Hey folks! In lieu of this week’s Tip of the Week, I instead want to offer some thoughts on the recent college admissions scandal. Now, I’m not discussing the politics of the scandal, you can get your favorite political viewpoints from entertainment outlets such as the New York Times, Fox News, or the Atlantic. Instead, I want to discuss this topic from a financial planning perspective.
Obviously, the scandal centers around wealthy families cheating and bribing their children’s way into socially desirable schools. While the quality of the education provided by those universities has been questioned more and more in recent years, the value of the paper that they give graduates remains high for many reasons.
And parents want their children to attend these schools to gain the advantage of that piece of paper. It opens doors and potentially increases their income over their lifetime… in the same manner that any college degree, in theory, increases income potential over a high school diploma. That certainly depends on the degree, though.
What frustrates me in all of this is what’s the point of wealth? These families have tons of money… however they acquired it… why continue to participate in the rat race?
For me, even though I build financial plans around specific goals, the ultimate outcome of financial planning is the independence offered by the resulting wealth and proper management of that wealth. It’s the ability to say, I don’t need to fight for that promotion, or I no longer need to work 60 hours per week… or I don’t need to live in this expensive city with miserable traffic and I can move to a much quieter, more relaxed place. Or… in this case… I can provide my children and grandchildren with a quality education so that they are better, well-rounded people. Contrast that statement with “I need to make sure my kids get the best piece of paper so that they can make more money.”
With a proper plan, we can provide the funds to give your children a good education, regardless of whether or not they get a piece of paper. And you can leave a legacy that allows them to put that education to work, not just chase the highest paycheck.
I’m happy to hear your thoughts on this topic, thought I’ll add that I’m not really interested in a political debate… rather let’s talk about the financial planning aspects.
If you want to discuss this… or any other financial topic in more detail, or if you want to get started on your financial plan, send me a message using the info posted in the credits. Until next time!
Thanks for watching!
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Remember, the topics discussed in this video are for informational purposes only and that past results do not guarantee future performance. If you would like to discuss your financial situation, please email me at Derek.Merkler@Parsonex.com.
Advisory services offered through Parsonex Advisory Services, Inc., 8310 S.Valley Hwy, Suite 110, Englewood, CO 80112. 303-662-8700.