Today, Oct. 8th, is the day that automatic PFD drafts begin filling up bank accounts across the great state of Alaska. Yahoo! Thus, it’s time to revisit (yet again) saving for college. Here is the original post regarding savings options. I won’t re-hash these options this time around. Just take a peek if you’re interested. In order to attempt to entice you to save those kiddo’s PFD’s (where possible) for their college/future/retirement, here are a few future value scenarios (conservative):

  • $1,300 (this year’s PFD) invested for a 5 year old at an average interest rate of 8% will become approximately $3,500 by their 18th birthday
  • $1,300 plus an additional annual investment of $200 (just a small chunk of a PFD) at 8% will become approximately $8,000 by their 18th birthday
  • $1,300 plus an additional annual investment of $500 at 8% will become approximately $15,000 by their high school graduation

And finally:

  • $1,300 plus an additional annual investment of $1,000 (a conservative PFD estimate) at 8% will become approximately $26,000 by the time they’re ready to leave the nest.

Interested? Check out the original post on savings vehicles here. Also, savingforcollege.com by Bankrate has great information. You can see our own future/college savings choices here. We’ve chosen to utilize both a conservative 529 plan and a UGMA/UTMA to cover all our bases in case the boys choose to forego the typical college route. Jimmy’s account (with a lot of help from Grampy the financial guru) was timed just right to maximize the low performing stock market and his initial investment gained 50% last year. Whoa. That will be extremely atypical but I’m thankful nonetheless! Poor Jacob won’t be able to get into the action until next year (when we’ve saved enough of his PFDs to begin the initial $2,500 investment Fidelity requires). Too bad little man šŸ™‚

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