Will Paying for College Ruin Your Retirement?

Covid-19 has exposed the College Crisis. Years of price increases, lack of ROI and many students stuck in low paying jobs even with a college degree!

If you have kids, you have probably wondered “How are we going to pay for college?” The costs and consequences have never been higher. Tuition is up over 300% in the last 30 years. The labor market is more demanding than ever. A college graduate with an in-demand major will earn 83% more than a HS graduate and will go on to earn millions more over their lifetime. However, if you pick a soft major and end up taking jobs that don’t require a 4 year degree or 2 year degree, you can be saddled with loans and debt without the high paying job to justify a solid ROI.

Parents: don’t sacrifice your retirement to pay for college. You can get loans for college, but you can’t get loans for retirement. Start saving early and have a plan. Schedule a meeting with us if you need help. You don’t need to pay an advisor 1% for a 529 plan!  We don’t charge anything for 529’s!

1. College pricing is negotiable!  It is a business and there is data to help you get a fair price.
2. Focus on Merit scholarships.  Some schools give high merit money and will be very close to the total price of in-state schools.
3.  “Reach schools” = paying full price
4. Encourage your student to always be asking themselves — “Why am I going to college?”
5. Your academic major is THE MOST IMPORTANT DECISION.

If you would like to become a client, we help families plan for college & a secure retirement.  Please book a free 2nd opinion below.

We have free tools and resources to help. Sign up for our blog to get these free resources (2 page checklist – What should I consider to fund my child’s college education and 25 page pdf with links– college to career planning).

• What are the capabilities & interests of the student?
• What are the financial realities for the family?
• The Academic major is THE MOST IMPORTANT DECISION. Don’t get a 4 year degree to get a 2 year degree job or HS job.
• Think of college as an investment, because it is. Focus on ROI (return on investment). Many students take 5 years to finish college.  College ROI data for school & major
• The end goal of your college investment is a higher paying job, in a growing field and the ability to be self-sufficient, invest, pay loans, start a family and more.

If you live in Colorado, you don’t need to pay an Advisor 1% to save for your child’s education. College is already expensive enough. Check out the College Invest 529 direct portfolio – https://www.collegeinvest.org/529-savings-plans/direct-portfolio/ — Use the low-cost Vanguard investments.

Look at the file IIA College to Career Planning and the checklist for more details. Let us know if we can help.

All the best,

Todd

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