On average, skipping college and investing tuition costs nets a higher return
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Re: On average, skipping college and investing tuition costs nets a higher return
#2[deleted]
Re: On average, skipping college and investing tuition costs nets a higher return
#3I'd like to hear Mr. Money Mustache's take on this.
Re: On average, skipping college and investing tuition costs nets a higher return
#4[deleted]
Re: On average, skipping college and investing tuition costs nets a higher return
#5I'd like to hear Mr. Money Mustache's take on this.
Forget MMM, Jack Bogle and Warren Buffett are the ones to ask, and I'm pretty sure they'd agree.
(Warren Buffett needs no intro, Jack Bogle founded Vanguard Investments)
EDIT: Autocorrect fail. Fixed. Thanks!
Re: On average, skipping college and investing tuition costs nets a higher return
#6How do you skip college and invest the tuition in the S&P 500?
Ah, you can't: Of course, lenders won't give out large loans for an individual to skip college and dump tuition into the stock market, this is just a hypothetical scenario.
So this article is unrealistic.
Re: On average, skipping college and investing tuition costs nets a higher return
#7No mention of discount rate? I don't think wages appreciate competitively with the stock market, so time preference strongly biases this.
Re: On average, skipping college and investing tuition costs nets a higher return
#8How do you skip college and invest the tuition in the S&P 500? Ah, you can't: Of course, lenders won't give out large loans for an individual to skip college and dump tuition into the stock market, this is just a hypothetical scenario. So this article is unrealistic.
If your parents were going to pay for your college you could do this.
Re: On average, skipping college and investing tuition costs nets a higher return
#9> Only ~10% of the ~1250 colleges listed on Payscale generate an average ROI higher than the 7.1% generated by foregoing college and investing that money
Most of anything is not great by definition :)
It's all really funny when schools like 42 are free (42 is a private university in France)
Re: On average, skipping college and investing tuition costs nets a higher return
#10This article doesn't explain why we should believe that stockmarket performance, going forward, will be anything like the S&P's performance from 1993 to now.
It's also not clear why we should believe the Payscale College ROI figures. I clicked around a bunch and couldn't find any description of their actual methodology for computing it. In particular, before we can take it seriously we need to know how well they've done at estimating the true counterfactual earnings of people who could have gone to University X but did not. And that's really hard to do! (Without multiple universes handy)