This week I wrote about the prepaid tuition plans offered by Washington state and Virginia. To close out the week I wanted to share a brief roundup of the other prepaid tuition programs still out there. First, take a look at the overview, then I'll offer some brief commentary: State Plan Premium (discount) to current tuition In-state public benefit In-state … [Read more...] about Prepaid tuition plan roundup
Yesterday I described the best prepaid tuition plan I know of, Washington state's Guaranteed Education Tuition plan, which allows you to place a tax-free bet on the trajectory of tuition inflation at Washington public universities. It's a weird investment vehicle, but you could see how it might play a speculative role in the portfolio of a sufficiently wealthy person, … [Read more...] about How to think about prepaid tuition plans: Virginia Prepaid529
I've written extensively about 529 college savings plans, which are a way for the wealthy to permanently shield intergenerational transfers of appreciated assets from taxation while also allowing those assets to internally compound tax-free. However, there's a second kind of investment vehicle conceived of by section 529 of the Internal Revenue Code: prepaid tuition … [Read more...] about How to think about prepaid tuition plans: Washington’s Guaranteed Education Tuition plan
I've been thinking lately about the role taxes play in calculating investment returns. It's not a question that's very relevant to most people, since for the vast majority of Americans investments are best made in accounts that offer tax-free compounding, whether that's an IRA, 401(k), HSA, or 529 account. But once you start to think about it, there are potentially … [Read more...] about Should long-term taxable investors consider dividend-minimal funds?
I do not, as a rule, care about the United States budget deficit. This is for three main reasons: the United States issues dollar-denominated debt, and so has no risk of default, short of political (versus economic) catastrophe; the United States spends such an extraordinary amount on national defense that we have a "peace dividend" available on demand should we choose … [Read more...] about If you care about deficits, this is what you should care about