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I pick up the newspaper and check the Classifieds every Sunday. So far what I see is that the higher paying jobs require a degree. I am not talking about trades like electrician, plumber, or carpenter or some other high risk jobs that pay high wages in some areas to atract people. I am talking about professional jobs that require degrees and from what I see the higher the degree the higher the pay.
With that in mind I believe there is validity on those stats. Maybe skewed to some degree as part of advertising though, take care.
You mean skilled jobs that someone's going to do that doesn't want to ask "DO you want fries with that?"
LOL!
Those numbers are unrealistic, and there have been many articles disproving it.
Hell, those numbers are even HIGHER than the MOST optimistic claims I've seen prior. (Except for the bit about the BS degree not worth that much compared to a PHD)
-THat's Plain High School Diploma!
I pick up the newspaper and check the Classifieds every Sunday. So far what I see is that the higher paying jobs require a degree. I am not talking about trades like electrician, plumber, or carpenter or some other high risk jobs that pay high wages in some areas to atract people. I am talking about professional jobs that require degrees and from what I see the higher the degree the higher the pay.
With that in mind I believe there is validity on those stats. Maybe skewed to some degree as part of advertising though, take care.
But what if you took the money you would have spent on college to regularly invest in stocks and bonds through a mutual fund like T. Rowe Price Capital Appreciation would do the trick (PRWCX). T. Rowe Price - Corporate Home. This fund has returned 8.6% annualized over the last decade and over 10% annualized for the last 15 years, with less volatility than the stock market as a whole. It's tough to know if you can consistently get more than 8%, so it's better to assume 8% or less for your rate of return.
If one invested the $80.000 (assuming $20,000/year for 4 years) into a fund getting 8%, and never adding another dime, you would have $2,191,447.76 at the end of 40 years.
But you could get lucky, the fund I mentioned has achieved over 11% over 25 years and if you got that you would have $1,009,123.17 at the end of 20 years and $8,021,549.83 at the end of 40 years.
If you go to college with the idea you are only going for higher earnings you're in my opinion you're a blubbering idiot. Nobody should go to college simply for the money it's a stupid idea for stupid people.
But what if you took the money you would have spent on college to regularly invest in stocks and bonds through a mutual fund like T. Rowe Price Capital Appreciation would do the trick (PRWCX). T. Rowe Price - Corporate Home. This fund has returned 8.6% annualized over the last decade and over 10% annualized for the last 15 years, with less volatility than the stock market as a whole. It's tough to know if you can consistently get more than 8%, so it's better to assume 8% or less for your rate of return.
If one invested the $80.000 (assuming $20,000/year for 4 years) into a fund getting 8%, and never adding another dime, you would have $2,191,447.76 at the end of 40 years.
But you could get lucky, the fund I mentioned has achieved over 11% over 25 years and if you got that you would have $1,009,123.17 at the end of 20 years and $8,021,549.83 at the end of 40 years.
If you go to college with the idea you are only going for higher earnings you're in my opinion you're a blubbering idiot. Nobody should go to college simply for the money it's a stupid idea for stupid people.
The problem is that you can go to many top public schools for a lot less than 80k. By not going to college you are likely locking yourself into manual labor.
The latest studies show career earnings with a degree at over a million more. If you want to use your example invest that difference each year and you'll have a lot more money than your examples.
"Masters degree holders make 2.1 million dollars more than those with just bachelor's degrees."
"Masters degree holders make 2.4 million dollars more than those with just a high school diploma."
Spread that amount over 40 years and you have $52,500/yr. Is that believable? (I've no idea if it's true.)
Ah! But there's a loophole: they didn't say how many "masters degree holders." So it could be: "Ten masters degree holders make 2.1 million dollars more than ten of those with just bachelor's degrees." That brings the difference to $5,250/yr.
Spread that amount over 40 years and you have $52,500/yr. Is that believable? (I've no idea if it's true.)
Ah! But there's a loophole: they didn't say how many "masters degree holders." So it could be: "Ten masters degree holders make 2.1 million dollars more than ten of those with just bachelor's degrees." That brings the difference to $5,250/yr.
It was on average not cumulative and the link was to the US census. There methods were in the appendices.
The problem is that you can go to many top public schools for a lot less than 80k. By not going to college you are likely locking yourself into manual labor.
Don't get me wrong I'm not suggesting going to school is a bad idea (it isn't) but going solely for the dollars is not.
I think $80k is light when you consider all the costs associated with attending 4 years of college.
The cost of tuition is one of the smaller costs.
There is room, food to eat, books, other expenses and spending money. Then if you really want the costs how much income is lost buy going to school and not working that minimum wage job working 40 hours/week? When you consider the total cost I think I am way light on the $80k for nearly any four year college even if you live at home.
The point I was trying to make is any 18 year old in this country can be a millionaire by the time he is 60 and if money was the only thing that mattered the best/surest route would be to invest the college fund.
But there is more to life than just money. You could invest the money, add $500/month to the account while being a garbage man in New York City and retire at 55 with $5 million dollars but I'd pass on that. I would rather end up with half a million having to work until 66 doing what I like doing.
But what if you took the money you would have spent on college to regularly invest in stocks and bonds through a mutual fund like T. Rowe Price Capital Appreciation would do the trick (PRWCX). T. Rowe Price - Corporate Home. This fund has returned 8.6% annualized over the last decade and over 10% annualized for the last 15 years, with less volatility than the stock market as a whole. It's tough to know if you can consistently get more than 8%, so it's better to assume 8% or less for your rate of return.
If one invested the $80.000 (assuming $20,000/year for 4 years) into a fund getting 8%, and never adding another dime, you would have $2,191,447.76 at the end of 40 years.
But you could get lucky, the fund I mentioned has achieved over 11% over 25 years and if you got that you would have $1,009,123.17 at the end of 20 years and $8,021,549.83 at the end of 40 years.
If you go to college with the idea you are only going for higher earnings you're in my opinion you're a blubbering idiot. Nobody should go to college simply for the money it's a stupid idea for stupid people.
While I agree with your assessment here, it is based on three assumptions:
1. The stock market will remain stable, or at least continue to grow. The example you gave seems to have remained consistent, but shiv happens. A friend's mom lost $300K in 2009 alone (out of $700K total).
2. That the investor has the patience to wait 20 years. Realistically, most people will cash out long before then.
3. That students or their parents have the $80K up front to invest. Investing a few dollars here and there is pointless and a waste of time. If you don't have a large chunk to throw down initially your returns are going to be small, and anyone who has an extra $80K laying around that they can risk investing is more-than-likely not in need of the "benefits" a college degree can bring.
You mean skilled jobs that someone's going to do that doesn't want to ask "DO you want fries with that?"
LOL!
Those numbers are unrealistic, and there have been many articles disproving it.
Hell, those numbers are even HIGHER than the MOST optimistic claims I've seen prior. (Except for the bit about the BS degree not worth that much compared to a PHD)
-THat's Plain High School Diploma!
The ones I meant are mostly trades. And they CAN pay pretty good wages. Many people do not want to take some of those jobs in areas where the risk is high.
There are some trades and positions in let us say Afganistan or Irak. You can get a very good check in a year.
The same in the U.S. Some high risks jobs do not require a degree, just experience and willingness to risk. I am not saying they are in the majority but they do exist out there, take care.
But what if you took the money you would have spent on college to regularly invest in stocks and bonds through a mutual fund like T. Rowe Price Capital Appreciation would do the trick (PRWCX). T. Rowe Price - Corporate Home. This fund has returned 8.6% annualized over the last decade and over 10% annualized for the last 15 years, with less volatility than the stock market as a whole. It's tough to know if you can consistently get more than 8%, so it's better to assume 8% or less for your rate of return.
If one invested the $80.000 (assuming $20,000/year for 4 years) into a fund getting 8%, and never adding another dime, you would have $2,191,447.76 at the end of 40 years.
But you could get lucky, the fund I mentioned has achieved over 11% over 25 years and if you got that you would have $1,009,123.17 at the end of 20 years and $8,021,549.83 at the end of 40 years.
If you go to college with the idea you are only going for higher earnings you're in my opinion you're a blubbering idiot. Nobody should go to college simply for the money it's a stupid idea for stupid people.
In my opinion you proved my point. If you invest in the market you are TAKING A RISK, correct?
Many high risk decisions can pay great or nothing. Your money can disappear in a split second but your diploma can stay with you forever.
In the overall scheme of things how many people do invest in the market?
Also, many people do have comfortable lives after they got an education with a degree. It seems to me you miss the overall picture. Overall, people are in higher income bracket when they have a degree of some sort. Now, if you break it down by field some fields do not fare as well as others. Some people like to play it safe by getting a degree and get higher chances and income, other do not by taking risks and do very well, that is great also. But to say what you seem to say as if degrees are not worth much I do not share your view, take care.
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