What is the power of an early start?
One of the most important factors in reaching your college savings goals is to start saving early. As the chart below indicates, the power of compounding can help an account grow faster. Even if you are starting your savings program a little late, investing in a tax- advantaged account can help reduce your future college debt.
*This hypothetical example illustrates the future value of different lump-sum investments and a regular $200 monthly investment for different periods of time and assumes an annual effective investment return of 8% compounded monthly. This hypothetical does not reflect an actual investment or reflect any taxes, fees, or expenses. If taxes, fees, or expenses had been deducted, performance would have been lower. This hypothetical is not indented to predict or project investment performance. Unit price and return will vary. Periodic investment plans do not ensure a profit and do not protect against a loss in a declining market. Past performance is no guarantee of future results. Total gifts to an individual that exceed the annual deferral exclusionary amount may be subject to federal gift taxes.
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