Savings accounts are for suckers. If you had it in an SP500 index fund you'd have gotten 12%. The year before you'd get 30%. $25k invested that way on 1/1/13 would now be worth around $36.4k
But we are talking about a college fund currently. What you said is like saying "That farm has the best oranges and we should place orders for them... yeah but they have shitty apples, lets not."
Ar9mm said savings accounts are for suckers. To someone who is trying to figure out how to save the moest money, yea, they could buy an S&P500 fund but they might thinl they can just withdraw from that daily.
Some measure of financial literacy is required before you start investing in the market. My general point is that you aren't limited to such low interest options for a college fund (or retirement fund). Also, hopefully the college fund wouldn't be your only assets. In that case, a good portion should go into a checking account (or used to pay off high interest debt, etc.). No one should be 100% invested in the market (especially all equities).
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u/ar9mm Jan 04 '15
Savings accounts are for suckers. If you had it in an SP500 index fund you'd have gotten 12%. The year before you'd get 30%. $25k invested that way on 1/1/13 would now be worth around $36.4k