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Developing a Funding Strategy

Your Pre-Funding Strategy Depends upon where You Are Now

You just brought the baby home from the hospital and you decide to start a monthly investment program to fund four years of college costs at $30,000 per year (in today's dollars). You'll need to save $585 per month through your child's senior year in college to pay the $120,000 cost (this assumes a 5% inflation rate and a 7% investment earnings rate).

Suppose your child is ten years old and you haven't saved anything yet... now you'll need to save $984 per month to fund the $120,000.

If your child starts college in one year and you haven't done any pre-funding, you'll need to save at least $2,175 per month through their senior year of college to fund the $120,000 for the four years. That's more than double what you would have needed if you started saving when your child was ten. That's why we recommend you begin a monthly funding program as early as possible.

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Osaic and First Commonwealth Bank are not affiliated. Products and services made available through Osaic are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

*We do not provide tax advice. Consult your tax advisor.
*Diversification is a method of controlling risk. It does not assure a profit or the avoidance of loss.
**Dollar-cost averaging is a method of controlling risk. It does not assure a profit or the avoidance of loss. Investors should consider their ability to continue a dollar-cost averaging program in periods of declining markets.


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