Texas Tuition Promise Fund

From the burden of everyday living and building towards a retirement prior to hitting 50; our kids education is also a very high priority for us.

529 plan or texas tuition promise fund

ride a mutual fund that can cover everything or pre-paid only for tuition and fees at today's cost.

I think we are going with a 2 way approach of hitting both. First attacking the promise fund just because the stock market really isn't the best time to buy (but it will be in a couple months).

So I was wondering what happens if the money I put my money in and the fund doesn't perform well enough to cover the inflation of college tuition? Says the University is responsible if the fund under performs. That seems kinda weird but that's better than the promise fund having to pay the difference.

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"Launched last September, the Austin-based plan shifts the burden of unfunded liabilities to the universities. By contrast, the state had been responsible for any shortfalls in its old prepaid plan, the Texas Tomorrow Fund, which was closed to new enrollment in 2003.

”If tuition inflation is greater than the rate of return on the plans’ funds, the university is obligated to make up the difference,” said Kevin Dieters, director of the education opportunities and investment division in the Texas Office of the Comptroller of Public Accounts in Austin.

Indeed, the primary appeal of the Texas plan is that “the risk lies with the schools. There is no more state guarantee,” Mr. Raynor said.

“Texas is clearly a model. There has to be risk sharing or [prepaid plans] won’t work,” said Jacqueline Williams, executive director of the Ohio Tuition Trust Authority in Columbus, which closed its prepaid plan in 2004.

Since the Texas plan’s launch in September, more than 4,800 students have been enrolled, and approximately $100 million worth of contracts have been sold.

The plan’s fund is managed by OppenheimerFunds."

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Oprah and what can people really afford?

Watching the Oprah show with the wife, and actually had to laugh.

The show was about what you can really afford. This one student who just graduated had these stats:

$63,00 student loans ( which her mom takes care of now and nothing to be ashamed of. School is expensive. )

She makes $2,010 a month from her two jobs…yet spends $3,237 a month. She doesn’t have a job in her degree and instead 2 part time jobs.

Some of those expenses include $200 a month for gas; $810 a month in car payments, insurance and maintenance; $1,400 for a new bed; a $50 snowboard; and a $300 iPod. In the show it also said she spends $150/month on nails.

I don't get the bashing on a $50 snowboard or an ipod. I can totally see why she felt it justified buying a brand new civic and pimped out bed because as most women thing "I deserve it!". Hilarious. Living beyond her means. Paying the minimum on her credit card. $150 per month on nails. hahahahah!

Men don't have that issue but we spend our money also but not to make ourselves pretty, just to make us fat which generally are beer or electronics.

I don't see how this girl graduated from college and didn't want to pursue a job in her degree and instead works 2 part time jobs one being at Starbucks. Are you serious? She's $1,227 in the hole every single month and that is before she even gives to tithing or the poor. Wait. She is the poor!

She is living beyond her means yet lives it up with her "rich" friends. If this is common for most people there has got to be a problem right?

Suze Orman recommends 8 months of non-retirement in your savings account. Just in case you lose your job you have enough to live on. How many people have 8 months to live on right now in their bank without touching their retirement fund? Sad times.

So the girl sells her car and walks to work until she can find a job that uses her degree. Good girl! Main reason she didn't get a job that paid better, laziness. Wow!

At least she is changing her ways. It bothers me that people who are in serious debt actually never shop for sales or clip coupons. Are you serious?

Shop your utilities around, cancel sat/cable, stop drinking alcohol, rent movies for $1, and many others. The main thing I hear from people is that they are need more money but are closed minded to how to get more money. The combination of smarter shopping and saving will go a long way. Seriously, if you have a baby and know for sure you need a ton of diapers why buy them one at a time full price at the drug store or gas station down the street?

Fatwallet alone I’ve cashed out over $600 from buying diapers and other kids stuff like wipes. I contribute 90% of that to Jessica’s awesome knowledge of saving on daily consumable items.

Remember, 8 months. That is the goal. This is possible to do and you can still give to the poor and your church. Be determined to get on track and you will. Just think, "Do you really need it?".

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