6 ms·

Compare this to racking up massive debt going to college without any guarantee of a decent job upon graduation.

• randomdata 14y ago
  Not to mention, assuming four years of study is the alternative, it puts one about $1.6M ahead by retirement, even ignoring the costs of education itself.
  • jiggy2011 14y ago
    How you get the 1.6M figure?
    • randomdata 14y ago
      Assumed a nominal 5% ROI on the $180K saved during those four years that would otherwise be not earned if going to school.
      • jiggy2011 14y ago
        5% would seem high to me and assumes that the money is saved an invested as opposed to spent on luxury goods. It also assumed that earnings potential throughout career will always be as good as that of an average college grad.
        • randomdata 14y ago
          > 5% would seem high to me 5% is a pretty standard rate used in these type of calculations. It might be on the high side currently, but it is also low for other periods of time, hence being a decent average to work with. > and assumes that the money is saved an invested as opposed to spent on luxury goods. Naturally, but the potential remains. > It also assumed that earnings potential throughout career will always be as good as that of an average college grad. It makes no such assumptions. Earnings beyond the first four years after high school are completely irrelevant to my calculations. You will still have $1.6M in hand if you never made another cent, assuming you do not touch the investment until retirement.
          • jiggy2011 14y ago
            I assumed based on "it puts one about $1.6M ahead by retirement" and since you won't touch your retirement funds before your retirement (or at least not within 4 years) then it would make sense to take future earnings potential into account. In other words by going to college you are still "investing" some amount of money in yourself for a future payoff that is presumably better, though of course may not necessarily be.
            • randomdata 14y ago
              It is a valid point. Though according to the data, one really needs a post-graduate education to really see any kind of future payoff. By that point we could be looking at closer to a $3M difference. If you can make that up, then it is definitely worth it, but it is a long road ahead. With all that said, education is still worth it for education's sake. You don't really need to justify it with future incomes and better jobs. I find it disconcerting that so many do.
              • bippi 14y ago
                Quoting Shakespeare won't get you very far at lunchtime.