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I think 30K is quite a reasonable cost. Parents have almost two decades to save the money, plus they can do so with a 529 plan and avoid capital gains taxes. Ev
by halpert 5y ago
I think 30K is quite a reasonable cost. Parents have almost two decades to save the money, plus they can do so with a 529 plan and avoid capital gains taxes. Even saving $100 dollars a month invested in the market will net 42,000 after 18 years (assuming 7% return).
- lapsedacademic 5y ago> assuming 7% return Tuition has been increasing at 8% per year.
- jackfruitpeel 5y agoEuropean here — that is an insane cost for college fees from my POV. I attended one of the most highly rated courses for my profession in Europe and only paid about €3K per year.
- halpert 5y agoBut your taxes are also much higher. You would pay more than 30K over 18 years most likely.
- throwaway675309 5y agoYou'd be surprised at how in some places in Europe the differential in taxes compared to the United States is not as significant as you would expect. When you factor in state and federal taxes it's not that unusual to pay upwards of 35-40% in annual taxes. The difference is at least a lot of the European countries have something to show for it (subsidized education, universal healthcare, etc).
- halpert 5y agoI’ve lived in Germany for a number of years. My taxes were around 42% if I recall correctly. Plus 400 euros a month for health insurance. Oh, and don’t forget 25% of capital gains. I do agree with you though: you get your money’s worth in Europe.
- jackfruitpeel 5y agoYeah, I live in SF now after moving from Europe. The tax difference is not really that different for me (high earner), but what you get in return in really depressing. Good weather and astronomical wages make it worthwhile.
- rtkwe 5y agoTaxes don't just go to one thing... We spend more on healthcare and education than European citizens and that's not counting better public transit.