Comments on: Question of the Day – Paying for College http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: chris http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-316720 chris Sat, 31 May 2008 18:45:54 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-316720 Hi, I managed to get a full athletic scholarship with advice from this book. <a href="http://www.winningasportsscholarship.com" rel="nofollow">Winning a Sports Scholarship</a> I highly recommend reading the book and following his advice. Hi,

I managed to get a full athletic scholarship with advice from this book.

Winning a Sports Scholarship

I highly recommend reading the book and following his advice.

]]> By: Financial Journal » Blog Archive » Should You Include Your University’s Endowment in Your Will? http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-315660 Financial Journal » Blog Archive » Should You Include Your University’s Endowment in Your Will? Thu, 29 May 2008 11:51:55 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-315660 [...] She makes a good point. At $35 billion, does Harvard really need more gifts? Long time readers of this blog already know my thoughts on this topic so there’s no need to rehash an old post. [...] [...] She makes a good point. At $35 billion, does Harvard really need more gifts? Long time readers of this blog already know my thoughts on this topic so there’s no need to rehash an old post. [...]

]]> By: Should You Include Your University’s Endowment in Your Will? | AllFinancialMatters http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-315333 Should You Include Your University’s Endowment in Your Will? | AllFinancialMatters Wed, 28 May 2008 04:51:47 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-315333 [...] She makes a good point. At $35 billion, does Harvard really need more gifts? Long time readers of this blog already know my thoughts on this topic so there’s no need to rehash an old post. [...] [...] She makes a good point. At $35 billion, does Harvard really need more gifts? Long time readers of this blog already know my thoughts on this topic so there’s no need to rehash an old post. [...]

]]> By: fivecentnickel.com http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-183431 fivecentnickel.com Mon, 03 Dec 2007 02:54:39 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-183431 Yeah, that's pretty good growth relative to the payout. Who knows, maybe they're trying to build it to the point that anyone who is admitted can go there for free, or something like that. Yeah, that’s pretty good growth relative to the payout. Who knows, maybe they’re trying to build it to the point that anyone who is admitted can go there for free, or something like that.

]]> By: JLP http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-183179 JLP Sun, 02 Dec 2007 18:56:01 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-183179 No, I'm not recommending more government regulation. I just think endowments could be less stingy with their payouts - especially when you consider that over the last 10 years, Harvard's endowment has grown 15% per year and they spent 5% per year. Like I said in the post, this is my opinion. No, I’m not recommending more government regulation. I just think endowments could be less stingy with their payouts – especially when you consider that over the last 10 years, Harvard’s endowment has grown 15% per year and they spent 5% per year.

Like I said in the post, this is my opinion.

]]> By: fivecentnickel.com http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-182809 fivecentnickel.com Sun, 02 Dec 2007 01:35:49 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-182809 Are you really advocating some sort of government intervention or regulation? That's what your question sounds like, but it seems very out of character for you. Are you really advocating some sort of government intervention or regulation? That’s what your question sounds like, but it seems very out of character for you.

]]> By: Dave http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-181805 Dave Fri, 30 Nov 2007 00:32:16 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-181805 A few years ago, I contributed some highly appreciated stock to my alma mater and established an endowed merit scholarship for the purpose of attracting highly qualified students into the department I graduated from, with instructions that the university is to manage my scholarship account so that it lasts in perpetuity. To accomplish this, the university invests in a balanced portfolio (approximately 60% stocks and 40% bonds) and pays out 4.5% of the monthly average of the fund balance, rounded to a "nice number." They have been doing this with other people's money for a long time, and told me that it works out well. Over the 10 years or so that my fund has been in existence, its value has fallen some years and grown some years, but on average, the scholarship award roughly keeps up with inflation. I'm satisfied that they are fulfilling my purpose for donating the funds and managing it to last a long, long time. A few years ago, I contributed some highly appreciated stock to my alma mater and established an endowed merit scholarship for the purpose of attracting highly qualified students into the department I graduated from, with instructions that the university is to manage my scholarship account so that it lasts in perpetuity. To accomplish this, the university invests in a balanced portfolio (approximately 60% stocks and 40% bonds) and pays out 4.5% of the monthly average of the fund balance, rounded to a “nice number.” They have been doing this with other people’s money for a long time, and told me that it works out well. Over the 10 years or so that my fund has been in existence, its value has fallen some years and grown some years, but on average, the scholarship award roughly keeps up with inflation. I’m satisfied that they are fulfilling my purpose for donating the funds and managing it to last a long, long time.

]]> By: Andy http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-181784 Andy Fri, 30 Nov 2007 00:02:26 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-181784 Inflation in college costs is around 10%/yr currently. That means that spending 5% requires a 15% ROR so that the money won't run out. Seems that they are being product. Inflation in college costs is around 10%/yr currently. That means that spending 5% requires a 15% ROR so that the money won’t run out.

Seems that they are being product.

]]> By: Sam http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-181754 Sam Thu, 29 Nov 2007 23:16:45 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-181754 An endowment is like a 401k or an IRA, so 4 to 5% seems reasonable. I don't know enough about these university endowments to know whether they are tax exempt, but would think that if they are just accumulating funds and not spending at least 4-5% then they should lose any tax exemption. An endowment is like a 401k or an IRA, so 4 to 5% seems reasonable. I don’t know enough about these university endowments to know whether they are tax exempt, but would think that if they are just accumulating funds and not spending at least 4-5% then they should lose any tax exemption.

]]> By: Nick http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/comment-page-1/#comment-181689 Nick Thu, 29 Nov 2007 21:44:44 +0000 http://allfinancialmatters.com/2007/11/29/question-of-the-day-paying-for-college/#comment-181689 Take a look at the rate of returns now for these schools year to date. I would bet that they are down a bit. How would you do this for a string of negative years, and does this lead to bad economy = bad schools? Let the school run its own endowment as it sees fit. The school can balance the spend vs invest argument from intro to economics. Regulation would serve no point but to enrich bureaucrats. Take a look at the rate of returns now for these schools year to date. I would bet that they are down a bit. How would you do this for a string of negative years, and does this lead to bad economy = bad schools?

Let the school run its own endowment as it sees fit. The school can balance the spend vs invest argument from intro to economics. Regulation would serve no point but to enrich bureaucrats.

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