What kind of (financial) professional do I need to see for advice?
January 21, 2015 10:15 AM Subscribe
We are trying to decide whether to stay in our home and send our kids to private school, or to move. We need some help to run the numbers and different scenarios.
We own our home but it's in a crappy school district. Let's just it out of the way right now that attending our home school district is absolutely not an option.
We have been trying to determine for some time what scenario would put us in the best financial position. We have run the numbers ourselves but just can't seem to come up with results that say Option A is clearly preferable financially to Option B. We need an independent 3rd party with a fresh perspective to talk us through it.
What sort of professional should we be talking to? I'm afraid a CFP or a RE agent will be more focused on selling us something rather than giving us a truly unbiased opinion. Appreciate any input. Bonus points for someone who is in LA or who is willing to work with us remotely.
We own our home but it's in a crappy school district. Let's just it out of the way right now that attending our home school district is absolutely not an option.
We have been trying to determine for some time what scenario would put us in the best financial position. We have run the numbers ourselves but just can't seem to come up with results that say Option A is clearly preferable financially to Option B. We need an independent 3rd party with a fresh perspective to talk us through it.
What sort of professional should we be talking to? I'm afraid a CFP or a RE agent will be more focused on selling us something rather than giving us a truly unbiased opinion. Appreciate any input. Bonus points for someone who is in LA or who is willing to work with us remotely.
While I can't recommend a CFP, I can recommend doing research on the schools you would want to send your child to and the financial aid available so you can bring that information to the planner.
I grew up in Orange County, where my mom did combinations of the cheaper house / private school route and renting in a nicer district, and I know that was a lot better for her when I went to private school, given the aid we got and variously the fact that I went to an independent Catholic school (where maybe half the students were actually Catholic) and went to schools where before/after care was included in the price.
Going to private school was also better for me given the quality of the teaching / class size, even when compared to well-ranked schools. For other people, making more money back on the house might seem better than "throwing away" tuition money, especially if they are paying full price. So I guess I am also saying you might want to consider other values you have that are not just financial. And maybe you have.
posted by dame at 10:46 AM on January 21, 2015
I grew up in Orange County, where my mom did combinations of the cheaper house / private school route and renting in a nicer district, and I know that was a lot better for her when I went to private school, given the aid we got and variously the fact that I went to an independent Catholic school (where maybe half the students were actually Catholic) and went to schools where before/after care was included in the price.
Going to private school was also better for me given the quality of the teaching / class size, even when compared to well-ranked schools. For other people, making more money back on the house might seem better than "throwing away" tuition money, especially if they are paying full price. So I guess I am also saying you might want to consider other values you have that are not just financial. And maybe you have.
posted by dame at 10:46 AM on January 21, 2015
I completely agree that you should be wary of folks who have things to sell you. Especially RE agents. Good for you for seeing that!
We have run the numbers ourselves but just can't seem to come up with results that say Option A is clearly preferable financially to Option B.
Have you considered the possibility then that these results you've found could perhaps mean BOTH options are equally valid, and neither will put you in a per se "harmful" financial position? That either choice could very well be a livable one for your family?
All things being equal, I'm a fan of avoiding crappy local schools. (I fully believe you that your home district is not an option.) I'm also a fan of not moving houses. Staying put usually makes the most financial and logistical sense but YMMV.
Why not post your situation and numbers as an Ask or on some personal finance forum?
posted by hush at 10:49 AM on January 21, 2015 [2 favorites]
We have run the numbers ourselves but just can't seem to come up with results that say Option A is clearly preferable financially to Option B.
Have you considered the possibility then that these results you've found could perhaps mean BOTH options are equally valid, and neither will put you in a per se "harmful" financial position? That either choice could very well be a livable one for your family?
All things being equal, I'm a fan of avoiding crappy local schools. (I fully believe you that your home district is not an option.) I'm also a fan of not moving houses. Staying put usually makes the most financial and logistical sense but YMMV.
Why not post your situation and numbers as an Ask or on some personal finance forum?
posted by hush at 10:49 AM on January 21, 2015 [2 favorites]
I'd meet with a CPA, ask your friends for recommendations.
Moving is expensive and if you like your house, and all things being equal, do the easiest thing.
But, a CPA should be able to help you walk through this, with taxes added, as opposed to just numbers on a balance sheet.
I will say this. If you stay put, and you need to re-think private school due to changes in finances, you always have the option for Charter schools if push comes to shove. Or homeschooling, or on-line schooling. You have that flexibility.
But a CPA you pay by the hour, who can give you sound financial advice.
posted by Ruthless Bunny at 11:04 AM on January 21, 2015 [1 favorite]
Moving is expensive and if you like your house, and all things being equal, do the easiest thing.
But, a CPA should be able to help you walk through this, with taxes added, as opposed to just numbers on a balance sheet.
I will say this. If you stay put, and you need to re-think private school due to changes in finances, you always have the option for Charter schools if push comes to shove. Or homeschooling, or on-line schooling. You have that flexibility.
But a CPA you pay by the hour, who can give you sound financial advice.
posted by Ruthless Bunny at 11:04 AM on January 21, 2015 [1 favorite]
How far away are the private schools you are considering and where are they in relation to your jobs? I know several people with unpleasant commutes because they have to get their kids to private school on one side of town and then get to their jobs on the other side of town. That might tip the balance one way or another.
And which districts are you aiming for? Manhattan Beach real estate prices are nuts because of the schools, but my friend's kids are in the nearby Redondo school district and they seem happy with it so far (and they didn't have to pay MB real estate prices for their house).
posted by mogget at 11:11 AM on January 21, 2015
And which districts are you aiming for? Manhattan Beach real estate prices are nuts because of the schools, but my friend's kids are in the nearby Redondo school district and they seem happy with it so far (and they didn't have to pay MB real estate prices for their house).
posted by mogget at 11:11 AM on January 21, 2015
A fee based financial planner is who you'll want to talk to.
posted by Nimmie Amee at 12:24 PM on January 21, 2015
posted by Nimmie Amee at 12:24 PM on January 21, 2015
If you buy a more expensive house in a better school district, that money is equity that you will probably recoup (mostly - apart from one-off real estate fees and so on) when you eventually sell the house.
If you send the child to private school, the annual fees are not money that you can ever get back.
So if I were you, I'd be comparing the amount of INTEREST you would pay on the new mortgage with the annual private school fees, as those two amounts are the money you are basically losing forever.
Then decide whether the more expensive option, when calculated like that, is actually better than the other in some way (convenience, educational opportunities) that justifies its extra cost.
posted by lollusc at 4:57 PM on January 21, 2015
If you send the child to private school, the annual fees are not money that you can ever get back.
So if I were you, I'd be comparing the amount of INTEREST you would pay on the new mortgage with the annual private school fees, as those two amounts are the money you are basically losing forever.
Then decide whether the more expensive option, when calculated like that, is actually better than the other in some way (convenience, educational opportunities) that justifies its extra cost.
posted by lollusc at 4:57 PM on January 21, 2015
This thread is closed to new comments.
posted by heathrowga at 10:33 AM on January 21, 2015 [1 favorite]