Investing in Stocks or education

**snafu** · 09-21-2014, 01:31 PM

Why is this an either, or decision? A little background would be needed. How did you accumulate the sum contributed? How much has it gained over the year[s]? What program are you taking? What are employment opportunities in your community? Where are you willing to move to capture employment? Do you have a wife/SO supporting your endeavours?

What are you paying in tuition per semester? What are your other school related costs? What are your day-to-day living expenses? Are you making car payments? Do you use revolving credit? Are you working part-time? If you borrowed for school, private? government? at what rate?

...sorry, so many questions

**wallaceiii** · 09-21-2014, 02:43 PM

The sum has grown over time- I worked for a few years in real estate before deciding to go back to school and this is what I have been able to sock away. I don't actually know the initial balance because I added to it over time and everything is set to automatically reinvest. I am in dental school, I don't perceive employment being a problem after school. I do have a wife who works (and a baby who doesn't!) so we are able to live without having to borrow any money besides tuition.

Tuition and fees are around $25,000 per semester, so $50,000 a year. No other school related costs that I am borrowing for. We don't have any car payments. We use a credit card for all expenses but pay it off monthly. We do have a mortgage, in addition to 2 rental properties that generate a small amount of cash flow. I have loans through the government that are unsubsidized. The first loan was at 5.4%, the second is at 6.2%.

**dczech09** · 09-21-2014, 04:51 PM

Assuming that you have 30 or more years until you expect to retire, I would definitely pull the money out and use that to fund college. Getting through college (not to mention dental school) without debt will put you in an amazing position!

You are right to feel that employment will not be an issue. Dentists are in high demand.

You are going to pay for your dental school tuition (and other costs) no matter what. Whether you pay it now, or later (with interest), is up to you.

Some people would tell you that you could earn more by investing than interest you would pay on student loans, however that ignores risk. I would absolutely take the cash and use it to pay for college. Avoid student loans if you can!

**JulieAlbright** · 09-22-2014, 03:42 AM

So you have approximately $100k to $125 left of tuition to finish your degree? (2/2.5 years) Even with using your $65k you are still looking at borrowing $50k or so in Student Loans?

I'd pull it out of the market and use it to pay tuition. Even with a dental degree 6 figures of student loan debt can really put a strain on a household budget.

**bjl584** · 09-22-2014, 05:23 AM

Originally posted by wallaceiii View Post

I currently have about $60k invested in the markets. I am in my second year of a 4 year graduate program which costs about $45k a year. Should I dump my stock market holdings and pay for as much of my school as possible with cash? Or should I keep my money in the market and let it grow and then pay off my school debt with my salary when I graduate?

I'd be inclined to keep the investments. You'll most likely come out ahead so long as you are in school for something that is marketable and will earn you a good income.

**dczech09** · 09-23-2014, 05:14 PM

My apologies. I misread when you said your schooling would cost $45k PER YEAR. Still does not change may decision; liquid your investments, keep maybe a small amount for emergencies, and put the rest towards your education. Get out of school with as little in debt as possible!

**YolandoAmaya** · 10-09-2014, 11:34 PM

I think investing in education is better than stock investments. The need of education programs are increasing day by day and education is the only thing that never go down. It always grow up.

**ZERisTHE1** · 10-09-2014, 11:44 PM

Being educated is important, but getting educated isn't the way to have a great life anymore.

The idea of how things work are, go to college, graduate, get a great job, and live happily ever after. This was all fine and dandy 20 years ago, when this is how it worked.

It isnt east to get a great job anymore. I'm a firm believer in investing in myself. I have educated myself on the ways to earn substantial incomes with out schooling, or a 9-5.

I say invest in stocks or whatever else it is you want to do in life. One thing though, make sure you do all your homework on what you invest in. Don't just throw away a tuition on trying things out. Do your research, find some leaders and follow their moves.

Invest in yourself!

**jIM_Ohio** · 10-10-2014, 06:50 AM

Originally posted by dczech09 View Post

Assuming that you have 30 or more years until you expect to retire, I would definitely pull the money out and use that to fund college. Getting through college (not to mention dental school) without debt will put you in an amazing position!

You are right to feel that employment will not be an issue. Dentists are in high demand.

You are going to pay for your dental school tuition (and other costs) no matter what. Whether you pay it now, or later (with interest), is up to you.

Some people would tell you that you could earn more by investing than interest you would pay on student loans, however that ignores risk. I would absolutely take the cash and use it to pay for college. Avoid student loans if you can!

I would second this advice, minimize your debt so you have free cash flow when you begin working.

A good guideline is save 20-25% of your income
you don't have an income now, so minimize debt is a good philosophy

When you begin working, focus on saving a high percentage of income, and pulling money out now will look like a good idea 5 years later if you are saving a high percentage.

I don't think anyone regrets avoiding debt

**budgetingtech** · 11-09-2014, 09:29 AM

I think at this stage of life you should invest in education 'more'. Invest your savings even if they are too low for two reasons...you will not only learn to save but you will learn to invest as well.

Investing in Stocks or education