|Domestic Stock||Foreign Stock||Bonds||Short-Term||Highest 12-mo return||Lowest 12-mo return||Historical Average Annual Return|
|Conservative||20%||-||50 %||30 %||31.06 %||-17.67 %||6.16 %|
|Balanced||45%||5%||40 %||10 %||76.57 %||-40.64 %||8.18 %|
|Growth||60%||10%||25 %||5 %||109.55 %||-52.92 %||9.23 %|
|70%||15%||15 %||-||136.07 %||-60.78 %||9.94 %|
Source: Fidelity's Stages magazine
For students: 529 college savings plans
- Any earnings are accumulated on a tax-deferred basis
- As long as the money is used for qualified higher education expenses, you don't pay federal income tax when you withdraw the money.
- Better than a savings account, Coverdell Education Savings Account (ESA), UTMA (uniform transfers to minors account) and UGMA (uniform gift to minors account) in most cases.
- You can go to college in any state that offers the plan.
- Up to $300,000 can be contributed (as opposed to just $2,000 for a Coverdell ESA).
Joseph Hurley's books