Timeline for How to equally split college fund between 2 children going to college 5 years apart?
Current License: CC BY-SA 4.0
12 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Apr 12 at 12:32 | comment | added | rtaft | Why do you have to give 50% now? I'm assuming it's 4 years of college, it's 8 years of total college with a 1 year gap between, not 5 years. Divide it into 8 equal portions and give one portion out per year, that way most of it continues to grow. As long as they understand and agree on it, they can't argue that it's unfair. The market could go the other way and the second child gets less. | |
| Apr 12 at 6:38 | comment | added | arp | If you have a yearly growth rate of 10% on your investment, you may want to look into having your children take out student loans and then figure out an equitable distribution of the fund after both have graduated. | |
| Apr 11 at 10:24 | answer | added | Prem | timeline score: 1 | |
| Apr 10 at 15:32 | comment | added | avid | There is no single solution that is objectively 'fair' here - there are too many variables and unknowns. The important thing, I suspect, is that A and B feel they have been treated equally. So you may wish to consider involving them in the conversation about how to implement the split. | |
| Apr 10 at 4:40 | comment | added | Gus | Great points, @JustinCave! | |
| Apr 10 at 4:34 | vote | accept | Gus | ||
| Apr 9 at 23:37 | history | became hot network question | |||
| Apr 9 at 19:36 | comment | added | Justin Cave | 1) It would be odd to have a college fund that you're starting to draw down invested aggressively enough to expect 10% annual returns. 2) Are you really trying to give both equal dollar amounts? Or equal purchasing power? If they both go to the same school with the same scholarships, $50k today might cover 2.5 years of costs while $50k in 5 years might only cover 1.5 years of costs. If equity is the goal, you'd prefer to cover 2 years of costs for each even if that means giving the younger child more nominal dollars. | |
| Apr 9 at 16:39 | comment | added | codeMonkey | Are you going to make more contributions to the fund after Child A starts school? | |
| Apr 9 at 15:52 | answer | added | D Stanley | timeline score: 40 | |
| S Apr 9 at 15:36 | review | First questions | |||
| Apr 9 at 16:25 | |||||
| S Apr 9 at 15:36 | history | asked | Gus | CC BY-SA 4.0 |