Reply to Sidwell tuition increase

Forum Index » Private & Independent Schools

Reply to "Sidwell tuition increase"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]So I was doing a rough calculation just for fun.
Let's assume scenario 1 where your child enters 1st grade (7yo) and you pay $40K in tuition that increases 3.75% annually.  By the time s/he graduates, you would have paid about $592K in tuition.  
 
Let's assume scenario 2 where you don't send your child to private school and invest each year's tuition in the stock market.  Let's assume the market returns 8% each year.  By the time s/he graduates high school, you would have $906K.  Now, let's assume you continue to invest that $906K with a return of 8% so that you have a retirement fund saved for your child.  By the time your child is 65yo, s/he would have $33M.  That's a lot of money.  If the return on investment is a 10%, the amount at 65yo is a whopping $89M!  [/quote]

The kid would have to pay gift or estate taxes on most of that. My kids each get get max tax free gift allowed ($28k) per year. They should also have several million at retirement and a great education, neither of which they have to pay inheritance tax on. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics