In accumulating funds for college, one of the first questions a family will face is, “Where do we invest the money?” Many financial professional will recommend that money for college be placed in relatively low-risk investments. If there is a long enough time frame, the savings may be placed initially in higher risk (and potentially higher return) investments. As the time for college gets closer, the funds can be shifted into more conservative choices.

The ultimate decision will depend on a range of factors such as the number of years until college begins, the amount of money available to invest, a family’s income tax bracket, risk tolerance, and investment experience. A few of the more traditional approaches are Savings accounts, Tax-free municipal bonds, U.S. Treasury securities, Growth stocks and Growth Mutual funds.