WILL YOU GIVE YOUR KIDS A CHANCE  !!!!                                    

                       Five Facts You Need To Know

Fact # 1  The "Have's" and the "Have Nots"

The gap between the rich and poor is growing rapidly across the united States. In 1994, for the first time since such records were kept, the richest 20% of U.S. households received a greater share of national income than the middle three-fifths combinede. th bottom 40% were worse off in inflation-adjusted terms in 1993 than similarly situated people two decades earlier. (Source: U.S. Dept.of Labor).

Fact # 2  A College Education Is The Difference.

Earnings of full-time workers who have a college degree continue to accelerate faster than those with just a high school diploma. in 1979, the average college graduate earned 49% more a year on average than a worker with only a high school diploma. By 1994, the earnings gap had widened to 89%. Each year of formal schooling adds 5% to 15% to annual earnings later in life. ( Source: U.S. Dept. of Labor)

Fact # 3  College Costs Are High And Rising.

Today, the average per year cost for a student attending a 4 year, in-state university is about $10,500 per year. This cost included in-state tuition, books, room and board. Here are the minimum costs rising at 9% per year.

Now               Future 5 Years         Future 10 Years       Future 15 Years

$42,000            $64,600                    $99,400                   $152,900

Fact # 4    You Have Four Choices.

1.  Pay college costs out of ordinary income. Add 25% to 30% to costs for taxes.

2.  Kids work to pay part of costs. Kids take longer to graduate, higher drop-out rate.

3.  Student Loans. College graduate starts out life deeply in debt.

4.  Pay college costs out of assets. Buy a rental property that will be free and clear.

Fact # 5   The Easiest Way To Pay For A College Education Is by Buying A Rental Property With A 15 Year Loan.

Here's the equity created in a $200,000 rental property with a 20% down payment.

Equity Now         5 Years         10 Years         15 Years

 *$40,000             $78,300         $130,100         $200,000

**$40,000             $133,600       $255,900         $415,700

* Assumes no increase in property value  ** Assumes 5% appreciation

equity appreciation figures approxmiate.