Investing in your children’s future means starting early and maintaining highly secure growth assets as a staple component of the overall portfolio’s holdings. Education can be expensive, but with a great strategy for building capital over the long term and a long enough timeline (ideally the nearly two decades that reside between pregnancy or birth and the need for this funding) growing the wealth necessary to fund your child’s education can be made incredibly simple.
Start early and take advantage of compounding interest
The most important aspect of any savings and investment portfolio is the power of time. Earning value requires the input of time—on average, a stock market investment will double every seven years. This means that providing your future college student with the financial aid that he or she will need is simply a matter of saving for the long term. If you start investing when your child is still an infant, the capital invested will double nearly three times by the date it will be needed.
This is the power of compound interest, and it makes an enormous difference in the wealth generating potential of all investments. Whether saved in order to pay college counselor rates in pursuit of great information during the transition from high school to college, or for the tuition payments required by your student directly, the compound interest on your investment portfolio will take you far.
Invest in long term growth assets as a major component of your holdings strategy
Investment opportunities like index funds and ETFs are a great way to secure your portfolio’s long term stability. These asset classes track with the market and provide a unique measure of strength over the long term that can be next to impossible to access with direct stock picking investment strategies.
However, mixing stock pickings (on the NYSE) alongside a robust index investment strategy is crucial for maintaining the blend of risk that is necessary for accessing enhanced growth opportunities. While the index is fantastic for locking in stability alongside growth, it’s also limited in the upward boundaries possible as a result of the same strategic “lumping” of hundreds of assets together that make these investments so prized by those looking for hands-off investment options.
Assets like Alamos Gold provide a great option for investors looking to tackle the educational needs of their young scholar. Alamos (NYSE: AGI) is a Canadian multinational gold miner based in Toronto, Ontario. The firm operates three mines in continuous operation in North America: The Young-Davidson Mine and Island Gold Mine, both in Northern Ontario, and the Mulatos Mine in the Sonora state of Mexico. Alamos is well positioned in the gold mining industry already but has developed another series of extraction sites in the Republic of Turkey and the United States that promise to skyrocket the value of Alamos shares in the future.
The Kirazli project in the Republic of Turkey stands poised to deliver hundreds of thousands of ounces of gold at one of the lowest costs on the market per ounce. Mining licenses and natural resource extraction plans across Alamos mines are developed in accordance with environmentally friendly policies as well. Alamos has done away with the common use of cyanide in mining projects and is actively working to protect groundwaters and the waters of a nearby dam in the vicinity of each mining site.
Building an investment portfolio designed to provide your young student with the capital required to pay for future educational costs takes patience and a long vision for the future. Starting early and locking in current pricing on assets that are poised for huge growth are essential when seeking to build a nest egg or capital for future education costs. Start saving today and there will be few limits to the growth you see.
