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Don't count on sports scholarships and several other great tips from JPM on college planning

Don't count on sports scholarships and several other great tips from JPM on college planning

| December 30, 2018
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Don't count on sports scholarships!

But higher education does tend to pay off, even today.  

Want a job?  You get one.  It might not be perfect, but ninety-eight out of a hundred people with a college degree have one.  

Be careful what degree you pick, and I think starting salaries are a little misleading.  Some jobs have very little earnings upside which is fine if it fits with your plans.  But if you want to support a family, it might take some compromises.  

Look at the cost of college inflation!  It can't keep up, can it?  

Gulp...

Costs go UP, financial aid goes DOWN

"So you are saying there's a chance?"

0.3% of college students get enough grants and scholarships to cover the costs

College debt messes up retirement savings.  I saw a couple in their 20's recently with loan payments equivalent to a $400,000 mortgage.  

We still people buy savings bonds and open up savings accounts for their kids and grandchildren.  The thought is nice, but with 6% inflation annually on college we are going to need to earn some money on it or we'll be peddling backward.

Invest over time, potentially pay a lot less.

I've seen people do this, it can change lives.  FYI Grandparents!

How about a Rockafeller style legacy, an education endowment for your future great grandchildren?

The whole deck and more disclaimers can be found here: https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/college-savings-plan/college-planning-essentials 

Thanks for taking a look!

Tom

This article represents opinions of the authors and not those of their firm and are subject to change from time to time, and do not constitute a recommendation to purchase and sale any security nor to engage in any particular investment or legal strategy. The information contained here has been obtained from sources believed to be reliable but cannot be guaranteed for accuracy.

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