Justin's note: Today, instead of our usual market commentary, we're doing something special.
I recently sat down again with Casey Research founder Doug Casey to discuss a troubling trend: the fast-rising cost of a college education.
Read our conversation below to see why Doug says relying on—and paying for—today's educational paradigm "makes as much sense as entering a Model T Ford in the 24 Hours of Le Mans"…Justin:
Doug, I recently had an interesting conversation with my sister. She told me that her financial advisor suggested she start setting aside $500 to $1,000 a month to pay for her son’s college education. That’s because a four-year college education is apparently going to cost between $400,000 and $500,000 18 years from now.
Her advisor clearly arrived at this figure based on how fast college tuition costs have been rising, which is about 6% per year based on my research.
But you have to wonder if the cost can keep rising at this rate. It seems to me that no one will go to college if it’s going to cost a half-million bucks.
What do you make of this trend?
Doug: Well, the first thing—my advice to your sister is to get a new financial advisor. I fear that she’s relying on a complete imbecile. She should fire him immediately, and for a number of reasons.
More @ Casey Research
Financial advisors were saying the same thing 20 years ago too. The point of a financial advisor is to get you to give them your money to play with. Saving for college plays well against women customers. Saving for retirement plays well with men. But the fact is, If you have that much to save, it doesn't matter what you do with it, you will do just fine.
ReplyDeleteWell said.
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