Killer College Funding Technique

There's an episode of The Simpsons where Homer and Bart are telling scary stories around a campfire. "And that is how much it will cost to send Maggie to college," finishes Bart as Homer shrieks at the top of his lungs.

Santo Rizzo, the chief executive officer of Rizzo Realty Group, a national real estate investment firm based in Chicago, has a solution. Rizzo Realty Group has invested in, developed, and marketed condo developments across the country for three decades.

You either want to send them to State U. at $16,000 per year or Princeton at $32,000 per year. (Let’s assume six percent inflation.)

The traditional method would be to save $634 per month for 18 years to slowly pile up $136,944. With four percent interest you’d earn $63,056, giving you a total of $200,000. That’ll cover tuition, a car, books, and a little extra for spring break bail.

“Buy a one-bedroom condo for $175,000,” Rizzo says. “Put ten percent ($17,500) down. Closing costs will be about $2,500.”

That totals $20,000. With six percent appreciation for 18 years, you will earn $499,500. The loan balance (six percent interest over 30 years) will run $96,800, leaving you equity worth $402,700. That’s enough to send two kids to Princeton, buy them both cars, books, and bail out their entire fraternity from the Mazatlan jail.

For more information, go to rizzorealtygroup.com.

Btw, there is only one way to inflation-proof your retirement: Real Estate Ownership.