439 Aya @ Thrive Mon, 10 Nov 2008 22:51:25 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93439 @Jeremy: True, I agree that there is a risk in any investment strategy. I guess it's what makes it so hard to make those major financial decisions difficult but also rewarding when they work out as we planned. Overall though, nicely put - I'm sure a lot of people can benefit from your suggestions and I hope they do. @Jeremy: True, I agree that there is a risk in any investment strategy. I guess it’s what makes it so hard to make those major financial decisions difficult but also rewarding when they work out as we planned. Overall though, nicely put – I’m sure a lot of people can benefit from your suggestions and I hope they do.

]]> By: Jeremy http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93438 Jeremy Mon, 10 Nov 2008 22:46:10 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93438 @ToughMoneyLove - That's a good point. In reality, most people do this to some degree anyway. People rarely save up enough to fully fund college, and it typically means they have to adjust their cash flow to pay some of the bills. But, the unfortunate thing is most people don't plan for this early enough. @Aya - The current market conditions certainly cast doubt on the effectiveness of investing, but even so, people who plan accordingly and take on only enough risk as they need to achieve their goals are still in good shape. And sure, there are plenty of safer alternatives, but when you avoid one type of risk, you only take on another type of risk. You can save money outside of the stock market and eliminate market risk, but then you increase the risk of not saving enough, interest rate risk, inflation risk. If you avoid accounts like 529 plans, you lose out on tax-deferred growth and tax-free withdrawals, and in many cases, even tax credits on contributions. So, to be sure, there are plenty of alternatives and ways to accumulate money for a specific goal, but you have to weigh the pros and cons and determine if you're really reducing risk, or just shifting towards another type of risk. @ToughMoneyLove – That’s a good point. In reality, most people do this to some degree anyway. People rarely save up enough to fully fund college, and it typically means they have to adjust their cash flow to pay some of the bills. But, the unfortunate thing is most people don’t plan for this early enough.

@Aya – The current market conditions certainly cast doubt on the effectiveness of investing, but even so, people who plan accordingly and take on only enough risk as they need to achieve their goals are still in good shape.

And sure, there are plenty of safer alternatives, but when you avoid one type of risk, you only take on another type of risk. You can save money outside of the stock market and eliminate market risk, but then you increase the risk of not saving enough, interest rate risk, inflation risk. If you avoid accounts like 529 plans, you lose out on tax-deferred growth and tax-free withdrawals, and in many cases, even tax credits on contributions.

So, to be sure, there are plenty of alternatives and ways to accumulate money for a specific goal, but you have to weigh the pros and cons and determine if you’re really reducing risk, or just shifting towards another type of risk.

]]> By: Aya @ Thrive http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93437 Aya @ Thrive Mon, 10 Nov 2008 22:35:59 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93437 If only investing money could actually go as smoothly as organizing the plan! My skepticism might just be coming from the recent state of the economy, and I wonder how high the risk is in following your advice completely. Are there safer measures that can be taken, even if it might take more time and effort? If only investing money could actually go as smoothly as organizing the plan! My skepticism might just be coming from the recent state of the economy, and I wonder how high the risk is in following your advice completely. Are there safer measures that can be taken, even if it might take more time and effort?

]]> By: Donny Gamble http://genxfinance.com/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/comment-page-1/#comment-93416 Donny Gamble Mon, 10 Nov 2008 17:10:34 +0000 http://genxfinance.com/2008/11/10/investing-for-college-requires-a-slightly-different-approach-compared-to-investing-for-retirement/#comment-93416 I think when saving money for college, one needs to have a more diversified portfolio with less risk. This is a shorter period of time than your actual retirement savings so one needs to make sure that their money pretty much is on a gradual increase over time. I think when saving money for college, one needs to have a more diversified portfolio with less risk. This is a shorter period of time than your actual retirement savings so one needs to make sure that their money pretty much is on a gradual increase over time.

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