View Single Post
Old 06-18-2011, 07:14 PM
Admirals Club Admiral's Club Member
Join Date: Mar 2011
Posts: 551

If you consider the implied discount rate of the prepaid plan, IE what you pay in todays dollars for tomorrows tuition, you can beat it in zero coupon investment grade municipal bonds. With taxable equivalent yields in excess of 9%, you are paying well below 5oc today for a dollar in 15 to 20 years. An alternative, I guess. We moved to Florida recently and the differential payment made the lump sum very costly, so I have been buying odd lot zeros when I can.
neald is offline