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06.26.08, 17:43 PM New York City
45 replies
If you were getting major FA from TT private, but come into inheritance of $1MM (no 401k to speak of, HHI was too low to save for retirement), would you pull dc out of school and send dc to public and move to a better gen ed zone since you can afford to buy an apt there? Or keep dc at TT and pay full tuition? What would you do? [ Reply | Watch | Flag ]
New York City 06.26.08, 05:43 PM Flag
 

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I would keep my child in TT. [ Reply | More
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General Topics 06.26.08, 05:45 PM Flag
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Same here. But I don't think you'd lose all your FA since the money is considered an asset rather than income after the first year. [ Reply | More
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General Topics 06.26.08, 05:52 PM Flag
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Assets are weighted more heavily than income in FA calculations [ Reply | More
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General Topics 06.26.08, 05:53 PM Flag
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This makes me think about a child i know who gets FA even though there parents who live together pretend they don't have money. I think owning a house in the hamptons and an apartment on the UWS is enough not to get FA for one kid [ Reply | More
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General Topics 06.26.08, 06:23 PM Flag
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will the school find out about the inheritance on fin aid forms and thus cut off all your FA? [ Reply | More
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General Topics 06.26.08, 05:47 PM Flag
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np: I would hope so! I can't imagine that schools give FA to parents who have money, but would rather not spend it on their child's education. [ Reply | More
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General Topics 06.26.08, 05:48 PM Flag
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I wouldn't buy/move unless I could comfortably afford the new apartment AND save a significant portion of the inheritance for retirement. [ Reply | More
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General Topics 06.26.08, 05:47 PM Flag
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You get to keep the FA? [ Reply | More
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General Topics 06.26.08, 05:48 PM Flag
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No, I mean I assume no. Why would they give us FA? Even if we buy an apt with this money, won't they ask us to take a home equity loan out to finance tuition? [ Reply | More
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General Topics 06.26.08, 05:58 PM Flag
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I would move to a better public school district hands down! save for college and retirement don't waste it on private school. [ Reply | More
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General Topics 06.26.08, 06:04 PM Flag
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Thing is if I move to a good zone (like PS87 or 199 or equivalent), I spend all my money on housing that I can't save for retirement or college, either. Housing is cheap where I am but public school is really bad. [ Reply | More
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General Topics 06.26.08, 06:07 PM Flag
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So rent in a good district, save for retirement, or get a second job to save for retirement. [ Reply | More
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General Topics 06.26.08, 06:19 PM Flag
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i would personally buy the apartment in the good zone - 1mil would at least get you a 1300 sq ft apt in a post war building on the UES and into some good schools - can you finance any of it? [ Reply | More
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General Topics 06.26.08, 06:03 PM Flag
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But if they buy the apartment, they still won't have any savings or a retirement plan. [ Reply | More
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General Topics 06.26.08, 06:05 PM Flag
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do you currently rent or own? [ Reply | More
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General Topics 06.26.08, 06:08 PM Flag
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maybe they could work harder? [ Reply | More
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General Topics 06.26.08, 06:09 PM Flag
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LOL, you mean take a 2nd job? We are already working like dogs, though not paid much for it. [ Reply | More
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General Topics 06.26.08, 06:12 PM Flag
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you may want to consider a different line of work. [ Reply | More
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General Topics 06.26.08, 06:23 PM Flag
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np. No problem. And then you can homeschool because all the teachers at your dc's school changed careers. [ Reply | More
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General Topics 06.26.08, 06:39 PM Flag
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Where are there teachers who don't have 403(b) plans or pension plans with employer contributions/financing? [ Reply | More
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General Topics 06.26.08, 07:01 PM Flag
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lol! sound like you think you deserve a free ride because of all your backbreaking labor for our dcs. give me a break. you obviously come from a family with resources, and have chosen a low income life because you likely never thought you'd have to live on a low salary...or didn't think it mattered because you knew you stood to inherit $$$ [ Reply | More
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General Topics 06.26.08, 07:32 PM Flag
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You couldn't possibly be any more off base. And I don't see anyone here asking for a free ride, but I do get sick of the attitude that says screw people who don't make a lot of money, they should just work harder or get a different job. The fact is, if everyone had that attitude we'd all be screwed. [ Reply | More
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General Topics 06.26.08, 07:41 PM Flag
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well, I work hard too, and don't see myself inheriting a million bucks anytime soon. your kids get tt education for very little I assume, and now someone hands you a million. we are supposed to feel bad for you? btw, you won't need to save for retirement if you invest that $$, and keep on doing what you are doing currently...oh yeah, I forgot. they won't let you stay at tt without paying given all the $$ you now have [ Reply | More
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General Topics 06.26.08, 08:46 PM Flag
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I think you're confused. I'm a NP - see up there where I wrote np? I haven't inherited a million dollars and don't expect to either. [ Reply | More
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General Topics 06.27.08, 11:49 AM Flag
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np: Do you want to be working like dogs when you are 80? If not, you have to make saving for retirement a priority. [ Reply | More
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General Topics 06.26.08, 06:24 PM Flag
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but at least the apartment is an asset they can sell [ Reply | More
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General Topics 06.26.08, 06:11 PM Flag
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It's not a liquid asset though. Depending on the credit market at the time they need the cash, they may not be able to borrow against their home. [ Reply | More
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General Topics 06.26.08, 06:17 PM Flag
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they will not have that if they spend the $$ on tuition [ Reply | More
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General Topics 06.26.08, 06:12 PM Flag
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Tuition is not going to be $1MM. Only one dc. $30k/yr. [ Reply | More
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General Topics 06.26.08, 06:15 PM Flag
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I thought the whole purpose of moving was that they would go into a better public school district and NOT pay tuition. [ Reply | More
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General Topics 06.26.08, 06:18 PM Flag
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if they don't move and spend $$ on tuition it can be used for retirement [ Reply | More
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General Topics 06.26.08, 06:25 PM Flag
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did you try G&T? [ Reply | More
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General Topics 06.26.08, 06:14 PM Flag
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here's an idea. housing prices are going to drop so keep dc in tt private next year and look around and find a good deal in a good public zone and then make the move. [ Reply | More
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General Topics 06.26.08, 06:16 PM Flag
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How about keeping $1MM in the liquid portfolio, draw 3% for tuition, continue to rent in the cheap nabe? [ Reply | More
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General Topics 06.26.08, 06:21 PM Flag
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that's what I was going to suggest...and if the money is well invested, there should be no need to touch principal, annually. Each year, "transfer" as much as possible into 401K for tax purposes (buy paying yourself the differential in salary) and fund college 529 account through NY Saves (10K) [ Reply | More
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General Topics 06.26.08, 06:23 PM Flag
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the $$ may never compound this way [ Reply | More
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General Topics 06.26.08, 06:26 PM Flag
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How will it not? Using 401 K and NY College saves offer even futher tax advantages than just a regular account. The individual savings accounts (ie the non college and 401 K) may not appear to compound, but the total sure will. [ Reply | More
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General Topics 06.26.08, 06:31 PM Flag
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LOL - unless its "well-invested" this year. Name an investment this year that's increased, apart from an oil patch somewhere? [ Reply | More
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General Topics 06.26.08, 06:48 PM Flag
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she would have made tuition if she was in munis [ Reply | More
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General Topics 06.26.08, 06:49 PM Flag
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what is your current overhead (rent) and how much FA? [ Reply | More
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General Topics 06.26.08, 06:27 PM Flag
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current rent:2k. Rent in good gen ed zone for a much smaller 2BR apt would be $5k. 80% FA right now. Difference in rent from here and good zone is $3k/month which pays for tuition. So, doesn't make sense to rent in a good zone. [ Reply | More
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General Topics 06.26.08, 06:36 PM Flag
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Isn't it amazing how the cost of rent in good zones is at least equal to private school tuition? Worse when buying a home. [ Reply | More
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General Topics 06.26.08, 06:49 PM Flag
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I guess it's the market in action. [ Reply | More
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General Topics 06.26.08, 06:52 PM Flag
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I would keep my child in the private school. [ Reply | More
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General Topics 06.27.08, 04:23 AM Flag
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So, the school believed in your DC and made a commitment to that child when you had no money, and then you pull the kid out rather than pay for what you were happy to take? Feels wrong to me, and I was on FA in my time. [ Reply | More
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General Topics 06.27.08, 09:59 AM Flag
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