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Old 12-16-2018, 09:25 PM
 
11,679 posts, read 7,048,359 times
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Quote:
Originally Posted by mizzourah2006 View Post
Lol, assuming their kid has to go to a private ivy for school is a bit of a false narrative. The state school in my State is less than 1/3rd that for all 4 years and that assumes you live on campus all 4 years, which is more expensive.
I think kids (and parents) come out way ahead by living at home and going to community college. About $3-4K/year around here and they can work part time jobs while attending...may be able to enter a university with $0 debt and $20k+ in the bank (a huge downpayment on a house after college). Do they really have to attend a $40k private school to take stuff like English 111/algebra 1/trig/US History/etc? There are people attending med/vet/dent school who did very well at CC.
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Old 12-16-2018, 11:54 PM
 
7,922 posts, read 5,039,870 times
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Quote:
Originally Posted by lieqiang View Post
Are you sure? The ceiling for subsidies is 400% FPL which for 2018 is about $64k. Depends on how you're invested but I think it's possible to have 60k income from 3 million in taxable.
My numbers assume a single person, without kids. Considerations for couples and/or parents are going to be different...in matters of taxes, healthcare, long-range planning, and so forth. For a married couple, there are tax-benefits or tax-penalties, depending on earnings (salary). For persons living off of investments, married couples appear to have an advantage over singles, both in terms of federal income tax, and ACA-subsidy qualification. Then again, even the hero of the FIRE movement, MMM himself, is proof of the potential disadvantages; recently he and his wife got divorced - with, almost certainly, devastating financial consequences.

Whereas there are many ways of reaching a modicum of success (high salary, good savings habits, decades-long dedication to one's craft, S&P 500, real-estate, lavish legal settlements, stock options, inheritance, drug-dealing, Bitcoin,...)... some, ahem, more reliable than others... it is quite difficult to so orient one's finances, as to have steady income without much portfolio-fluctuation, while saving on taxes, being well-insured against disastrous exigencies, getting good health-care at a discount, and sorting the various other problems of normal human existence.

In other words, we can and should make maximal effort to boost our income and to save our earnings... even in the face of adversity. But... even if we have achieved a tidy sum, and sorted our lives to minimize expenses, well, even then, there's no guarantee that we're "ready" to align dreams with reality.
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Old 12-17-2018, 12:30 AM
 
11,679 posts, read 7,048,359 times
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Look at it like this - anyone can duplicate my expenses and live on $10k/year. Even if SHTF, it’s not that difficult to earn $10k+. Heck, get a part time job working 20 hours per week. Healthcare would be free and one would probably qualify for other subsidies. If you’re in a relationship and home/car are paid off, you can actually live well on $10-12k/year. Of course this is a worst case scenario where all you’ve accumulated has been sucked dry.

The part time job may even be a good idea for those earning $20k+ passive income in a “retirement” they enjoy. I’ve thought about substitute teaching locally 1 or 2 days per week just to get out a little. I don’t need the money, but an extra $5k or so might be nice to throw into a ETF or something every year...or maybe even something much riskier. $5k/year for 30 or so years would probably result in a larger nest egg than most retirees have...on top of the net worth I’ve already accumulated not being touched for 30 years. Yeah, it’s work, but work isn’t really work when you go when you feel like it.
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Old 12-17-2018, 01:18 AM
 
26,090 posts, read 28,500,170 times
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Quote:
Originally Posted by lieqiang View Post
He's got pretty detailed answers to all your questions on his blog. You're the one saying he's lying without having bothered to investigate, so the burden is on you to prove otherwise not me.
I notice this with strident naysayers. The answers to their questions/criticisms are often provided right on the blogs they criticize but didn't even bother to read.
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Old 12-17-2018, 02:15 AM
 
71,568 posts, read 71,730,589 times
Reputation: 49168
Quote:
Originally Posted by lieqiang View Post
Medicaid LTC is really tough to game. Maybe by gifting then waiting out the five year lookback window?
there are lots of laws and tools in place that anyone can utilize when it comes to medicaid ltc . they are all purposely left in place for whoever wants to use them so i would never call it gaming the system .

there are ways to preserve assets through loans , medicaid trusts , gifting and in some states just having a spouse utilize their right say no which can open the door for medicaid negotiation ..

our long term care insurance is a state partnership plan that automatically has medicaid pick up the expenses after the 3 years insurance runs out and assets and income for the stay at home spouse have 100% protection . that is the deal with the state with our partnership plans .

as a now famous judge in CT said . he does not want 2 people on public assistance in his state . the stay at home spouse is driven in to impovershment usually as assets and income are severely restricted .

negotiations with medicaid have become the norm now instead of recovery in ny , ct and florida . our estate attorney who is one of the biggest in this field said he has no recovery cases from medicaid . now everything is a negotiation as everything is done to preserve the life style of the stay at home spouse .

many states have not adopted the stance ny ,florida and ct do , but all these tools and laws have been purposely left in place to be used by those who choose to use them .

it is no different than our tax system is . your fair share of taxes is the lowest amount you can get them using the laws and tools put in place for that purpose .

https://www.elderlawanswers.com/medi...t-say-no-12156

Last edited by mathjak107; 12-17-2018 at 02:26 AM..
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Old 12-17-2018, 02:23 AM
 
1,280 posts, read 434,756 times
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Quote:
Originally Posted by lieqiang View Post
You're wrong again.

1. It says right there in the quote I made that he's calculating it in inflation adjusted dollars.
2. Avg cost for year of college is 20k public, 47k private (tuition, room, board) source = https://www.collegeraptor.com/find-c...sts-2017-2018/



He's got pretty detailed answers to all your questions on his blog. You're the one saying he's lying without having bothered to investigate, so the burden is on you to prove otherwise not me.



He (not they) writes one post per week, but it's irrelevant to our discussion whether one considers that a job since we're disagreeing on your claims that he's living in poverty, lying about his net worth, not caring for his family, can't afford to pay for their college, etc. whatever other unfounded BS you're slinging because his life doesn't conform to your world view.
No, you’re not correct.

You are totally missing my clear point.

He has $55k invested for college. That will result in $200k available for college in 19 years, adjusting for investment returns and inflation.

$200k isn’t enough for college now. And it certainly won’t be enough once college costs climb for another 19 years.

The other answers to my questions are not available in his blogs or the articles.

You probably read Alex Jones’ Infowars online and believe all of it, too, without verifying it.
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Old 12-17-2018, 03:06 AM
 
11,679 posts, read 7,048,359 times
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Quote:
Originally Posted by PuppiesandKittens View Post
No, youíre not correct.

You are totally missing my clear point.

He has $55k invested for college. That will result in $200k available for college in 19 years, adjusting for investment returns and inflation.
Hh
$200k isnít enough for college now. And it certainly wonít be enough once college costs climb for another 19 years.

The other answers to my questions are not available in his blogs or the articles.

You probably read Alex Jonesí Infowars online and believe all of it, too, without verifying it.
Who says itís a parentís duty to amass enough fortune to send their child to any university in the world paid in full?

And why is $200k not enough for college now? We have one of the best schools is the country in my state and tuition/fees/room is about $23k/year. I would think a kid that needs to attend a great school would prove their academic worth by being awarded some sort of scholarships to cover part of tuition. I certainly wouldnít feel obligated to send a C student to the best school.
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Old 12-17-2018, 04:03 AM
 
15,784 posts, read 9,530,520 times
Reputation: 68329
thread closed for mod review.

Many posts have been deleted - almost all to do with a thread hijack involving personal attacks between two posters here (not the Eddie Haskell story - the other one). I ask that those two posters refrain from posting at Economics forums today - and leave each other alone.
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Old 12-18-2018, 06:13 PM
 
Location: On the road
5,941 posts, read 2,893,129 times
Reputation: 11381
Quote:
Originally Posted by PuppiesandKittens View Post
He has $55k invested for college. That will result in $200k available for college in 19 years, adjusting for investment returns and inflation.
Nope. He clearly shows how he has calculated the returns for investments with dividends and cap gains reinvested over a 20 year period versus the rate of inflation for tuition to arrive at having the money to cover a $200k tuition, including graphs showing the growth.

To take this farther on how ridiculous your complaint is, how many actual still working folks save up to throw $200k at their kids' education? I submit very few, yet here you are criticizing this guy as not taking care of his family because he's socking away $55k in investments to grow for his child's college before that kid is even born. It's as silly as your implying not having a car means he's raising them in poverty.

Quote:
Originally Posted by PuppiesandKittens View Post
$200k isn’t enough for college now.
Nope.





Quote:
Originally Posted by PuppiesandKittens View Post
The other answers to my questions are not available in his blogs or the articles.
They certainly are, you not bothering to look into and comparing everything in life to your own personal situation "I can't do that and I've worked for 20 years" doesn't mean it's not there.


Quote:
Originally Posted by PuppiesandKittens View Post
You probably read Alex Jones’ Infowars online and believe all of it, too, without verifying it.
Nope.

Last edited by lieqiang; 12-18-2018 at 06:36 PM..
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