nightdesigns
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join:2002-05-31
AZ
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Re: Household Budget Epiphany
I didn't see property tax in there which is another ouch.
The only way I recently purchased a house was a lot of help from family and an early cash out on an inheritance, and then again, my Grandmother owns half of it. At some point I'll have to buy her out, but for the time being she's using it as a tax deduction.
We need to start saving for my kids college tuition now ... we don't have kids yet and won't for a few years.
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No_Strings
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1 edit | said by dogma  : Mortgage(PII&T)payment¹ - - - - - - - - - - 2,100.00
I assume the "T" to mean tax. |
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nightdesigns
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| said by No_Strings :I assume the "T" to mean tax. I stand corrected. Carry on.
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dogma
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join:2002-08-15
Boulder City, NV
| reply to nightdesigns
said by nightdesigns :We need to start saving for my kids college tuition now ... we don't have kids yet and won't for a few years. "In 20 Years the Average Private School Tuition will be just under $75,000[/year] The Average Public School Tuition will be just under $25,000[/year]"
~ »www.thinkfinancial.com/blog/stud···tuition/
For two kids in an Average Private College + room/board/ect (x 1.4%) = $840,000
Using this: »allfinancialmatters.com/Calculat···ator.htm
it estimates I will be looking at $120K to $180K each kid.
I should [have been] really be socking away $1,000/Mo ($12K/year@5%): »www.moneychimp.com/calculator/co···ator.htm
If one can come up with $840K in 18 years, or $1 Million 20...it may be a better idea to send the kid to trade school for pipe fitting or something, and create an endowment/trust fund with the $1 Mil. This would subsidize their income by about $70K/year...every year...forever. So if they make (today's dollars) $70K/yr as a pipe fitter + the trust fund = $140K/yr income. Better than most first year Ivy League MBA's...without the stress.
I can always pretend/hope/remain in utter denial that the kids will be academic or athletic scholarship material. Ah, the dream of the "full ride". However, there are plenty of unused Foundation scholarships and other financial aid at many schools. Problem is, all of the tellers at my bank have college degrees.
Has it gotten to the point that most college degrees aren't worth the paper they are printed on? |
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jig
join:2001-01-05
Hacienda Heights, CA
| the trick is to find a way to get the money to the kid without having to report it on their fafsa. that means getting it out of the parents tax returns as well.
i have no idea if these are legal or not, but:
you might be able to set up an annuity. the income from the annuity can be tax free (if the tax is paid on entry). there might be restrictions on how the payments are made (monthly vs every 2 years or something), but i think it can sneak under tax return form for the student (when they are probably filing 1040ez's).
i seem to remember there being an entry blank for income for annuities, recently, so it might not be an available path at the moment.
another way might be to create a business or foundation giving out scholarships... but those can be audited and if you are giving to a family member.... you're sunk.
anyway, the defined problem is: you have money set aside to get a child through college. you want the student to have to use the least amount of the money. reporting the money to the college means less grants, fee interest loans, and sometimes less scholarship money. so, how do you get the money to the student without having to report it to the school, yet have the money available for various costs while the student is enrolled? |
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