Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Historically, higher rates of return have been associated with higher degrees of risk.
According to the College Board, the annual cost for tuition, room, board, and fees at 4-year public colleges averages $21,370 for in-state students in the 2018-2019 academic year. At 4-year private colleges, these costs average $48,510.
Financial aid may be available to students and parents seeking to fund a child's education. Many awards are not needs-based. In the 2017-2018 academic year, the average financial aid per full-time student was estimated to be $14,790, of which $4,510 was estimated to be in the form of federal loans, according to the College Board.
If the IRA holder turns 70½ this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.