Ismail BhaiJournal

By Ismail Bhai, Dallas, Texas

Ismail Bhai believes education is the surest investment a family can make. Like any investment, it works best with a plan, and a plan works best when it is protected.

Start early

Time is the most powerful tool a saver has. Even modest monthly contributions, started when a child is young, can grow substantially by the time college arrives.

Use the right account

529 college savings plans allow investments to grow tax-free when used for qualified education expenses. Texas offers its own plans, and families can use plans from other states as well. A tax professional can help choose.

Protect the plan

The biggest risk to an education plan is not the stock market; it is the loss of a parent's income. Term life insurance and disability insurance are designed for exactly that risk. Ismail Bhai explains how to think about coverage at ismailbhaiinsurance.com.

Involve the children

Older children can understand the plan, contribute part-time earnings and learn the habits of saving. That is an education in itself.

Review every year

Revisit the plan each year: contributions, investments and insurance coverage. Small adjustments made early prevent large problems later.