Title: $350K Portfolio Not Enough? See If You're Really Ready for $600K College Bills. Tagline: Can a 7.8% Investment Return Cover $150,000 in Future College Costs? Problem: Mark and Sarah, both 45, are high-earning professionals with a combined income of $450,000. They have three children, ages 12, 10, and 8. College is looming, and they anticipate needing $50,000 per year, per child, for four years – a total of $600,000. They currently have $350,000 invested in a diversified portfolio. Mark insists the portfolio is yielding a steady 7.8% annually. Sarah is skeptical, worrying that inflation and hidden fees are eroding their actual returns, and that the 7.8% figure doesn't account for taxes, either. They need to know if that 7.8% return, after taxes and inflation, is actually sufficient to cover the projected $150,000/year college costs when the time comes. They also worry about the impact of capital gains taxes when they withdraw the funds for college. Solution: By using the Rate of Return Calculator in conjunction with the Tax Equivalent Yield Calculator, Mark and Sarah can determine the after-tax equivalent yield of their investments. They can then realistically project how much their portfolio will grow, taking into account the effects of inflation (a roughly 3% average annual inflation rate) and capital gains taxes (assuming a combined federal and state rate of 20%). This allows them to ascertain if their current investment trajectory is sufficient to meet their children's college expenses or if they need to adjust their investment strategy or increase their contributions. ROI: By uncovering that their actual, after-tax, inflation-adjusted return is closer to 4.5%, Mark and Sarah realize they are currently on track to have only about $520,000 available when college bills arrive. This $80,000 shortfall prompts them to increase their annual contributions by $10,000 and reallocate a portion of their portfolio to slightly higher-risk (and higher-potential reward) investments, positioning them to comfortably cover their college expenses. They also identify $2,000 annually in hidden fees they were unaware of, saving them $8,000 over four years by switching investment providers. Description: Use this calculator to determine if your current investment strategy will meet your family's future education goals. Don't leave your children's future to chance; see if your portfolio is truly on track. Category: Lead Gen