<p>how do kids afford paying for ivies, privates, etc... are the ones that get admitted all that rich?</p>
<p>No, not every one who gets into an ivy is rich. For the most part they are need blind and they meet 100% of your demonstated need with a pretty decent amountof grant aid (does not have to be repaid) in your package.</p>
<p>Now the rick is demonstrated need, because the school determines your need as far as what your family can afford to pay.</p>
<p>Or....the student does his best to get max merit aid, takes out max in Stafford Loans, parents take out Plus loans...most everyone has variations in 'creative financing'.</p>
<p>do the ivies require families to complete the fafsa.........and do they base their need based aid on the fafsa?</p>
<p>Most selective college use both the FAFSA and the CSS Profile, as well as some additional criteria of their own.</p>
<p>or you can go to one of your "safeties" and get a nice merit award</p>
<p>they apply to schools and submit whatever financial aid forms those schools require..</p>
<p>then they pick a school they gives them the best financial aid package..
-you pay as much as you can
-they give you grants which is basically thousands of free money you don't need to pay back
-you get loans to help pay if off (theres interest of course)
-if you really need a lot of money some kids are given part time jobs on campus</p>
<p>ROR= rate of return.</p>
<p>At your birth: $15,000, plus $100/mn until 18 years old, at 10% ROR= $150,627.Total investment $21,600.</p>
<p>At birth: $20,000, plus $50/mn until 18 years old, at 10%ROR=$150,372. Total investment $30,800.</p>
<p>For every $1000 at birth, invested at 10% ROR= $6,004 at age 18. At 21 = $8,052.
For every $1000 at birth, invested at 12% ROR= $8,578 at age 18. At 21 = $12,274.</p>
<p>Do you see how it works?
If you only you were potty trained sooner, and if you didn't use so many disposables... </p>
<p>Real question: When you have your kids, What are you going to do?</p>
<p>That's a great idea, and one my parents suggested. But not every set of young parents has and extra $50-100 per month, let alone the initial $15-20K. I sure wish we could have done this, though!</p>
<p>How do I pay for my education?</p>
<p>Lots of loans. Years of paying off loans. C'est la vie.</p>
<p>Actually, paying off parents' loans is one of the roadblocks to beginning early savings for children. It's a viscious cycle.</p>
<p>529 plans from grandparents. That generation as a whole is absolutely loaded. They can give $11,000 a year to each kid (I think it goes up to $12,000 a year this year), and they can give up to 5 years at once. That means that two grandparents can supply $110,000 for each grandchild. Many people in that generation are sitting on a huge wad of cash in their houses. This is one way they can gift it to others tax free.</p>
<p>
[Quote]
ROR= rate of return.
For every $1000 at birth, invested at 10% ROR= $6,004 at age 18. At 21 = $8,052.
For every $1000 at birth, invested at 12% ROR= $8,578 at age 18. At 21 = $12,274.
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</p>
<p>Please advise how to predictably get 10-12% ROR. Do those calculations take into account taxes?</p>
<p>You cant reliably get 10% - the long term gain of the S&P 500 is 8%, then you take off taxes and also factor in that you better not be invested in the stock market in the 5 years preceding needing the money at least and you are looking at a much lower rate of return - probably 5-6%. Then allow for the fact that the cost of attending college has historically risen by twice the rate of inflation.</p>
<p>The bottom line is that your return is not likely to even meet the rise in tuition. That is why tuition prepayment plans can be good moves.</p>
<h1>13. A somewhat active management and close attention to tax gains and tax loses. Predictability-Its that the lack of predictability that allows for gains, ... and loses. Yes, does take in taxes, but taxes are still being deferred on some of the investments.</h1>
<h1>14 Statements of facts are too general. How about if you invested on 01/01/2002 (or any other time in 2002) in any index you want, and looked at the results today.</h1>
<p>The bottom line, is either you invest or you are looking at the alternative of loans with a historical rate much higher than you may truly want or afford. It has worked for us but we spend time and effort to efficiently use money. We realize that most people haven't the inclination to undertake asset management. </p>
<p>Prepayment programs may work. It didn't work for us because it wasn't around when we needed it and when it did get around to our state, it had limited options. Risk management.</p>
<p>Once there was a guy who was working at the main office of a regional bank. First one in and last one to leave. Working a somewhat important job but definitely, not appreciated. Doing the work of two people (he replaced those two which he didn't know at the time). Underpaid as he also found out later. </p>
<p>While working at this very tedious job he thought about how to make money-more money. He made a little throught problem concerning money beyond the money needed to meet current needs. What do people do with this extra money? 1. Spend it. Which will instantly make extra money into no extra money, therefore no need for concern for this problem. 2. Save it in the bank and get interest- get paid for renting the money. 3. This bank also had stock purchase program for employees. The bank was paying its owners a dividend, equal to its shortterm CD's but without the minimum amount. </p>
<p>Which would make money; 1, 2, or 3? Which is predictable? Which would give the most control to the owner? What do most people do?</p>
<p>GL</p>
<p>When she first started with them, my wife's company offered a stock purchase plan which allowed employees to buy the stock at a discount from a set market price. We purchased as much as we could and did very well (enough to pay tuition). Unfortunately, they changed the employee benefit to offering options at no cost a few years ago. So there's probably about 5,000 options in her account at a price $10 OVER the current market price. So the answer is that it depends on how the company does. If an employee enrolled in Enron's stock purchase program, they're SOL.</p>
<p>
[Quote]
How about if you invested on 01/01/2002 (or any other time in 2002) in any index you want, and looked at the results today.
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</p>
<p>How about if you started in 2000?</p>
<p>ITstoo much said "#13. A somewhat active management and close attention to tax gains and tax loses. Predictability-Its that the lack of predictability that allows for gains, ... and loses. Yes, does take in taxes, but taxes are still being deferred on some of the investments"</p>
<p>8% rate long term is the historical rate for the S&P 500. 85% of the actively managed mutual funds out there cannot beat the S&P 500 - it takes a little more that active management.</p>
<p>The market is a gamble and options are an even bigger gamble. Gambling is ok do long as you dont plan on winning all the time. If you dont want to gamble with your college tuition chances then a more conservative approach is necessary, especially in the last few years before college. If you are going to college this year then you should not have been putting it into stocks in 2002 any more than you should be taking it to the race track.</p>
<p>If you really do the math it is clear that you cannot even keep up with tuition inflation - currently at 7-12% (after taxes) with any reasonable investment strategy. College is getting more and more difficult to afford each year no matter how you invest. Investing wisely can reduce the pain however.</p>
<p>Do what my son did, go to a reasonably priced state school (4-year college or university) for the first two years. Once you decide what your major/career field is, and you have a better sense of what type of school you want, scout around for the appropriate school, "Ivy" or otherwise, and then transfer. This assumes that you will perform very well academically during your first two years of college. He saved us a boatload of money that way. He will be getting his degree from the second school at a fraction of the cost.</p>