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No, Marty, we don't want to seed ya baby
By adamg on Tue, 10/16/2018 - 5:27pm
We are excited to join with @MassTreasury to help kids in Boston and MA to have a future that involves post-secondary dreams and realities. #seedMAbaby pic.twitter.com/Cf5jAKie6c
— Boston Saves (@BostonSavesCSA) October 16, 2018
Mayor Walsh joined with State Treasurer Deb Goldberg today to announced a program in which the state will put $50 into a 529 college-savings account for every baby born or adopted in Massachusetts after Jan. 1, 2020. Cool idea, but the name sounds like something from an Austin Powers movie.
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Comments
Is Fidelity or someone else
Is Fidelity or someone else managing these 529s?
No
I think the MBTA is.
Cost of college
In 18 years is estimated to be $215,000. I guess every little bit of savings counts...
https://vanguard.wealthmsi.com/collcost.php#results
I'm guessing that for the
I'm guessing that for the majority of these accounts that get set up on behalf of kids, the $50 is going to be the only contribution for the lifetime of the account (unless donors or the state decide to do a "birthday present" annually or something).
Do the math.
https://www.investor.gov/additional-resources/free-financial-planning-to...
Let's give rich people our taxes today...
For a hamburger on Tuesday.
Really!? Seems like kind of a beneficent but useless gesture that'll get lost for the vast bulk of people. Why not just fund public education at something resembling a reasonable level?
Why are we betting that Wall St. will solve our problems?
Quality education for cheap
Quality education for cheap at a state school or you are on your own (plus whatever financial aid a private college gives you). Sounds good to me.
Except...
...a "state school" isn't exactly cheap these days. UMass Amherst is $14,596 per academic year for in-state tuition, plus $6,061 per academic year for room. What do you think it'll be in 18 years?
This "solution" is backwards. We need to rethink access to and funding for education.
What exactly
Is a "reasonable" level of funding for public education? Boston spends over $1 billion a year on education, that's 40% of its overall budget. What's the correct level for you? 50%? 80?
College
The grownups are talking about college.
Spending? Try INVESTMENT in tomorrow's economy - the one that will ensure that you are taken care of in your elder years.
Yeah, I am a little confused
Yeah, I am a little confused on the logic. Say we have about 75,000 babies a year, so $3.75 million in these accounts each year. I get that we don't have to use them for college, we can use them for other accredited training programs, but it still seems like it would be better to focus that money on key populations, either investing more in K12 or maybe investing it for a scholarship source. Maybe the goal is just to help prod people into starting more 529s? But then if that was the case, they could do it with tax benefits. . . I'm befuddled. As usual.
$215,000 college degree? Please.
When I see a forecast of a $215,000 college degree, somehow I think of when Mitsubihi and Hyundai cars first came out. I'm not sure what they cost now but when they first arrived they were decent quality and dirt cheap. Many Americans rightfully felt, this is a good deal.
Farewell to Pontiac, Oldsmobile and many of the US brands.
An accredited college degree is an accredited college degree, regardless if Harvard or Bunker Hill.
I know there are "on-line" colleges but I'm very surprised nobody has come up with a guaranteed, low, on campus four-year tuition.
As one of the chain lawyers used to advertise "you'll get what's rightfully yours and that's that!"
The education racket wouldn't
The education racket wouldn't allow such a thing to exist. Wouldn't be accredited.
I think this is a great idea.
I think this is a great idea. I know $50 isn't much compared to future costs, but it may be the "thing" that encourages parents or guardians to tuck a little bit away. Anyone who has funded college for kids or themselves know every little bit will help. I look at it as a way to encourage savings plans for college while kids are quite young and college seems so far away (it isn't).
I did the MEFA many years ago, tucked a little bit away, couldn't afford too much, but it did pay for the first semesters books and other supplies. My little MEFA account helped and if I could've afforded to tuck more away years prior, I would've.
But that name? who thinks up these things? Do they ever say them out loud to themselves?
I've got this stuck in my head:
Michigan J. Frog: http://froggyeve.tripod.com/hello.html