|
| ||
 Investment Professionals Access Account Open Account Fund PerformanceRetirement |
||
| Webcasts Press Center Forms and Prospectus About the AdvisorFrank Talk |
||
| Children & Investing |
|
Education IRA
So just how are you going to invest for your children or grandchildren’s future? |
|
The current economic slowdown does not seem to have slowed the spending habits of the
U.S. population at all, but investing may be the first casualty.
Spending rises with income Although it’s general knowledge that the savings rate in the United States is the lowest among industrialized nations, the most recent Federal personal income and outlay study really drives the point home. Although both personal income and disposable income increased 0.2 percent after increases of 0.2 percent and 0.3 percent, respectively, personal spending has not dropped. Despite the economic slowdown, spending increased 0.5 percent in April and stayed at that level in May. Saving for college now If, indeed, investing is the first casualty, will saving for your children’s future suffer too? According to Census Bureau statistics, 69 percent of all postsecondary students worked part-time and another eight percent worked full-time. Thus, 77 percent of all students past high school worked. Also, 47 percent of full-time postsecondary students were still dependent on their parents. But since 2000, personal saving as a percentage of income has been negative. The nation’s personal savings rate was -.1 percent in 2000, –1.1 percent in May of 2001, after dropping to –1.0 in April. It’s important to begin investing now. What may be doom and gloom to others may be an opportunity for you and your children. There’s probably a longer time horizon on your possible investment because it’s for your children. Historically, stocks have outperformed other investments. Yet the broader markets all are on a downward trend, as are U.S. stock funds. But they gained 8.51 percent on average in the second quarter of 2001, according to statistics from Lipper Inc., quoted by Standard & Poor’s. Consider one of U.S. Global Investors’ 13 no-load mutual funds as a starting point. You can get started with just $100 in some of our funds through the ABC Investment Plan® . Visit us at www.usfunds.com or call 1-800-US-FUNDS for more information on Education Individual Retirement Accounts (see New tax law gives boost to the Education IRA), UGMA/UTMA custodial accounts and tools that can help you get started. |
| A program of regular investing doesn’t assure a profit or protect against a loss in a declining market. You should evaluate your ability to continue in such a program in view of the possibility that you may have to redeem fund shares in periods of declining share prices as well as periods of rising prices. |
|
