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re: College Savings questions for those living the reality now
Posted on 6/1/22 at 6:59 pm to concrete_tiger
Posted on 6/1/22 at 6:59 pm to concrete_tiger
quote:
Others here are more knowledgeable, but here's what I know
- if you get a scholarship, you are able to withdraw that amount without penalty (you still pay taxes)
- we can move the unused portion to our other kids
- we can withdraw with penalty
Buy a condo or apartment near campus.
Use the 529 to pay your kid's "rent" based on the schools on campus living cost.
Pay off the condo with 529 money over the course of a couple kids.
My parents did this when I was at school. At the time I thought they were awesome for letting me live for free in a dumpy condo off bright side.
2 kids and 8 years later and they are sitting on a 6 figure property investment that they got for free...
Oh yeah they have gotten rent from at least 1, sometimes 2 roommates a year @ 600/month for the whole 8 years, all while the 529 paid the mortgage.
1
Posted on 6/1/22 at 8:18 pm to baseballmind1212
In reality, and in the long run, schools don’t matter and honestly grades don’t that much either. What’s the person called the graduates at the bottom of their class in medical school? A doctor.
You have to be smart and find a niche that has a shortage of workers on the horizon. And go full blast for that field. Be good at what you do, network well and hop jobs the first 10 years to build up your salary. Sorry just the reality of the new work world.
If you’re comparing state schools to Ivy League schools, sure there is some difference. I just don’t see how me attended Duke or so other school would give me a life much better than I have now without the added stress or time away from my family aka working 24/7 on Wall Street. At some point the money just isn’t worth it. Life is short.
I’m a C student that went to LSU for 6+ years. Worked three years and got my exec mba (2 nights a week for 3 years - none of this 10 month MBA bulkshit that’s out there now). I’m in the financial industry pulling in $250-$300k a year.
I’m all for the college experience, but college isn’t what it used to be. Hard to tell an 18 year old that, but no matter what the letters say on the front, the goal is to save as much as you can, get the most money you can for whatever school, get in and get out asap without damaging your long term financial picture.
Yes it sucks arse
You have to be smart and find a niche that has a shortage of workers on the horizon. And go full blast for that field. Be good at what you do, network well and hop jobs the first 10 years to build up your salary. Sorry just the reality of the new work world.
If you’re comparing state schools to Ivy League schools, sure there is some difference. I just don’t see how me attended Duke or so other school would give me a life much better than I have now without the added stress or time away from my family aka working 24/7 on Wall Street. At some point the money just isn’t worth it. Life is short.
I’m a C student that went to LSU for 6+ years. Worked three years and got my exec mba (2 nights a week for 3 years - none of this 10 month MBA bulkshit that’s out there now). I’m in the financial industry pulling in $250-$300k a year.
I’m all for the college experience, but college isn’t what it used to be. Hard to tell an 18 year old that, but no matter what the letters say on the front, the goal is to save as much as you can, get the most money you can for whatever school, get in and get out asap without damaging your long term financial picture.
Yes it sucks arse
Posted on 6/1/22 at 9:19 pm to winston1970
quote:
As an LSU grad that has moved out of state I would send my kids to La Tech if we still lived in LA. Pretty good school and I would feel better about them living in Ruston as opposed to Baton Rouge while attending college.
This would be my suggestion also. Ruston would be a safe place to be young and dumb. Plus, the school has some name recognition in quite a few fields.
Posted on 6/1/22 at 9:43 pm to DiscountedCashFlow
quote:Harvard and similar elite-level schools offer needs-based financial aid -- if you get in they will provide the money (they think) you need.
If your kids can get into an ivy, it's 100% worth it even if you get no financial aid.
Military academies are liable to continue to be 100% taxpayer-funded.
Posted on 6/1/22 at 10:28 pm to DiscountedCashFlow
I would assume yall require them to have certain degrees if not a masters, not just a degree. To be in a investment position?
If not I would be curious to what you do and who for.
If not I would be curious to what you do and who for.
Posted on 6/1/22 at 11:19 pm to Im4datigers
quote:
I’m a C student that went to LSU for 6+ years. Worked three years and got my exec mba (2 nights a week for 3 years - none of this 10 month MBA bulk shite that’s out there now). I’m in the financial industry pulling in $250-$300k a year.
I got to disagree.
The 7 fund managers at the fund I'm at made approximately $16 million between them. That's approximately $2.25 million per partner.
There's just no way someone with an average degree will be able to claw their way into an investment seat here. It's just not possible - clients don't like it if hires don't have some pedigree.
quote:
If you’re comparing state schools to Ivy League schools, sure there is some difference. I just don’t see how me attended Duke or so other school would give me a life much better than I have now without the added stress or time away from my family aka working 24/7 on Wall Street. At some point the money just isn’t worth it. Life is short.
I mean that's fair.
You've got to enjoy things.
I get really, really bored at home so I enjoy spending time away from the home.
Posted on 6/1/22 at 11:24 pm to GREENHEAD22
quote:
I would assume yall require them to have certain degrees if not a masters, not just a degree. To be in a investment position?
My firm goes crazy for the CFA so they make every employee including the non-investment-staff to do it.
quote:
If not I would be curious to what you do and who for.
No masters degree but I do want to go get my MBA. Firm doesn't particularly care about the MBA - they just want me to do the CFA.
They love the CFA for some dumb reason.
Posted on 6/2/22 at 8:00 am to DiscountedCashFlow
quote:
The 7 fund managers at the fund I'm at made approximately $16 million between them. That's approximately $2.25 million per partner.
Don’t disagree, but I guess my point is you can still have a very nice (white collar job) and life just going to a regular school with average grades.
As I’m almost 50, I now fully realize the song is right - mo money, mo problems. I’d bet half those guys pulling in $2mm plus are miserable in life but just a guess.
Posted on 6/2/22 at 8:56 am to DiscountedCashFlow
You are in Louisiana?
Posted on 6/2/22 at 9:29 am to GREENHEAD22
quote:
You are in Louisiana?
Nowhere near.
At the moment, I'm in London.
Posted on 6/2/22 at 9:47 am to DiscountedCashFlow
Okay that's what I was making sure of, there are not any investment firms in LA much less ones with guys pulling 7 figures.
You had me intrigued about your company taking people without finance specific degrees. I want to switch industries and have been interested in finance but there is nothing in the south outside of Atlanta and then you still need to have a financial degree with background.
If yall have an office in CO, TX, TN, or LA and need someone with a background in O&G and project management let me know. I will get my CFA btw.
This post was edited on 6/2/22 at 9:54 am
Posted on 6/2/22 at 10:05 am to GREENHEAD22
quote:
finance but there is nothing in the south outside of Atlanta
That's not true at all
Posted on 6/2/22 at 10:12 am to Mingo Was His NameO
Yea I guess that was probably traditionally, I am sure DFW and Houston have some now as well and any similar size markets.
Posted on 6/2/22 at 10:28 am to I Love Bama
quote:
Don't forget that these kids are growing up in a different world than we did.
My brother learned coding for free online/youtube and makes $250,000 a year. No degree.
I won't say what I make but it is a silly number and my degree is not worth the paper it is printed on.
The world has changed.
THIS! So true!
Posted on 6/3/22 at 12:08 am to concrete_tiger
We're just starting to save for our little man since he is only 7 months old. We put in $350 a month into his account. $750 so far. That's $750 more than I was ever given for college. We use LA Start program.
Rough calculations based on average 6%, looking at $125,000 for when he starts college.
He'll have the benefit of having his Dad knowing that unless it's Ivy league, the quality of education at middle tier universities are all about the same for undergrad. No sense going into mountains of debt for State college.
Ideally, LSU or ULL for undergrad with TOPs, then if he does well, he can spend the majority of the nut we saved on a great Grad or Professional school.
Going into debt for an undergrad degree is always a losing proposition. Your earnings just aren't that great getting started outside a few select fields.
If he can't make his education work with $125,000 without going into debt, then I question whether he is even college material with that kind of decision making.
But here is what's important to me: he will never know he has it until after he graduates high school.
I want him to work hard and perform without knowing his parents gave him a safety net. I refuse to raise an entitled child.
Rough calculations based on average 6%, looking at $125,000 for when he starts college.
He'll have the benefit of having his Dad knowing that unless it's Ivy league, the quality of education at middle tier universities are all about the same for undergrad. No sense going into mountains of debt for State college.
Ideally, LSU or ULL for undergrad with TOPs, then if he does well, he can spend the majority of the nut we saved on a great Grad or Professional school.
Going into debt for an undergrad degree is always a losing proposition. Your earnings just aren't that great getting started outside a few select fields.
If he can't make his education work with $125,000 without going into debt, then I question whether he is even college material with that kind of decision making.
But here is what's important to me: he will never know he has it until after he graduates high school.
I want him to work hard and perform without knowing his parents gave him a safety net. I refuse to raise an entitled child.
This post was edited on 6/3/22 at 12:09 am
Posted on 6/3/22 at 10:44 am to concrete_tiger
I go a little unconventional for college savings and intend to use our family HSA as much as possible. I contribute the max deduction every year - $7300 for a family in 2022 - and then never use those funds. I save all medical receipts - doctor/dentist bills, prescriptions, over the counter meds, glasses/contacts, first aid supplies... The CARES Act allowed A LOT more items as HSA eligible than previously were allowed. List of eligible expenses
I save all those receipts and track them in a spreadsheet so I can reimburse myself for them later. I then invest the money in my HSA, primarily in "safe" mutual funds/ETFs and dividend stocks, but I've got a few risky stocks that I believe have good potential to pay off big within the next 5-15 years.
My reasoning for this is that HSAs, along with retirement accounts, are not counted as parental assets when filling out the FAFSA, while traditional college savings vehicles like 529s are. So it can reduce the expected family contribution by showing less assets available to pay for college. So for example if I have $50k in a 529, the FAFSA will calculate all of that money as available to spend on my kid's college. If that same $50k is in my HSA, it doesn't show as available because it's my retirement asset. I can reimburse myself in 2036 for my son's braces in 2030, his daily Zyrtec for 10 years, his MRI in 2021, etc and that money won't be taxed, nor will it count as income for FAFSA purposes. I'm not saving myself out of eligibility for any need-based aid.
This link breaks down the concept. Not my blog, but this is pretty much exactly how I do it.
I save all those receipts and track them in a spreadsheet so I can reimburse myself for them later. I then invest the money in my HSA, primarily in "safe" mutual funds/ETFs and dividend stocks, but I've got a few risky stocks that I believe have good potential to pay off big within the next 5-15 years.
My reasoning for this is that HSAs, along with retirement accounts, are not counted as parental assets when filling out the FAFSA, while traditional college savings vehicles like 529s are. So it can reduce the expected family contribution by showing less assets available to pay for college. So for example if I have $50k in a 529, the FAFSA will calculate all of that money as available to spend on my kid's college. If that same $50k is in my HSA, it doesn't show as available because it's my retirement asset. I can reimburse myself in 2036 for my son's braces in 2030, his daily Zyrtec for 10 years, his MRI in 2021, etc and that money won't be taxed, nor will it count as income for FAFSA purposes. I'm not saving myself out of eligibility for any need-based aid.
This link breaks down the concept. Not my blog, but this is pretty much exactly how I do it.
Posted on 6/3/22 at 12:50 pm to Lightning
What do you need FAFSA for if you're not trying to get federal money- student loans?
Seems like a cumbersome proposition and collection. Hanging on to receipts for 18 years seems unlikely and a pain in the butt.
My child will likely get TOPS and as a white kid, probably nothing else the way things are trending.
Seems like a cumbersome proposition and collection. Hanging on to receipts for 18 years seems unlikely and a pain in the butt.
My child will likely get TOPS and as a white kid, probably nothing else the way things are trending.
This post was edited on 6/3/22 at 12:52 pm
Posted on 6/3/22 at 12:55 pm to Mingo Was His NameO
quote:
What do you mean by this?
LSU and LaTech focus all energy on the 4.0 30s ACT student and give little focus on a 3.6 kid with a 28 ACT.
If I had it to do all over again, my kids would be in Ruston but I would be better aware of scholarships and student jobs.
Posted on 6/3/22 at 1:02 pm to KillTheGophers
quote:
LSU and LaTech focus all energy on the 4.0 30s ACT student and give little focus on a 3.6 kid with a 28 ACT.
How many of the students do you think there are?
Posted on 6/3/22 at 1:43 pm to DiamondDog
quote:
What do you need FAFSA for if you're not trying to get federal money- student loans?
Seems like a cumbersome proposition and collection. Hanging on to receipts for 18 years seems unlikely and a pain in the butt.
My child will likely get TOPS and as a white kid, probably nothing else the way things are trending.
That's the point, I AM trying to get federal (or state) money. Grants, in the unlikely event that they are available to my kid, or loans to review what our options would be if we chose to go that route. Most schools also require you fill out FAFSA if you want to be eligible for any need or merit based funding from the school itself.
Your child will have to either fill out the TOPS application or fill out the FAFSA anyway in order to get TOPS. Might as well do one application that covers TOPS and all other potential aid.
As for cumbersome, I guess it could be seen that way but I already do this anyway because my HSA will also be part of retirement plan. I've just made it part of my routine, any HSA expense incurred, I just snap a pic of the receipt and upload it to my spreadsheet, then throw the paper receipt into a file folder full of them. Reconcile the whole thing every year at tax time.
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