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College Planning and Funding
Will you be able to afford to send your children to college?
 Like automobiles and houses, the cost of a college education is spiraling upward at a remarkable pace. In recent years, some schools have raised their tuition at rates that are double that of inflation. In fact, a child born today will probably face college costs ranging from $92,000 for four years at a public university to over $227,000 for a degree from a private institution. As high as these figures may seem they don't have to put a college degree beyond your child's reach.
The Cost of a College Education
(Alternate plain text view of table)
| Four Years at a |
|---|
If your
child is now:
(years of age) | He or she
will enter
college in: | PUBLIC
COLLEGE
will cost: | PRIVATE
COLLEGE
will cost: |
|---|
| 15 | 3 yrs. | $38,629 | $94,993 |
| 14 | 4 yrs. | $40,946 | $100,693 |
| 13 | 5 yrs. | $43,403 | $106,734 |
| 12 | 6 yrs. | $46,007 | $113,138 |
| 11 | 7 yrs. | $48,768 | $119,927 |
| 10 | 8 yrs. | $51,694 | $127,122 |
| 9 | 9 yrs. | $54,796 | $134,749 |
| 8 | 10 yrs. | $58,083 | $142,834 |
| 7 | 11 yrs. | $61,568 | $151,404 |
| 6 | 12 yrs. | $65,262 | $160,489 |
| 5 | 13 yrs. | $69,178 | $170,118 |
| 4 | 14 yrs. | $73,329 | $180,325 |
| 3 | 15 yrs. | $77,729 | $191,145 |
| 2 | 16 yrs. | $82,392 | $202,613 |
| 1 | 17 yrs. | $87,336 | $214,770 |
| Under 1 | 18 yrs. | $92,576 | $227,656 |
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I. Set Your Target
Estimate the price of your child's education (print this out if you wish)
| Child's Name | Child's Age | Dollars Needed |
|---|
| _______________ | ___________ | $______________ |
| _______________ | ___________ | $______________ |
| _______________ | ___________ | $______________ |
| Total cost of college education(s) | $______________ |
|---|
Less amount currently available
(securities, savings, etc.) |
$______________ |
|---|
Total additional amount needed |
$______________ |
|---|
Step II. Build for the Future1
(Alternate plain text view of table)
Age of
Child
Now | Monthly investments2 required to accumulate these amounts by age 18 |
|---|
| $25,000 | $35,000 | $50,000 | $75,000 | $100,000 | $125,000 | $150,000 | $175,000 | $200,000 | $225,000 |
|---|
| 1 | $64.08 | $89.71 | $128.16 | $192.25 | $256.33 | $320.41 | $384.49 | $448.57 | $512.65 | $576.74 |
| 2 | 70.97 | 99.36 | 141.94 | 212.91 | 283.87 | 354.84 | 425.81 | 496.78 | 567.75 | 638.72 |
| 3 | 78.87 | 110.42 | 157.75 | 236.62 | 315.49 | 394.37 | 473.24 | 552.12 | 630.99 | 709.86 |
| 4 | 88.02 | 123.22 | 176.03 | 264.05 | 352.07 | 440.08 | 528.10 | 616.12 | 704.13 | 792.15 |
| 5 | 98.69 | 138.16 | 197.37 | 296.06 | 394.74 | 493.43 | 592.11 | 690.80 | 789.48 | 888.17 |
| 6 | 111.26 | 155.77 | 222.52 | 333.79 | 445.05 | 556.31 | 667.57 | 778.83 | 890.10 | 1,001.36 |
| 7 | 126.27 | 176.78 | 252.54 | 378.81 | 505.08 | 631.35 | 757.62 | 883.88 | 1,010.15 | 1,136.42 |
| 8 | 144.44 | 202.21 | 288.88 | 433.31 | 577.75 | 722.19 | 866.63 | 1,011.07 | 1,155.50 | 1,299.94 |
| 9 | 166.82 | 233.55 | 333.65 | 500.47 | 667.29 | 834.12 | 1,000.94 | 1,167.77 | 1,334.59 | 1,501.41 |
| 10 | 195.01 | 273.01 | 390.02 | 585.03 | 780.04 | 975.05 | 1,170.06 | 1,365.07 | 1,560.08 | 1,755.09 |
| 11 | 231.48 | 324.08 | 462.97 | 694.45 | 925.93 | 1,157.42 | 1,388.90 | 1,620.39 | 1,851.87 | 2,083.35 |
| 12 | 280.39 | 392.55 | 560.78 | 841.18 | 1,121.57 | 1,401.96 | 1,682.35 | 1,962.74 | 2,243.13 | 2,523.53 |
| 13 | 349.20 | 488.88 | 698.39 | 1,047.59 | 1,396.79 | 1,745.98 | 2,095.18 | 2,444.38 | 2,793.57 | 3,142.77 |
| 14 | 452.82 | 633.95 | 905.65 | 1,358.47 | 1,811.29 | 2,264.11 | 2,716.94 | 3,169.76 | 3,622.58 | 4,075.41 |
| 15 | 626.09 | 876.53 | 1,252.19 | 1,878.28 | 2,504.38 | 3,130.47 | 3,756.56 | 4,382.66 | 5,008.75 | 5,634.85 |
| Age | $25,000 | $35,000 | $50,000 | $75,000 | $100,000 | $125,000 | $150,000 | $175,000 | $200,000 | $225,000 |
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Step III. Avoid the Tax Crunch
Step IV. Choose the Right Investments
Notes:
- This return is hypothetical and for illustration only and is not indicative of the return of any particular investment. Your investment returns will vary based on economic conditions. Return
- Based on a 7% interest rate, compounded monthly, and assuming no fluctuation in value of principal. Return
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Diversified Securities Inc. 1000 Lakes Dr #420, West Covina, California 91790
Telephone (626) 919-3456 / (909) 949-3300 / (800) 365-7749 Fax (626) 919-6127
E-Mail joerubins@divsecs.com
California Insurance License Number: 0A68771
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Last update: 13 November, 2009
Copyright © 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010 by Joe Rubinstein/Diversified Securities, Inc. and CitiVU. All rights reserved.
Securities and Investment Advisory Services offered through H. Beck Inc. H. Beck, Inc. and Diversified Securities are not
affiliated. H. Beck, Inc. Member FINRA, SIPC, MFA
Joseph Rubinstein is securities registered in the following states: AZ, CA, CO, FL, GA, HI, ID, IL, ME, MT, NE, NH, NJ, NM, NV, NY, OK, OR, PA, TN, TX, VA, WA.
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