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On average, skipping college and investing tuition costs nets a higher return

erikrood.com

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Re: On average, skipping college and investing tuition costs nets a higher return

#231

Earlier quoted context omitted.

> So, ... what the f@@@ did you do at college that you are calling it a "waste"? I think your mistake is in assuming that your experience is typical.

Out of the 100 or so people I know my experience is very typical.

But the 100 people you would know would be biased towards Math grads, and less towards English or Environment majors, right? Survivorship bias means you would be less likely to be in touch with collage drop-outs.

Re: On average, skipping college and investing tuition costs nets a higher return

#233
The post make a good observation but shouldn't be taken as advice.

For one, the majority of people will take out a loan to fund their studies. They do not have cash laying around to invest.

Second, a very minority of the population, especially when young, has the patience and rigor it takes to be invested through the tantrums of the market over a long period.

Third, past performance is not a guarantee of future returns.

Re: On average, skipping college and investing tuition costs nets a higher return

#234
The down side of this is that most kids are spending money they don't actually have - the loans are for college only, so investing it isn't an option.

I'm personally very grateful that I was able to graduate without any debt. Things that helped me included:

* Starting at a community college (2 years @ ~$3k/yr) then switching to a state school (3 years @ ~$10k/yr)

* Grants and scholarships that paid for around 1/3 of my costs

* Money from my parents (~$2k)

* Freelancing at $45/hr+

* Getting married (because the government stopped counting my parents money against me, and so I was eligible for more grant money)

Re: On average, skipping college and investing tuition costs nets a higher return

#235
post #87
post #55

Earlier quoted context omitted.

I'm in university right now, and the reason why I'm here is mainly so that I can get a degree in order to get hired for a job in the field I want. My parents probably got me into it beacuse of the appeal of classical education but also the fact that they want me to get a job, too. Is there any solution to getting a job without a degree? Especially in those technical subjects such as electronic engineering (what I'm d…

I've interviewed many people for starting position in software. I've looked at their degree only if there's literally nothing else to look at, and even then it wasn't a major sign. I've seen many people with degrees that are useless, and many people who were very skilled and who I don't even know whether they have a degree and what it is worth. It goes like this: 1. Experience 2. Experience 3. Experience 4. Knowledge…

How might one get experience? For example, I want to try programming for a client, but I don't even know where to find such a thing. I've programmed for a while by myself, but I have no connections. And to get experience, many companies want you to have experience, so that becomes a catch-22. This is why I viewed having a degree as having a foot in the door, as it were.

Re: On average, skipping college and investing tuition costs nets a higher return

#236

Earlier quoted context omitted.

What about... offering college for free like the rest of the modern world? Then you would only have to worry about living costs and those loans are pretty small. I could pay off mine in like 4-5 years if I really wanted to. Plus, then people still could get an education even if their parents didn't save up for you. What about as a society/culture you start telling people that the country should offer education for fr…

>What about... offering college for free like the rest of the modern world? Paying for tution with tax money doesn't make it free. If you aren't willing to invest in yourself, why should society do so? Free college tuition is a waste of resources on the upper middle class.

If you saddle people with debt that can't be discharged, they're less able to take risks that may end up producing major benefits for society. Instead, they're driven to compete for safe positions that have a smaller potential upside. This results in less innovation, and it also depresses wages for people in the safe positions. Besides making the lives of people who are already low on the totem pole worse, this depression of wages for safe jobs can ultimately lead to a greater reliance on government assistance. The only winner is large established corporations who profit from cheap labor and fear disruptive innovation.

Re: On average, skipping college and investing tuition costs nets a higher return

#238
post #83

Earlier quoted context omitted.

like the rest of the modern world Many countries outside of Europe have tuition fees. Do we really have to label those countries as not part of the modern world?

Free higher education and universal healthcare seems like reasonable criteria for "modern". Throw in use of the metric system for good measure(s).

That's some kind of ideology. The term modern is recognized as something positive, and then beeing used as an argument. I would argue developed countries are also modern.

Re: On average, skipping college and investing tuition costs nets a higher return

#240
post #62

Earlier quoted context omitted.

College is not "free" in the "modern world" whatever that means.

Obviously I was wrong, but it is free in many european countries. Payed for by tax payers. The same tax payers that once enjoyed a free education.

Minus the ones which went to US and other countries with lower taxes.
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