158-Masterclass on 529 Plans a.k.a. Qualified Tuition Programs - Part 3: Pre-Paid Tuition Plans
Radical Personal Finance
Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP
4.2 • 1.9K Ratings
🗓️ 26 February 2015
⏱️ 54 minutes
🧾️ Download transcript
Summary
Today, we dive into the details of Pre-Paid Tuition Programs. I'm generally not a fan of these programs and you get to hear why! (I do acknowledge that they have their uses).
This opinion (my non-fan-ness) has always been a bit challenging since I do financial planning the state of Florida...and Florida has the most popular pre-paid tution program in the country!
But, I still believe I'm right and today, I defend that belief.
Listen to the show to hear:
- Why pre-paid tuition programs are in tough financial straits.
- Why you get a negative nominal rate of return on Florida's program.
- Why college tuition prices are falling so much even if the official statistics don't reflect the reality.
Enjoy!
Joshua
- Support Radical Personal Finance on Patreon: http://radicalpersonalfinance.com/patron
- Part 1 of this 529 Plan Series: http://radicalpersonalfinance.com/138-masterclass-on-529-plans-a-k-a-qualified-tuition-programs-part-1/
- Part 2 of this 529 Plan Series: http://radicalpersonalfinance.com/154-masterclass-on-529-plans-a-k-a-qualified-tuition-programs-part-2-savings-plans/
Transcript
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| 0:00.0 | Radical Personal Finance is brought to you free of charge and free of corporate sponsorship |
| 0:06.3 | thanks to the patrons of the show. |
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| 0:20.8 | Today on the show we continue our 529 plan masterclass with a bit of a deep dive into the idea of the prepaid tuition contract. I live in Florida. These types of |
| 0:36.2 | contracts are incredibly popular in my state and I'll tell you why I do not plan |
| 0:41.8 | to buy one for my children. Welcome to the Radical Personal Finance Podcast. My name is Joshua Sheets and today is |
| 1:04.8 | Wednesday, February 25, 2015. Today we continue our process of going |
| 1:11.2 | through the college plans and we get to the in some states |
| 1:15.0 | much loved and in other states much hated prepaid tuition programs. I think they're |
| 1:21.0 | pretty much a waste of time but I'll defend that opinion today. |
| 1:25.0 | Not only will I actually defend that opinion, but I'll, as always, give you the other side of the argument. |
| 1:38.0 | I'll tell you the places that I do think these plans are useful and how I can see them being of benefit for you. |
| 1:45.0 | So that's what you can expect for today. |
| 1:48.0 | Trying to round out this 529 plan. |
| 1:50.0 | At the moment, we're going to do this today on prepaid tuition programs. I'm going to cover one additional |
| 1:56.0 | topic. I'm going to do probably an entire show I think on the independent 529 plan because this is an interesting |
| 2:01.2 | option for those of you who are very |
| 2:03.2 | committed to name-brand prestigious universities and so I want I'll probably just do |
| 2:08.3 | that as an entire show although it works similarly to what we're talking about today |
| 2:11.8 | and if you haven't heard the background of this series, |
| 2:17.0 | you will want to go back and listen |
... |
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