Savings accounts, CDs, and money market funds are relatively safe ways to save for college, but the potential for growth is very limited. The Federal Deposit Insurance Corporation insures CDs and bank savings accounts at FDIC-insured institutions for up to $250,000 per depositor, per institution. CDs generally provide a fixed rate of return. To increase performance potential over time, you might choose to invest in stocks, bonds, and mutual funds. With thousands of mutual funds available, you should be able to find funds that are appropriate for your time frame and investment objectives. The return and principal value of stocks, bonds, and mutual fund shares fluctuate with changes inmarket conditions. Shares, when sold, may be worthmore or less than their original cost. Bonds are subject to interest-rate, inflation, and credit risks. As interest rates rise, bond prices typically fall. If not held to maturity, bonds may be worthmore or less than their original cost. A bond fund’s performance can be affected by the risks associated with the underlying bonds in the fund. Money market funds are neither insured nor guaranteed by the FDIC or any other government agency. Although a money market fund attempts to maintain a stable $1 share price, you can lose money by investing in such a fund. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. Families reported paying $28,026, on average, for college in the 2022–23 school year. Source: Sallie Mae, 2023
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