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Buying a car in retirement

Julie C | Jul 11, 2026

"Joan, I'm not sure what you mean about checking the online price after you get the price from the salesperson ? Can you explain further? In the past I looked at the inventory online , saw the advertised price and then requested a quote. At any rate, getting 3k off a Camry is very good . Calling the AG office - well done !"

- Julie C

Fear of the Unknown…

gnussen623 | Jul 22, 2026

"It’s not surprising that so many HD readers at some point considered a second career as a financial planner. I too considered becoming a CFP. Two things stopped me: 1) I am not comfortable with sales, 2) I figured I would use simple index funds as the basis for my clients’ portfolios, and teach the client how simple investing had become, but thought no one would pay for that. Lo and behold two decades later financial planning is utilizing these types of portfolios and concentrating on the rest of financial management, not picking stocks."

- DavidHLancaster

One Person’s Luxury, Another’s Necessity

Mark Crothers | Jul 21, 2026

"Yeah, exactly my reaction when he first mentioned it. Apparently it serves a dual purpose: a relaxing beach/pool area at certain times of day, and a workout surface at others. The idea is that training on sand works your muscles harder and in different ways than solid ground."

- Mark Crothers

Lessons on the Ground

ArticleDennis Friedman | Jul 18, 2026

THE OTHER DAY, WHILE walking to my mailbox, I noticed a summer class schedule for a private gifted youth academy lying on the ground. I assumed it belonged to one of my neighbors, who has elementary-aged children. Their interest in extra academics didn't surprise me. Many families move to this area because of its excellent schools. Parents here clearly value education. On any given day, it's common to hear children practicing the piano or violin as you walk through the neighborhood. I admire parents who encourage their children to excel in school. But as I looked over that schedule, I found myself wondering about the lessons that aren't taught in a classroom. Coincidentally, another neighbor's son had just graduated from college and was preparing to begin his career. If he were my son, what advice would I give him as he stepped into adulthood? After some thought, I settled on five ideas. Invest to Build Wealth. The most reliable way for ordinary people to build wealth is to become owners instead of just consumers. Buying shares of businesses allows you to participate in the growth of the global economy rather than relying solely on a paycheck. The good news is that you don't need much money to begin. What matters most is time. Starting early allows compounding to work its magic, with investment returns generating returns of their own over many years. Be a Long-Term Investor. If I could offer only one piece of investing advice, it would be to keep things simple. Invest regularly in low-cost index funds and stay invested. Trying to pick winning stocks or predict market swings is tempting, but history suggests that patience usually beats prediction. I recently read a New York Times column by Jeff Sommer that made this point well. Long-term market returns are driven by a surprisingly small number of extraordinary companies. The problem, of course, is knowing in advance which companies those will be. Broad diversification through index funds allows investors to own tomorrow's winners without having to guess who they are. Even if you think you're smart enough to spot those superstar companies, holding onto them for the long haul is a rollercoaster. They can be incredibly volatile. I've learned that lesson firsthand. A few years ago, my wife and I bought a small position in Nvidia (NVDA). It represented only a tiny fraction of our portfolio, but the stock's wild price swings made us uncomfortable. We eventually sold our shares too early for about $112, and the last time I checked, it was trading at $204. Do I regret selling? Not really. The vast majority of our stock holdings remain in Vanguard's Total Stock Market Index Fund (VTI), which owns Nvidia along with thousands of other companies. That approach has allowed us to sleep well at night while still benefiting from the market's long-term growth. Cultivate Friendships. Money matters, but people matter even more. Looking back, some of the biggest turning points in my life came because of friends. One college friend, Chuck, helped me get my foot in the door at an aerospace company when I was a history graduate struggling to find work. That opportunity led to a rewarding career. Another friend, Steve, introduced me to the woman who became my wife. That single introduction changed the course of my life far more than any investment decision ever could. But those special bonds don’t happen by accident; they require making time for them despite a busy career. Good friends encourage us, open doors we never expected, and help us through life's inevitable setbacks. Those relationships are among the greatest investments anyone can make. Give Every Job Your Best. I learned the value of hard work from my parents. When I was growing up, my father routinely left for work before sunrise and often didn't return until evening, six days a week. At the same time, he and my mother managed a 36-unit apartment building. My mother prepared dinner for our family before leaving for her own job each morning, returning home in the evening with just enough time to spend a few quiet hours with my father before doing it all again. Watching them taught me that meaningful accomplishments usually require persistence more than brilliance. There will be phases in your life when long hours are unavoidable. During those times, give your work your best effort. A reputation for reliability and diligence has a way of creating opportunities that talent alone cannot. Protect Your Greatest Asset. For someone just beginning a career, the greatest financial asset isn't an investment account. It's the ability to earn a living. Poor health can quietly undermine that ability. Regular exercise may not seem like a financial strategy, but it helps protect the income that makes every other financial goal possible. I recently came across a quote from a doctor in the comment section of an article in The New York Times that captured this idea perfectly: "Exercise, by its effect on skeletal muscle, can in part preserve cognition, prevent depression, prevent cardiovascular disease, prevent diabetes, prevent some cancers, prevent osteoporosis, and preserve independence. And the list goes on. There isn't a single pill on earth that delivers all of those benefits." Taking care of your health isn't simply about living longer. It's about preserving your independence and giving yourself the opportunity to enjoy the life you've worked so hard to build. As I walked back from the mailbox, I hoped the child whose summer schedule I'd found would do well in every class. Academic success opens many doors. But I also hope someone teaches lessons like these along the way. Years from now, I doubt anyone will remember a report card or a test score. They'll remember the habits that shaped a life: investing patiently, working hard, nurturing friendships, and taking care of their health. Those lessons may never appear on a syllabus, but they can make all the difference. Dennis Friedman retired from Boeing Satellite Systems after a 30-year career in manufacturing. Born in Ohio, Dennis is a California transplant with a bachelor’s degree in history and an MBA. A self-described “humble investor,” he likes reading historical novels and about personal finance. Follow Dennis on X @DMFrie and check out his earlier articles

FIFA Financials

R Quinn | Jul 19, 2026

"Never spent that kind of money on a sporting event... but back in 1972 I drove my then-girlfriend, now my wife of 52 years, to Greensboro, NC, to see Elvis in Concert. Tickets were @$125 each. We were on the floor, center, 6 rows back from the stage. At the time, I was earning @$600 a month. Good investment. She married me."

- Mike Lynch

Go While You Still Can

DavidHLancaster | Jul 22, 2026

"Great article, and his website looks interesting. Thanks for sharing!"

- Dave Melick

Costa Rica: The Richest Man On The River

Andrew Clements | Jul 22, 2026

"Thank you Heidi, I really appreciate that. I'm grateful the story resonated with you"

- Andrew Clements

Will Your Death Double Your Spouse’s Tax Bill?

achnk53 | Jul 15, 2026

"Catherine, As I have written before for my pension we decided to take the annuity option. The dollar amount in my account just over 100K, so less than 10% of our portfolio, so was not a big “bet.” Also since the pension was through a hospital that also included physicians my thought was the pension fund managers certainly did their due diligence when it came to picking the insurance company. We chose the 100% survivorship ship option since it did not change the monthly payout significantly relative to our income. One of us will have to live only 11.5 years to “get our money back.” If my wife lives to 100+ (her mother died at 103+, my parents 85), that means “we” will have collected for 35 years. It seemed like the right decision and that the odds we will collect way more than our investment. I know that is not the best way look at it as during that time period we are just getting what the hospital put in, minus potential opportunity cost of not investing the money. It’s funny that even though the monthly amount is less than 1K which does not come anywhere near what we spend, my wife gets comfort knowing that money is coming in each month."

- DavidHLancaster

A discussion on health insurance, premiums, profits and such- a 50 year perspective most people don’t want to accept

R Quinn | Jul 15, 2026

"Yesterday I read that Senate Democrats have introduced a bill that will cap out of pocket expenses for traditional Medicare to $5000 annually. To me that sounds like the beginning of the end of the Medigap product but they say it will make Medigap more competitive with Medicare Advantage. What do you think ? I suspect that eventually all of Medicare will be an HMO. In my opinion ,Advantage works well until it doesn't .I have two friends much older than I and we live in a state (Mass.) known for excellent healthcare. One of them has a group Advantage plan , which presumably is better than what an individual can buy . When she needed rehab she was sent to a 1 star facility at an unreasonable distance from home. An aide dropped her and they refused to take her to the hospital so she called 911 herself . Her daughter was able to get transferred to a 3 star SNF, the highest in her Advantage network, and closer to home In contrast , my friend fwith Medigap could choose his SNF (5 star) , within easy driving distance from home so that his elderly wife could visit without difficulty."

- Julie C

A Can of Worms

Dan Smith | Jul 17, 2026

"David, I sure think that's true most of the time, still, I've seen some exceptions that just leave me scratching my head."

- DAN SMITH

K-shaped Economy

ArticleAdam M. Grossman | Jul 18, 2026

A TOPIC THAT'S been in the news recently is the so-called K-shaped economy. Imagine a chart plotting the relative standing over time of those with higher incomes and those with lower incomes. Owing to a strong stock market and rising home values, the shape of the chart for those with higher incomes would extend up and to the right and has been moving increasingly in that direction since Covid. Folks with lower incomes, on the other hand, haven’t benefited as much from rising markets. Instead, they’ve had to contend with higher prices on key budget items, including housing, tuition and healthcare. For this group, unfortunately, a chart of their financial progress would extend down and to the right. Put these two charts together, and they form a K—hence, the K-shaped economy. Because this divide has been especially pronounced for young people, more parents are asking how they can help their children. But they aren’t always sure of the best way to approach this. You may have heard the story about the late Charlie Munger. Some years ago, a friend asked Charlie if he planned to leave his considerable fortune to his children. Specifically, his friend wondered whether too much wealth would impact his children’s work ethic. “Of course it will,” Munger replied. “But you still have to do it.” “Why?” his friend asked. “Because if you don’t give them the money, they’ll hate you.” On the one hand, this is funny, but it also gets at why this topic can be so difficult. In fact, I’ve often referred to it as the hardest question in personal finance. But it isn’t impossible. If you’d like to help your children—either today or as part of your estate—here are four questions I suggest considering as you develop your plan. 1. What problem are you most trying to solve? Some families are clear that they just want to help their children as much as they can today, to combat the challenges of the K-shaped economy. Other families are focused on the long term and just want to see their assets pass to their children tax-efficiently at the end of their lives. Both are reasonable objectives, but it’s important to have clarity on what’s most important to you as the first step. 2. To what degree do you value simplicity over tax savings? With the federal estate tax at 40%—and many states levying their own taxes on top of that—folks with assets above the lifetime exclusion often conclude that it’s worth spending virtually any amount on legal fees in an effort to defray that tax. But not everyone agrees. Other families see it this way: While estate planning strategies can be effective in reducing taxes, they can be costly to set up and to maintain. For that reason, other families decide to spend little or nothing on estate tax strategies. They accept that their estates might—and likely will—end up facing a larger tab at the end of the day. But, they argue, if their estate is large enough for the estate tax to apply, then by definition, their heirs will nonetheless still receive a significant sum. 3. Do you worry about the problem Munger’s friend highlighted? If you’re worried about impacting your children’s work ethic, then counterintuitively, it may make sense to start making gifts sooner rather than later. The key is to make modest gifts and to make them incrementally. When you start making gifts like this sooner, it can serve two purposes. As a parent, it gives you the opportunity to see how your children handle these smaller sums. Do they immediately head to Bora Bora, or do they save and invest the dollars they receive? Making gifts incrementally can also help the recipient. To the extent that the first—or the second—gift is spent frivolously, modest gifts provide children the opportunity to acclimate and hopefully to adjust. 4. To what degree would you like to control your children’s use of assets down the road? If you go the route of an irrevocable trust and plan to leave assets to your children as a bequest, you won’t have the opportunity to iterate in the way I described above. That said, you may still prefer to leave assets to your children in this way. The key challenge with trusts is how to structure the distribution provisions. Put too many restrictions in place, and you risk causing your children a lifetime of stress or, worse yet, resentment. But put too few restrictions in, and the trust assets could be spent unwisely and deplete too quickly. How can you thread the needle? There’s no single right approach, but here are four distribution strategies you might consider. Based on age or stage: You might stipulate, for example, that a child reach age 30 before receiving any funds. Or you might require that a child have finished college or be married before receiving funds. The benefit of this approach is that it doesn’t leave room for debate between your children and the trustee. The downside is that this sort of structure can be too rigid, because children’s needs don’t always align with specific ages or stages. The reality is that everyone takes different paths through life in ways that no formula can fully contemplate. I often reference the movie The Bachelor, which is a comedy but illustrates how an overly rigid structure can have unintended consequences. Annual percentage with no discretion: This structure also has the benefit of being straightforward, with no room for debate between beneficiaries and the trustee. In addition, a fixed percentage can help preserve a trust’s assets for many years. The downside is that children’s needs typically vary from year to year. They’ll want to buy homes and may have tuition expenses for their own children. For those reasons, a fixed percentage, while attractive in theory, runs the risk of being an obstacle to your children’s most important goals. Annual percentage with an override for specific needs: The benefit of this structure is that it provides flexibility if a child wants to buy a home or has other higher-than-normal expenses in a particular year. The downside is that it opens the door to debate between beneficiary and trustee. The trustee might deem a proposed home purchase too expensive, for example. Trustee’s discretion: A final approach is to leave distributions entirely up to the trustee. That’s the most flexible but also the most potentially fraught. If a trustee and a beneficiary don’t get along, this setup would give the trustee wide latitude to make the beneficiary’s life miserable for decades. No distribution structure is perfect, but it’s for this reason that I tend to recommend against this approach, common as it is. Adam M. Grossman is the founder of Mayport, a fixed-fee wealth management firm. Sign up for Adam's Daily Ideas email, follow him on X @AdamMGrossman and check out his earlier articles.

Many seniors think we paid for our Social Security benefits based on the FICA taxes we paid. Let’s dispel that myth- we didn’t

R Quinn | Jun 15, 2026

"It wouldn’t even have to be eliminated. Given data analytics today, it would be possible to track via tax returns spouses, young children, disabled children household income etc. SS tax could be modified to account for various life circumstances. There’s no need for one size fits all these days."

- Marilyn Lavin

Buying a car in retirement

Julie C | Jul 11, 2026

- Julie C

Fear of the Unknown…

gnussen623 | Jul 22, 2026

- DavidHLancaster

One Person’s Luxury, Another’s Necessity

Mark Crothers | Jul 21, 2026

- Mark Crothers

Lessons on the Ground

ArticleDennis Friedman | Jul 18, 2026

FIFA Financials

R Quinn | Jul 19, 2026

- Mike Lynch

Go While You Still Can

DavidHLancaster | Jul 22, 2026

"Great article, and his website looks interesting. Thanks for sharing!"

- Dave Melick

Costa Rica: The Richest Man On The River

Andrew Clements | Jul 22, 2026

"Thank you Heidi, I really appreciate that. I'm grateful the story resonated with you"

- Andrew Clements

Will Your Death Double Your Spouse’s Tax Bill?

achnk53 | Jul 15, 2026

- DavidHLancaster

A discussion on health insurance, premiums, profits and such- a 50 year perspective most people don’t want to accept

R Quinn | Jul 15, 2026

- Julie C

Manifesto

Jul 22, 2026

NO. 11: A REGULAR paycheck allows us to save, service debt and take stock market risk. But we should also protect that paycheck with health—and perhaps also life and disability—insurance.

act

Jul 22, 2026

OPEN A ROTH IRA for your teenagers. Have they been mowing lawns or scooping ice cream this summer? If they have earned income, they’re eligible for a Roth, which you could fund solely out of your pocket or with help from them. At their modest tax rate, the Roth’s tax-free growth will likely prove more valuable than a traditional IRA’s initial tax deduction.

Truths

Jul 21, 2026

NO. 9: BIG SALARY increases, especially late in your career, can make it harder to retire. As your paycheck grows, you’ll likely raise your standard of living. That means you now need a larger nest egg to sustain that lifestyle in retirement. The problem: You were likely previously saving as though you were looking to replicate a more modest lifestyle.

humans

Jul 20, 2026

NO. 72: WE ENJOY working hard. We tell ourselves, “I just want time to relax,” and yet relaxation doesn’t satisfy us for long and we quickly grow restless. We should keep this in mind as we ponder retirement. Contrary to what we imagine, we get great pleasure from working, especially work we’re passionate about and that gives us a sense of purpose.

Money Guide

Manifesto

Jul 22, 2026

NO. 11: A REGULAR paycheck allows us to save, service debt and take stock market risk. But we should also protect that paycheck with health—and perhaps also life and disability—insurance.

Spotlight: College

The Student Trap

Logan Murray | Feb 1, 2022

NOT ALL DEBT IS created equal—and that’s especially true when it comes to student loans.
For the vast majority of debt, we can calculate the ongoing monthly payment if we know the interest rate, number of payment periods, current balance and if the payment is due at the beginning or end of the period. But for federal student loans, we may need to know one more variable: the borrower’s discretionary income.
With federal student loans,

Ranking Colleges

Greg Spears | Sep 30, 2024

I’VE TAUGHT BEHAVIORAL economics, which holds that even our most important decisions are influenced by unrecognized biases. For my students, there’s no better example than the choice of where they went to college.
Although the cost is enormous, the decision of where to go hinges on the smallest things. A teenager who says, “I want to be close to my boyfriend,” will zero in on a nearby college, even if her high school romance is fading.

Strings Attached

Adam M. Grossman | Dec 24, 2023

WITH NO DISRESPECT TO our representatives in Congress, a new rule taking effect in January reminds me of a scene from The Jerk, an old Steve Martin movie. Playing the role of a carnival huckster, Martin shows off a wall of attractive prizes, but then narrows the choices to an impossibly small set of options.
Congress did something similar when it instituted a new rule governing 529 education savings accounts. The rule in question opens up greater flexibility in how surplus 529 funds can be used.

Eyeing College

Mike Zaccardi | May 30, 2022

INVESTING FOR education costs has never been more popular, as evidenced by recent Morningstar data. The research company found that 2021 was a record-breaking year for assets in 529 college savings plans. At almost $500 billion, total investments are up nearly fourfold over the past decade.
A big reason is the tax advantages—investments grow tax-free if they’re used for qualifying education expenses—plus 529 accounts are treated relatively leniently under the college financial-aid formulas. You can learn more about the accounts from other authors who have real life experience saving through 529 plans.

Are top private colleges worth the cost?

Jonathan Clements | Apr 12, 2021

Degrees of Doubt: When Higher Education Misses the Mark

Mark Crothers | Jul 16, 2025

I perhaps have a contrarian view of the utility of some higher education courses. This opinion has developed over the last 20 years or so, talking and interacting with younger staff I employed within my past business. Degree courses seem to have somewhat transformed into a business model, more influenced by volume over suitability of the course and proper weight being given to the future earning and retirement outcome expectations the course will achieve.
To use a fishing analogy,

Back on Target

Kyle McIntosh | Jun 29, 2022

AS A COLLEGE professor, there are a few times during the year when things quiet down. During these lulls, I take on tasks that have moved to the bottom of the to-do list. The items include things like doctor’s appointments, home repairs and portfolio rebalancing. I can hear my students’ reaction: “But professor, you teach us about investing in companies and you write about investing. Why do you drop your portfolio review to the bottom of the list?” Valid question. I find reviewing our portfolio to be tedious. Also, the ultimate output of the process—shift some percent of our portfolio from investment A to investment B—doesn’t get my juices flowing. I’d rather read company financial statements and debate valuations. But I know that regular rebalancing is necessary, so I do it a few times a year. Here’s the process I follow. We have almost all our money at a single brokerage firm, Schwab, but it’s still a manual process to summarize our positions across our nine accounts. This may sound like too many accounts, but all of them have a specific purpose. Beyond our standard brokerage account, my wife and I both have rollover and Roth IRA accounts. We also have custodial and 529 accounts for our two children. I haven’t found a way on Schwab.com to generate a report on our combined accounts, given the different Social Security numbers involved. Instead, I lean on my Excel skills to summarize the data. To our Schwab data, I add the positions from our employer-sponsored defined contribution plans. Once I’ve got all the information downloaded, I categorize each investment as U.S. stocks, international stocks, bonds and cash. Once I do this, I use a “SUMIF” formula in Excel to determine the market value for each category. The final step is to calculate…

College Math

Kyle McIntosh | Nov 22, 2021

WHAT’S THE REAL PRICE? In September, I wrote about the potential tab for sending our first child to college in 2025. The four-year cost was estimated at anywhere from $65,000 to $430,000, depending on the college chosen. This wild disparity led me to conclude that college financial planning was like saving to buy a car—when you don’t know if you’ll drive off the lot in a Honda or a Lamborghini. Since then, I’ve tried to put a sharper pencil to college costs. I had the help of an expert on student financial aid, who advised me to complete the Federal Student Aid Estimator. This government calculator yields your expected family contribution, or EFC. This is the annual amount families are expected to pay for tuition, room and board, books and other college costs. To get apples-to-apples comparisons, I used the following factors in all my calculations: Family size: four, with one child entering college. Annual income: two adults making $120,000 combined. Non-retirement investment accounts: $250,000. Home value: $500,000 with a $350,000 mortgage. Student performance: top 15% in grades, as well as SAT and ACT test scores. When I plugged these factors into the Federal Student Aid Estimator, it said the expected family contribution would be $36,000 per year. If you assume a student will borrow $5,500 to $7,500 per year—the federal direct loan limits—then the family would have to pay roughly $30,000 a year for college. That’s a steep price. It represents 25% of the hypothetical family’s annual pre-tax income. Or, if paid from savings, four years of college costs would eat up nearly half their $250,000 in non-retirement investments. To get a more precise estimate, I was advised by my college-finance expert to try the net price calculators available on the websites of all U.S. colleges. These calculators offer a…

Best/worst deals at Costco

Kyle Mcintosh | Jul 14, 2024

This past week, Costco announced that it would raise its base membership fee from $60 to $65 effective September 1. Executive members will see their fees increase from $120 to $130. Prior to this announcement, fees had not changed since 2017. In order to justify the cost of the membership, members need to extract value from Costco in excess of the fee they pay. What are your tips for making the most of your membership? Or what do you avoid that's better to purchase somewhere else?

Buckeye Burglar

Kyle McIntosh | Nov 8, 2021

“DEAR OHIOAN: According to our records, you have applied for and/or received pandemic unemployment benefits.” As I haven’t been to Ohio in more than 20 years, I knew something was amiss. It was highly likely I was the victim of identify fraud. After some investigation, I found out someone had been receiving unemployment benefits in my name since March 2021. I’m hardly the only person victimized by this fraud. In a recent report, Ohio Auditor Keith Faber estimated that $3.8 billion in fraudulent unemployment payments and overpayments had been made since March 2020. The fraud has been so widespread that claims have been made in the names Ohio’s governor and lieutenant governor. To prevent further fraud, I reported the matter to the state of Ohio. Initially, I was skittish about filing the fraud report online because I had to provide my Social Security number, but I figured the online system was the safest way to report the fraud—and certainly better than giving my personal information over the phone, which had backfired on me before. Next, I reviewed my credit report to ensure that no one had parlayed my personal information into an even bigger fraud. Fortunately, there was no unusual credit activity. But because someone obviously had my personal information, I decided I’d better monitor my credit activity more closely. I chatted with a colleague about available services, and ended up selecting the Complete ID service offered by Costco. Costco partners with Experian to provide members with credit monitoring, identity protection and restoration services, which now costs me $8.99 a month. I also pay another $2.99 a month to have my two children’s information monitored.

Shifting Gears (II)

Kyle McIntosh | Aug 3, 2021

I LEFT MY CORPORATE job a year ago to start a second career in higher education. At the time, I offered five pieces of advice to those considering a similar change. That advice included creating a plan with your family, giving your desired new career a test drive and taking advantage of deferred compensation plans. A year into my new career change, here are four additional tips: 1. Estimate the point of no return. Last year, I urged people—once they had found their passion and done an adequate amount of planning—to “just do it.” While I still think it’s important not to procrastinate unnecessarily, I’ve also come to believe it’s prudent for career changers to ask colleagues and recruiters, “How long can I be away from my current career before I limit my ability to return?” If the consensus answer is that opting to leave for even a short time will make it hard to return, you may want to be slower to change careers, so you have extra time to chew over the decision. If you decide not to change right away, consider whether there are ways to incorporate elements of your desired career into your existing role or if you could take classes to prepare for your next job. 2. Consider the credentials you’ll need. When I made my shift to higher education, my goal was to spend most of my time teaching, coaching and mentoring students. While I’ve been successful in hitting that goal, I sense that I’ll soon want to expand my focus. The issue I face: My credentials may not meet the minimum qualifications for certain leadership roles. While I knew this coming in, I probably should have spent more time exploring the necessary qualifications for advancement in higher education. If professional credentials or further…

What’s the Price?

Kyle McIntosh | Sep 29, 2021

DRIVE TO HOSPITAL. Cut the umbilical cord. Figure out names. Open a 529. While the primary focus upon our two babies’ births was bonding, I had another item to check off: I opened a 529 college savings account for each one within a month of their births. It’s paid off handsomely. Through automatic monthly contributions—plus stellar market performance over the past decade—they’ve amassed sizable balances for higher education. One child now is in high school, the other is a middle-schooler. Based on what we’ve already accumulated, I’m considering pausing future contributions to their 529s. Why? At this point, I see two likely scenarios: We’ll either overfund our 529s—or we’ll wind up with a serious shortfall. I know that sounds confusing, but it all depends on which colleges they attend. To decide whether to continue contributing, I’ve been researching what their colleges might cost. And the answers I’ve found are confounding. Unlike most other areas of financial planning, college presents parents like us with a staggering range of possible costs. For example, the average cost for four years of public college is now about $105,000 for in-state students. The comparable cost for a private college is $220,000, according to EducationData.org. These figures include room and board. If either child decides to attend a local community college for the first two years—a viable option in our area—the four-year cost could drop to around $65,000. I consider myself to be well-versed in financial planning and higher education. After all, I’m a college professor. Still, the incredible disparity in average college costs leaves me surprised. Just to make it more difficult, these figures I’m quoting are averages. Many schools’ published prices are much, much higher. The full cost for football rivals Notre Dame and the University of Southern California (USC) in 2021-22 are $58,843 and…

Buying a car in retirement

Fear of the Unknown…

One Person’s Luxury, Another’s Necessity

Lessons on the Ground

FIFA Financials

Go While You Still Can

Costa Rica: The Richest Man On The River

Will Your Death Double Your Spouse’s Tax Bill?

A discussion on health insurance, premiums, profits and such- a 50 year perspective most people don’t want to accept

A Can of Worms

K-shaped Economy

Many seniors think we paid for our Social Security benefits based on the FICA taxes we paid. Let’s dispel that myth- we didn’t

Buying a car in retirement

Fear of the Unknown…

One Person’s Luxury, Another’s Necessity

Lessons on the Ground

FIFA Financials

Go While You Still Can

Costa Rica: The Richest Man On The River

Will Your Death Double Your Spouse’s Tax Bill?

A discussion on health insurance, premiums, profits and such- a 50 year perspective most people don’t want to accept

Free Newsletter

Get Educated

Manifesto

act

Truths

humans

Money Guide

Manifesto

Spotlight: College

The Student Trap

Ranking Colleges

Strings Attached

Eyeing College

Are top private colleges worth the cost?

Degrees of Doubt: When Higher Education Misses the Mark

Spotlight: Mcintosh

Back on Target

College Math

Best/worst deals at Costco

Buckeye Burglar

Shifting Gears (II)

What’s the Price?