This calculator is intended to serve as an educational tool and all results shown are hypothetical, based on the information you provide.
Definitions
Age of children The current age of your children. This calculator is based on your children beginning their college education at age 18. The difference between their current age and 18 is the number of years you have to save.
Annual tuition The current estimated cost of one year of tuition and books. This amount should be per child and be specific to the school they may be interested in attending. The average published costs of college, for the 2007-08 school year, including tuition, room and board, books, supplies, transportation and other personal expenses, as reported by the College Board:
U.S. Undergraduate College Costs for 2007-08 School Year Source: College Board's 2007 Trends in College Pricing, www.collegeboard.com
Type
Tuition
Room & Board
Total
Change from 2004-05
Public 4-Year (in-state tuition)
$6,185
$7,404
$13,589
5.9%
Public 4-Year (out-of-state tuition)
$16,640
$7,404
$24,044
5.4%
Private 4-Year
$23,712
$8,595
$32,307
5.9%
For the purposes of this calculator all expenses are assumed to be due at the end of the year.
Room and board The current estimated cost of one-year room and board. Like tuition and books, this amount should be per child and specific to the school they may be interested in attending. For the purposes of this calculator, all expenses are assumed to be due at the end of the year.
Education cost inflation This is the percentage that you expect educational costs to increase per year. Data provided by The College Board's "Trends in College Pricing 2007" put tuition, room and board increases at approximately 6.4% per year, for the last ten years.
Current amount The total amount you currently have saved for your child's (or children's) education.
Monthly contributions The dollar amount you plan to save per month toward your child's (or children's) education. All amounts are assumed to be added to your account at the beginning of the month.
Rate of return This is the annually compounded rate of return you expect from your investments. This will also be the rate used if you end up with a negative balance, and need to borrow money to meet your goal. The actual rate of return is largely dependant on the type of investments you select. From January 1970 to December 2007, the average compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 11.4% per year (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, and the lowest was -39%. Savings accounts at a bank can pay as little as 1% or less.
It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.
This calculator is intended to serve as an
educational tool and all results shown are hypothetical, based on the
information you provide. These results do not represent the performance of any
Van Kampen product. Keep in mind that all investing involves a certain degree of
risk and therefore you could lose money on your investments. Additionally,
investments offering high rates of return also involve a higher degree of risk
to principal and rates of return will vary over time. When comparing asset
allocation strategies to your personal financial situation, you should consider
your time frame and all of your personal savings and investments, in addition to
your retirement assets and risk tolerance level. Your financial advisor can help
you assess your individual situation before you make any decisions.
Additionally, keep in mind your circumstances will probably change over time, so
you should periodically review your investment strategy with your financial
advisor to be sure it continues to fit your situation. Van Kampen does not offer
tax or investment advice. Please consult a qualified tax or financial advisor
regarding your individual situation.
Please consider the investment objectives, risks, charges and expenses of the
fund(s) carefully before investing. The prospectus contains this and other
information about the fund(s). To obtain a prospectus, contact your
financial advisor or download and/or
order. Please read the prospectus
carefully before investing.
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Guaranteed—May Lose Value
Not Insured By Any Federal Government Agency—Not A Deposit
