Posted on: 10-11-06 17:58:49
Some stats on networth of US residents
http://allthingsfinancialblog.com/2006/10/09/how-does-your-net-worth-compare/
You can compare your networh to actual data on http://www.networthiq.com" rel="nofollow">LINK
In general the rule of thumb is take your age and multiply by your salary and divide by 10. That should be your net worth ideally. I read this somewhere do not remember where.....
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I have only 2 cents to contribute, not a cent more, not a cent less ;-)
posted in a separate thread.
Hi,
I am the one who posted originally, Great input from everybody.
Stay focused on Wealth not year to year earning and spending. Net worth is All your Assets minus All your Liabilities = Net worth. Relate that to India, USA and Canada. Where does one fit in as a Lower, Middle or Upper Class.
Ultra rich probably do not have time to visit Internet as they may be busy tanning their skin in Bahamas. Great discussion may be moderator may like to have this as a poll.
Garvo,
The ($100K+) education figure is not meant to scare..........
$200 per month recurring deposit with interest rate of 6% for 12 years, for 12 years (grade 1-grade 12) would be $42,030.
If you save through RESP, add another $400/year of CESG contribution for 12 years which compounded at 6% is gong to generate another $6747.
So the grand total for 12 years is $ 48,777.
I have assumed a return rate of 6% which is what most banks use in their calculation; if you use conservative investments like CDs, the savings interest rate is actually going to be much lower at about 3-4%.
I do not mean to discourage; I have 2 kids of my own! But misinformation is a dangerous thing.
$50K in 20 years from now may be just be enough for a community college but for a university 4 year undergraduate degree, I don't think so....
That is why even today kids are either have to supplement it with scholarships, loans or working part-time...... You are welcome to check out the following statscan report; for year 2000, average universitiy bachelor student carried a debt of CAD20,000 and the community college student carried a debt of $13000.
http://www.statcan.ca/Daily/English/040426/d040426a.htm
For 2 kids you put an extra handful of rice for their food. TV would be entertainment for them .... TK
Wel TK it is obvious that you dont have children as yet .... well at least grown up ones. Handful of rice .... god bless the kids ... just there pizza and burger eating binges can send your calcualtions off. Also what you have not factored in is toys.... with kids a must & quite an expensive preposition. Apart from this clothes & shoes ... TK you can wear a pair of shoes for two years but your kids will go through a couple of pairs at least every six months, cause they grow.
Quote:
Originally posted by rashmig
Garvo,
The ($100K+) education figure is not meant to scare..........
$200 per month recurring deposit with interest rate of 6% for 12 years, for 12 years (grade 1-grade 12) would be $42,030.
If you save through RESP, add another $400/year of CESG contribution for 12 years which compounded at 6% is gong to generate another $6747.
So the grand total for 12 years is $ 48,777.
I have assumed a return rate of 6% which is what most banks use in their calculation; if you use conservative investments like CDs, the savings interest rate is actually going to be much lower at about 3-4%.
I do not mean to discourage; I have 2 kids of my own! But misinformation is a dangerous thing.
$50K in 20 years from now may be just be enough for a community college but for a university 4 year undergraduate degree, I don't think so....
That is why even today kids are either have to supplement it with scholarships, loans or working part-time...... You are welcome to check out the following statscan report; for year 2000, average universitiy bachelor student carried a debt of CAD20,000 and the community college student carried a debt of $13000.
http://www.statcan.ca/Daily/English/040426/d040426a.htm
I appreciate your calculations. Community colleges are suppose to be within you community and they are suppose to be cheaper (and that is why the name) They can't be expensive. My daughter goes to University right now, she lives on campus and the total cost per year is 15K. So yes if you project this number it will definitely reach 100K+ in 12 years.
Now looking at the same thing differently. There are loans, they work part time and there are bursaries. And there are scholarships.
I met one person who said one should not go for RESP. When I asked why, he said, if you have RESP, your kid will not get OSAP, and OSAP makes more business sense, as the interest rates are much lower and installments are flexible etc. Rather you invest the money into something else. Well it was his standpoint. I didn't agree with him.
The typical tuition cost in Ontario is about 6K/year. There are lots of kids goes to campuses in Toronto and so they do not have to pay the residence cost - so the tuition fees is what most of the people look at as a compulsory cost. Others can be adjusted.
Also those live on-campus, after first year they go for private accommodation and the sharing cost of living/eating reduces to $4000 a year (as compare to $8000 on campus)
Thinking right now for getting 100K at the end of 12 years is a good thing - but thinking too hard is not. As a new immigrant, right now you may not have savings money, but end the end of 12 year for sure you will have.
Unless your kid go to Harvard or similar universities with tuition fees alone 40K+ a year, it should be easier.
BTW, This site is created and in existence for information and not for misinformation
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A Proud Indian Canadian
