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Ross Naylor's Ezine - 3 ways to fund college/university costs


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Ross Naylor's Ezine - 3 ways to fund college/university costs

  1. 1. Ross Naylor +48 (22) 389 65 70 (w) +48 512 275 706 (m) ul. Królewska 27 lok 411 Warszawa 00-060 Poland. 3 ways to fund Words from the wise college/university costs "Giving politicians the ability to borrow is like giving a teenager a With my own daughter bottle of whisky and the keys to a just starting kindergarten Corvette" and fees for the first term having just been - Doug Casey, Chairman of paid, now seems like a Casey Research. pretty good ti me to be taking a look at [Admission - I altered the quote education costs. In slightly. I changed the spelling of whisky in the quote, from the particular, I want to focus on university/college costs. American way to the proper way. Sorry Doug!] I know that it is quite a jump from kindergarten to university. However, without the aid of a time machine, there isn't much that I can do about planning for kindergarten costs while with 16 years until university, there is a lot that I can do about that. The first thing, is to consider the various ways in which these costs can be funded (let's assume that I would prefer that she didn't spend the first 10 years after her VIX = Volatility graduation repaying loans). Having had a think, the main What is the VIX Index? ways that I can see are as follows: The VIX Index (VIX:IND) is an 1. Pay the costs from my income. If I don't do anything index measuring the market's about it now, this is the most likely option. However, expectation of stock market
  2. 2. given that by then I will be in my early 50's and should be (S&P 500 ) volatility over the focusing on my own retirement, this would hardly be next 30 days. It is also known as ideal. the "fear index". Why does it matter? 2. I can look at investing money over the next 16 years so that I can use the proceeds to cover the costs. This It matters because it gives an can be done in two ways. Either by contributing a regular indication of expected range of monthly amount into a savings plan or I can invest a lump price movements up or down sum/ series of ad hoc payments. over the coming month. Although in recent years, peaks in the VIX The benefit of this is that the compound growth on my have coincided with low points investment does a lot of the heavy lifting for me. (buying opportunities) in the markets. 3. Scholarships, grants, etc. To be honest I am pretty What is it telling us right now? sceptical about this. A lot of universities had their endowments trashed in the credit crisis while at the same VIX values greater than 30 are time committing large sums of money to grand new generally associated with a large extensions. As a result their ability to support has been amount of volatility as a result of reduced. investor fear or uncertainty, while values below 20 generally Government support? Hmm, I don't think I'll count on correspond to less stressful, even complacent, times in the that. Most governments have far bigger funding problems markets. to worry about. Todays value is around 24. I.e. it At the same time, I am happy to take any money that is is significantly higher than it was going (it's the Scotsman in me) so I intend to look into pre credit crisis. However it is this further and will post my findings in a future issue. much lower than during the height of the crisis in September- October 2008, when it peaked at In reality, I will probably end up using a mix of all 3. The 80. one thing that will influence to what extent I rely on 1 & 3, is how smart I am now. Disclaimer The views expressed here are my own. They are not necessarily shared by AES International. They are subject to Food for thought change at any time based on market and other conditions. This is not an offer or solicitation Mark Mobius on why emerging markets may have learned from for the purchase or sale of any security and should not be past crises. construed as such. References to specific securities are for 10 predictions for the next 10 years illustrative or informational purposes only and are not Three reasons why people think property is a great investment: intended to be, and should not
  3. 3. leverage, price illusion & optimism bias. be interpreted as, recommendations to purchase or What 4 bullish billionaires are buying. sell such securities. Was it really a lost decade? - Highlights the power of diversification. Investing 100% in stocks would have lost money, investing equally across the asset classes would have returned 6.85%pa. Not great, but not bad considering we went through 2 bear markets. Gold (not so serious) And finally, the hemlock fund. Call me: +48 (22) 389 65 70 (w) +48 512 275 706 (m) To disallow Ross Naylor from sending you email with this service, click here.