Yea! Who knew? My friend, Jamie, suggested sometime last fall that I give this blog stuff a try. And it turns out I really enjoyed it. I'm sure I've driven someone out there crazy with my maniacal rants over such things as bad drivers, my mother and the crazy stuff my kids do. Sorry about that. Really. Now you know how my sisters feel.
On to the topic for today:
When my two older kids were in elementary school, there was incredible pressure in parental circles to buy into a state prepaid program for college. Here in Alabama, it's PACT, or prepaid Alabama college tuition. I think it is a 529 plan for those outside of Alabama. At the time this was the rage, I found myself in terrible financial trouble. I was divorced and struggling as a single mother. I sold my house and moved into a townhouse. I debated over putting some money in a PACT but chose to invest it instead, knowing I wouldn't have the monthly payments to keep up with like the PACT. A few years later, I remarried and moved into our current home. A few more years later, we had (who we now call) 4-yr old. We were pressured by people again to buy into a PACT when he was born. We didn't. We chose to put a little bit of money in an account for him, adding to it when we could. At the time, the economy was much better than it is now and we hoped it would accrue some interest over time.
As it turns out, fate was on our side. The PACT program is more or less a Ponzi scheme. It relies on people to invest in the program and make monthly payments while the interest is used to pay out to kids going to college. In essence, it relies on payments by parents who do not have kids in college yet to pay for the ones who are. The investment was supposed to yield more than they were paying out to college students. So what's happened is that the PACT fund has been halved due to investment economy issues and they aren't able to pay out to upcoming college kids. Now, I don't know about you, but I'd be so danged pissed I'd probably picket in Montgomery. My heart goes out to these parents. The money was not guaranteed by the state or anyone. I have no idea what happens next, but I am so thankful I didn't invest in this program. If you have such a program in your state, I urge you to check into this. It might be your friend or neighbor, but they need to know what is going on. Click here and here for The Birmingham News articles.
Finally, I'd like to say a big THANK YOU to the my readers and followers. I feel incredible excitement whenever I go to my blog and see comments. I really enjoy our new friendships.
Yours,
Beth
About Me
- bethbbk
- Where Gravy Is a Side Dish, United States
- Ever hear that everyone can do something well, especially with practice? Well.. my kids will tell you, my singing brings hands to ears and the neighbor's dogs wailing. In fact, I'm not good at a lot of things. I'm always looking for ways to make my life easier, cleaner, more organized and fun.
4 comments:
We have one of those plans here too but my ex never bought into it. he said he's rather the interest be ours and what would happen if they didn't go to college or who knows what. he put money in with Edward Jones and I guess it's doing fine because I've not heard any complaining and he's the type to complain. I hate that people put faith in something like that trying to do the right thing for their kids and get taken. It's just bad.
I love your blog. Looking forward to another 100 more.
Thanks, Cathy! I love reading your blog too!!! Personally, I can't wait for the "I graduated college...finally" edition.
XO Beth
Congratulations, Beth!
My day consists of: 1. going to the Bathroom. 2. Eating. 3. Reading you and Brandice's Blogs. When you both post, it feels like I am getting dessert. WOOO!!
Love you!
Love you too!!!!! :)
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