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Its very bad comparison. A couple of problems: the comp is purely of retirement savings, however the college kid is spending more on consumption per year all
by holaamigos 17y ago
Its very bad comparison. A couple of problems: the comp is purely of retirement savings, however the college kid is spending more on consumption per year all through his life (not considered), also the assumption of 8% returns is unlikely.
Stay in college kids!
- fan 17y agoThe article has a huge flaw in not comparing equal consumption. The interesting question isn't how much retirement savings you'll have at the end, but how much "net return" you get from the college degree. I'd like to see a Net Present Value calculation of the two choices instead of some flaky calculation assuming a fixed 5% savings rate.