Ed Bove's College Planning Blog

What do Hurricane Irene and the College Process Have in Common?

It's simple: They both cause people to panic and rush around like lunatics!

Here is when that revelation struck me.  I was in Home Depot this morning to pick up a quick item, and the place was jammed!  When I got inside, I saw a long line of people with carts leading to the customer service booth. I was wondering what they were waiting for.  Then I overheard one of the managers saying that they were all waiting for the delivery truck to arrive with a new shipment of generators.  He was walking up and down the line of people telling them they would get them on a first-come, first served basis, and he couldn't promise there would be enough for everyone.

I walked away shaking my head and I thought to myself: "If they needed a generator, they could have easily gotten one at any time.  Why did they wait until the day before a hurricane hits to try to get it?"

And then it dawned on me: I could be asking the same question about parents dealing with the college process.  They've had 17 years to save up for their children's college education and formulate a plan for dealing with the process.  But just like the people in line waiting for the generators, they waited too long!!!  What would have been easily attainable before, is now going to take a lot of tough work and last-minute planning.

Parents who attend our free college planning workshops often ask me: "Is it too early for me to start planning?"  My answer is: "It's never too early!"

People should be a lot more concerned about being too late!  That's when they end up in long lines hoping for a generator -- or a miracle that will help them pay for college.

 
By the way, I know it's not a very good shot, but this is a picture I took of the folks waiting in line this morning.  I hope none of you are among them when college time comes around.

Is The Stock Market Roller Coaster Ride Making You Sick?

Just when you thought it was safe to venture back into the stock market, it has recorded it's biggest losses since the Crash of 2008.  I can't tell you how many people I consulted with back then who shared horror stories about the massive hit they took in their children's college savings accounts.  And, as Yogi Berra would say, it's deja vu all over again!

Now don't get me wrong: I'm not saying there's no place for the stock market in our lives.  It can be a great place for long-term investing.  But short term, it's mercurial rises and falls can make or break your portfolio.  And if you have a student who is getting ready for college in the next year or two, can you afford to take the chance that another downturn could wipe out their college funds? 

With the skyrocketing cost of higher education, how can you possibly take the chance of losing any of the hard-earned money you've put aside for college?  Shouldn't you be looking for safer, more reliable vehicles as the time draws close?  I'd certainly say so.