What’s the real value of a college degree in 2026? Is it just about the paycheck, or is there something deeper we’re missing in the ROI calculation?
In this Q&A episode, Joe and I tackle one of the most consequential financial decisions families face: whether college is worth the investment. An immigrant mother asks how to help her 14-year-old son evaluate degree programs purely from a financial perspective, which launches a nuanced discussion about earnings potential, career flexibility, personal growth, and the cultural paradigm shift happening around higher education.
We also hear from a listener who just quit his full-time job to start Coast FIRE and wonders whether he should take dividends as cash or keep reinvesting them. And we close with a deep dive into financial advisor fee structures, specifically, why the assets under management (AUM) model often costs more than it’s worth, and what alternatives exist for people who want fiduciary advice without the percentage-based fees.
Listener Questions in This Episode
Blanca asks: I’m an immigrant mother of a 14-year-old boy. I understand that college isn’t always the best financial decision anymore. How can I help my child evaluate whether an undergraduate or graduate program is a good investment? What factors should we consider to determine if a degree will be profitable over time? As someone who didn’t study in the U.S., I’d appreciate guidance and resources.
Brandon asks: I quit my job and started Coast FIRE in my 40s. I’m planning to draw down my taxable brokerage account to supplement my part-time income for the next 20 years. I’ve always automatically reinvested dividends, which creates a taxable event each year. Should I now start taking dividends as cash for more flexibility, since I’m taxed either way? I could use them as income or manually reinvest into funds that help maintain my target allocation.
Anonymous asks: I’ve heard you recommend working with a fiduciary financial advisor, but I’ve also heard you say you don’t like the AUM (assets under management) model. Can you elaborate on this? Are there certain companies you know of that we can check out without you advertising for them?
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Key Takeaways
The financial value of college varies dramatically by field—engineering, nursing, and accounting degrees typically offer strong ROI, while many liberal arts and general business degrees may not pay for themselves, especially when student debt is involved.
College provides value beyond just salary potential, including personal growth, expanded worldview, network building, and credential signaling that opens doors—but families should be honest about whether these benefits justify the specific cost of the specific school.
Taking a gap year or attending college at a slightly older age (after working or traveling) often leads to better outcomes because students have more maturity, clarity about their goals, and appreciation for the educational opportunity.
When drawing down a taxable brokerage account, taking dividends as cash (rather than auto-reinvesting) gives you control over rebalancing and can help you avoid selling shares during market downturns—you’re taxed on dividends either way, so there’s no tax disadvantage.
The AUM (assets under management) fee model creates a conflict of interest where advisors are incentivized to grow your assets and keep them invested, even when that may not serve your best interests—flat-fee or hourly advisors align better with client goals because their compensation isn’t tied to how much you have invested.
Resources
Afford Anything News Letter
Chapters
Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.
(0:00) Introduction
(1:36) Blanca’s Question: Is a college degree worth it?
(4:49) The cultural shift around college education
(7:30) Career paths that require vs. don’t require degrees
(12:00) Calculating the ROI on different college programs
(17:00) The value of college beyond financial returns
(20:00) Going to college at a later age
(27:14) Brandon’s Question: AUM vs. flat-fee financial advisors
(33:01) Anonymous’s Question: Should you take dividends as cash?
(36:07) Understanding fiduciary duty and fee structures
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