2022 Real Estate Observations (Boston, Worcester, Springfield: firms, cities, places)

[yesmaybe]

Originally Posted by matrix5k

585k for a condo in Marlborough? No surprise it's not selling.

Has to be that expensive to get built. It's new construction.

[BostonMike7]

Originally Posted by id77

This is a big one. The month our kid was born a UTMA was set up and money invested within it. Compounding works wonders over 20 years.

I once read an article that if each person born in the US had $20,000 put into an account invested in 1-2 ETFs and not withdrawn until retirement, the average balance after 65 years would be over $1.2 million. It was a bit of an out-there idea to solve Social Security, but the underlying principal of compounding remains the same.

I gotta look into this. We set up 529's for each kid but I like the idea of the UTMA.

From what I see however it will affect financial aid consideration, but I honestly I think that's going out the window regardless.

[id77]

Originally Posted by BostonMike7

I gotta look into this. We set up 529's for each kid but I like the idea of the UTMA.

From what I see however it will affect financial aid consideration, but I honestly I think that's going out the window regardless.

Watch out for taxes as well. There's special rules about children with unearned income, and they jump straight to the parents' top tax bracket in a hurry.

[matrix5k]

I've never heard of UTMA. What advantage do these accounts have vs a regular brokerage for your kids?

[WestieWhitie]

Originally Posted by id77

Watch out for taxes as well. There's special rules about children with unearned income, and they jump straight to the parents' top tax bracket in a hurry.

Politburo never passing on a chance to collect its rubles!

[MtPleasantDream]

Originally Posted by GeoffD

The demographics aren’t awful. 7% poverty rate. 40% college educated adults. It’s 1/3 English not the primary language at home so ESL and other special education may drag down the rating. I imagine COVID-19 had a big impact with non-English speaking parents. They rely more on the schools not being broken.

English not being the primary language at home does not necessarily mean their kids are not native speakers of English.
In fact the number for Lexington is 35.9%.

[id77]

Originally Posted by matrix5k

I've never heard of UTMA. What advantage do these accounts have vs a regular brokerage for your kids?

For one, to open a brokerage with most (if not all) firms in your own name you need to be 18, so unless your kids are legally adults, that's a non-starter.

All the UTMA is is a brokerage account for a minor with a guardian as the trustee until they turn of legal age to assume control of it (18-21 in most states). That is, opening a UTMA for your kid is the same as opening a brokerage account for your kids (that you control until they're an adult). When the 1099 comes in January, its in their name.

[matrix5k]

Originally Posted by id77

For one, to open a brokerage with most (if not all) firms in your own name you need to be 18, so unless your kids are legally adults, that's a non-starter.

All the UTMA is is a brokerage account for a minor with a guardian as the trustee until they turn of legal age to assume control of it (18-21 in most states). That is, opening a UTMA for your kid is the same as opening a brokerage account for your kids (that you control until they're an adult). When the 1099 comes in January, its in their name.

Thanks. So when people say "I bought Amazon shares for my kid 20 years ago", they do it through a UTMA?

[id77]

Originally Posted by matrix5k

Thanks. So when people say "I bought Amazon shares for my kid 20 years ago", they do it through a UTMA?

One of several ways they could have. Could also be a UGMA, a trust, or even paper certificates sitting in a safety deposit box somewhere if the purchase was way back when enough. The differences of each are a discussion for another forum, though.

[bricka]

the real hack to pay next to nothing for college is to 1) keep your taxable household income low (like $100kish or lower), 2) only own one house, 3) keep all your assets in tax-advantaged accounts, and 4) have your kids apply to need-blind schools.

if your kid is accepted to a need-blind school, the school will basically cover all costs to the point that the school is cheaper than public school.

some examples of need-blind schools: BC, Holy Cross, any NESCAC or Ivy League school.

you can calculate the cost using this calculator, which is actually endorsed as the official calculator by each of these schools: https://myintuition.org/quick-college-cost-estimator/

source: i went to a need-blind school and paid less than i would have to go to Umass in state because i got need-blind aid, but my parents had a fully stocked 401k.