Saving for college has never been more important – or seemed more challenging. But the cost of college has soared 1,120% over the past 35 years and shows no signs of stopping.1 While preparing for this growing goal may seem like a challenge, it doesn't have to be a headache.
Whether you use a 529 account or another type of investment account, using ETFs at the core of your portfolio can help bolster your savings.
ETFs and saving for college
- Low costs; more savings
Costs add up; using ETFs, which have low costs, can help you keep more of what you earn over time.
- Returns can grow as tuition costs rise
With tuition costs rising four times faster than the rate of inflation,2 a college fund needs growth potential. Because there are both US and international stock ETFs, you can build a portfolio designed to grow with time.
- Potential to save on taxes
When every dollar counts, the cost of taxes can't be ignored. ETFs are designed to help minimize your tax bill, adding to your savings over time.
- Diversification simplified
The key to a successful long-term portfolio is diversification. Because ETFs offer hundreds of stocks or bonds in one fund, diversification is built in.
- Easy to use.
Because ETFs are diversified and generally follow an index, you don't have to worry about doing research on individual stocks and bonds. Take one worry off the table with easy-to-use ETFs.