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Author: BoxCarRidder4 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Map to the Future Date: 5/29/2007 9:13 PM
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Thanks for being harsh guys, I appreciate it because that is what I need. I will try to respond to what I can.

First off, I think you guys are right on the real estate but a family friend keeps telling me to jump on the house (he is in real estate himself) but I think you guys are right in the fact that it doesn't fit well with my objectives.

Any tax advantages of the student loans are pretty worthless until you are in a reasonably high tax bracket. The current loans at 7% for five years really add up. Don't count on interest rates being lower in five years.
By this, are you recommending that I use money to pay school expenses rather than funding my 401k, or are you saying not to dismiss the interest rate and really consider the choice?

"my income comes from online endeavors." What the heck is his? The way it is phrased sounds like a red flag that it isn't something quite upright.
I make revenue from marketing/advertising, just didn't want to go into my websites and appear to be self-promoting.

Aim for a balance between student loans and having a nice nestegg when you finally graduate. In addition to the financial aspects, being financially secure then will allow you to take the job with the best long-term prospects and not just the one that pays the best as an entry level employee.
In this sense do you think my $8k is a good start and just keep trying to add $4k/yr to the IRA or using the $31k that isn't invested for both school and investing?

That $10,000 in housing costs- is that campus housing or off-campus housing? Have you looked at shared housing options- either on-campus or off-campus?
This last year was $10,000 on campus. Next year was going to be $13,000 if I remained on campus. I just found out today that next year I will be off campus for $7200 for the year, which will save me a good amount from what I had budgeted. It is expensive. Business Week ranked Berkeley the #1 most expensive college housing.

Wow...with tuition and housing at $18,000/yr, what is going to run it up to $70K for 3 years?
Well, UC system increased fees 7% from last year to next year and has been increasing far above inflation in recent years. I would rather over-prepare than under-prepare, but I don't think the $70k is far off. I have to include my food and any other living expenses plus books.

You can 'earn' lots of money by NOT SPENDING IT now. Have you considered that possibility? It seems you are planning on living on the credit card for the next six years. That's an expensive way to go.
I do not use credit cards except for business expenses just to keep my credit score in good condition and those are all paid off, no balance is every carried over.

I think with my new housing which I confirmed this afternoon, I can drop school expenses down to a yearly $18,000.

If anybody else wants to help me by completely thrashing my plan, please do, because it only helps to rebuild it stronger. And those that I replied to, if my response doesn't make sense or appears flawed, please reply.

-Will
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