"Knowing what must be done does away with fear"- Rosa Parks
How to maximize investing for education
Be sure to save on a regular basis. And even if you can afford to make one annual contribution, you may be better off making regular monthly payments. The reason is to take advantage of a strategy called dollar cost averaging, which can help smooth out the highs and lows of investing in equities and mutual funds.
If you have at least 6 or 7 or more years until the funds are needed, be sure to take advantage of growth investment opportunities, which are your best defence against soaring tuition costs. And always keep in mind the principles of diversification and asset allocation. Contact your financial planner to discuss the risk.
Remember that even more important than how much you contribute is how much your investments earn. Over a number of years, after the compounding effect, even 1% more in earnings can make a huge difference.
Encourage your children to save as well. It’s never too early to begin and over the years those savings can really add up.
Tell friends and relatives about your educational savings programs and make sure that money the children receive as gifts go toward this purpose.
Make sure your insurance coverage has enough to cover your children education fees and that your loved ones are looked after, whatever might happen to you.