How to Afford Yale if Inflation Creeps Above 3%
Even without other price increases, elite university tuition already soars. The Yale Model can be your investment guide and help you pay for the kids’ college bills.
Green is the color of money and Ivy.
Photographer: Craig WargaThe Federal Reserve may say otherwise, but in our bones, we know inflation is here to stay. Restaurants are struggling to hire waiters who are holding out for higher pay; grabbing a beer is starting to pinch. In the red-hot U.S. housing market, even the cheapest homes are getting pricier. Last month, producers’ prices in China jumped by 6.8%, so it’s just a matter of time before the world’s largest exporter brings broader inflation to the American shore.
Three percent core inflation is not necessarily bad news for the middle-class wallet. Annual salary raises may be higher and — other than cash and gold — asset value often rises with the cost of living. But a person has to choose her investments more carefully, especially if she wants to do ambitious things, like send her children to elite private universities.