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
