TK Journal 2020-05-22

Hi Cam,

I took the Scott Pape, Bare­foot Investor table a few steps fur­ther to show what the returns would be using the QAV 19.5% com­pound rate instead of the 10% for the index.

Jen sug­gest­ed I also cal­cu­late some­thing which I have talked about for a while, invest­ing pri­vate school fees in the mar­ket instead of pay­ing for an edu­ca­tion.

I did this cal­cu­la­tion using aver­age fig­ures from the Good Schools web­site for fees.

The head­lines write them­selves.

If you are a teenag­er, sav­ing $5000 per year for 10 years and invest­ing it using QAV means that you would have $92m at age 60.

Send­ing your kids to gov­ern­ment schools and invest­ing the pri­vate school fees in an index fund means that by age 60 you would have $24m, using QAV you would have $1.58 bn. These fees are for Catholic schools.

Using Inde­pen­dent school fees, an index return would give $47m at age 60, or $3bn using QAV.

So send­ing your kid to a pri­vate school costs a QAV investor between $1.58 bil­lion and $3 bil­lion.

—-

—-