Mixing Asset Classes can help to moderate risk

Investment Profiles

	Domestic Stock	Foreign Stock	Bonds	Short-Term	Highest 12-mo return	Lowest 12-mo return	Historical Average Annual Return
Conservative	20%	-	50 %	30 %	31.06 %	-17.67 %	6.16 %
Balanced	45%	5%	40 %	10 %	76.57 %	-40.64 %	8.18 %
Growth	60%	10%	25 %	5 %	109.55 %	-52.92 %	9.23 %
Aggressive Growth	70%	15%	15 %	-	136.07 %	-60.78 %	9.94 %

Source: Fidelity's Stages magazine

For students: 529 college savings plans
- Any earnings are accumulated on a tax-deferred basis
- As long as the money is used for qualified higher education expenses, you don't pay federal income tax when you withdraw the money.
- Better than a savings account, Coverdell Education Savings Account (ESA), UTMA (uniform transfers to minors account) and UGMA (uniform gift to minors account) in most cases.
- You can go to college in any state that offers the plan.
- Up to $300,000 can be contributed (as opposed to just $2,000 for a Coverdell ESA).

Recommended sources:
http://www.savingforcollege.com
Joseph Hurley's books