College funds

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irvinehusky

irvinehusky

New member
I'm going to print this out for my kids.  :P
http://money.msn.com/debt-management/8-extreme-ways-to-avoid-college-debt

My wife always was seriously looking at #9, studying abroad, for much less.  I don't know if it'll change by the time my kids go to college but top Japanese universities are eager to get foreign students.  And, the requirements for foreign students are lower for this.  She really thinks our kids can get into Tokyo University (Their version of Harvard).  LOL.
 
Irvine Valley College for my kids... then transfer to UCI. Those 4-5 years will cost the same as the 4-5 years we sent them to private pre/elem.

All Irvine, all the time.
 
Since it looks like everyone here is starting to purchase Irvine homes, in 7 to 10 years, we'll all have so much equity, we'll be able to tap into the home equity ATM and pay for our kids' college and more.  :P
 
irvinehusky said:
Heavens, how will you face your neighbors (whose kids will all be going to Ivies) each morning?  :P
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I'll just post them up and shoot a left hand hook in their face.

At least I'll see my kids more often... once your kids are grown and have their own jobs, you might see less of them, so I want to keep them around as much as I can.

And who knows if I'll still be around by the time they graduate college (yeah... I'm so morbid).

Plus, that equity... it's going to a beachfront single-level condo when we downsize (the Irvine house will be passed down to the first kid who has a family).
 
I agree with irvinehomeowner.  My philosophy is if my kids wont get into Stanford, UCLA, UC Berkeley, they are off to IVC or Santa Monica College and then transfer to a UC. 

No way I am paying for Pepperdine or Chapman...or some other private school.

USC is a "maybe" - only if they get into a film school I would consider.
 
Did anyone elses parent's consider anything lower than UCSD a failure??

I remember my dad telling me to not even bother applying to any other UC's besides UCB/LA/SD.  I mentioned Cal State and he slapped me hahahahaha... Do parents nowadays still feel this way??

 
Homer_Simpson said:
qwerty said:
my parents thought any college was a success.
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I should have probably directed my question toward Asians only huh?? LOL...
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yeah that would make your poll more accurate. leave me and the white folk out of it. :-)
 
im with IHO, i wont put any pressure on my daughter when she is of age. all that after school tutoring, weekend chinese classes, etc are insane.  we will just make sure she marries rich.
 
I think if you're "Americanized" (whatever that means), you are more balanced in your expectations. But if you were born abroad, you have a higher bar set for your kids.

It would be nice for my kids to be very successful financially, but if you're not happy doing what you're doing, it's just money (did I say that?).

I'm only worried this might backfire and my kids might not work to their potential... so I don't want them to be lazy. A relative of mine is like that... can do so much more but prefers not to work and just live off their spouse.
 
qwerty said:
im with IHO, i wont put any pressure on my daughter when she is of age. all that after school tutoring, weekend chinese classes, etc are insane.  we will just make sure she marries rich.
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I heard there's a popular major in USC called "trophy wife" and their motto is:

A successful man is one who makes more money than his wife can spend. A successful woman is one who can find such a man. :)


 
lnc said:
qwerty said:
im with IHO, i wont put any pressure on my daughter when she is of age. all that after school tutoring, weekend chinese classes, etc are insane.  we will just make sure she marries rich.
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I heard there's a popular major in USC called "trophy wife" and their motto is:

A successful man is one who makes more money than his wife can spend. A successful woman is one who can find such a man. :)
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well that does it for me, she will be attending SC in 17 years.
 
irvinehomeowner said:
And who knows if I'll still be around by the time they graduate college (yeah... I'm so morbid).
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Whaaaaaaaat?!!?!!! Iho!! No. Just no. You can do this.
 
Owning a home in Irvine just pretty much eliminate all grants and financial aid assistance for college. UC runs about $34k. Private colleges are around $60k. Even though you may be tight on your budget colleges expect the parents to tap into home equity. So far I have not seen Irvine college bound students receiving any financial aids. I suggest starting a college fund now if your kids are still young. Don't get caught when the time comes if your kids miraculously get in to a top college but must stay locally like iVC or Cal States Fullerton to make ends meet.

IrvineRenter discovered numerous homes in Irvine changed hand between family members or relatives sharing the same surnames. This is one trick to hide your properties and be poor living in Irvine.
 
Here's another way to secure college fund.  Found it in another site.  Its kind of extreme but quite brilliant.

There's no incentive to save for college anymore.

The financial aid process absolutely punishes anyone who has any actual assets to pay for college. The system is basically an asset tax under the guise of "here's what you can afford to pay". If you have assets, you get reamed at 20-25% / year. (It's only 5%/year for 529 plan assets, but that's still a tax.) If you have no assets, you can get aid (aka a price reduction), and if you can't get aid you can still borrow the money at low rates.

401K and IRA savings are immune to financial persecution. Home equity is safe under the FAFSA system (mainly public schools) but not the Profile (more elite) schools. So it makes more sense to stash income in a 401K, bargain for a lower sticker price, and then hope that the 401K money earns more than the interest on the student loans.

If you've got bright kids or are aiming for a private school, you're better off not paying off your mortgage early, because home equity gets taxed at like 20%/year as well.
If you've got income, that's effectively taxed too, at 25%, so if you're in a high-tax state you can go from the 25% or 30% federal bracket, through a 9% state income tax and 9% sales tax, and toss in another 25% in "college tuition cost increase" tax, and watch yourself paying what is effectively a 75% marginal tax rate. It's even worse than living in Europe...

You could rephrase the way colleges are priced as "from each according to his ability, to each according to his need", and watch Marx and Lenin smile, except that their spirits have seen how that system fails, and this one is failing as well.

The Wisdom Seeker plan for paying for college (especially for second-income parents):
1) Save for college tuition only by way of a 401K or IRA
2) Minimize home equity (store up savings in the 401K/IRA instead of as home equity)
3) Quit working about 2 years before your oldest goes to college, to show little income on the student aid forms.
4) Reap effective income of $15-60K/year per child in the form of scholarships and tuition reductions for each child.
5) Live off 401K or IRA while students are in college. The 10% penalty tax might be the only tax you pay!
6) Resume working and saving for retirement after the kids finish college and the financial aid office no longer has a death grip on your ability to accumulate wealth.
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http://www.hoocoodanode.org/node/20560
 
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