3 thoughts on “What a Cute Baby! Start Saving for College Now

  1. Since there is no tax break in Texas for 529s, plans from other states can offer better plans with lower fees or better investment options.

    Here’s more info on some of those options:


    Michael, I am interested in your 5% college cost inflation rate. I’ve heard 8%, but given the current crisis with student loans, it also seems hard to imagine that 8% could continue to compound over the next 10-20 years. Was 5% just your estimate?

  2. I agree the cost of college has been rising at a faster than 5% rate in recent years. Probably that is unsustainable. When interest rates increase, it will put downward pressure on the rate increases, due to the prevalence of debt-financing of college education. But 5% is just one assumption among many I could make, I have no extraordinary insight on that one.
    Thanks for the kiplinger 529 link. Lots of different state plans can do the trick.

  3. I still think we need a charter school-like alternative to college education. It’s all about disruption.

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