Help us to retire in 10 years
Help us to retire in 10 years
Age: 43 and 40 and two elementary aged kids
Income: 200k and 95k, 18k in net rental income which includes 12k of payment to principal.
Debt: Mortgage: 500k on a Home worth ~730 k at 2.5% 30 year.
80k on Rental worth ~350k: 7 year remaining at 3%
Life insurance: term insurance that ends at his 60: 2M, her: 300k plus 4k monthly payment as survivor benefit from the pension plan.
Annual expense : 75k, MCOL
Tax Filing Status: MFJ
Tax Rate: 22%
Total Retirement savings: ~1M
Taxable 75k
His 401k 450k
His Roth IRA 42k
His HSA : 40K
Her 403b : 140K
Her 457B : 132K
Her Roth IRA : 50k
529 for both kids : 30k
Index funds with 70:30 stock and bonds
New annual Contributions : 150k
$22.5k his 401k + 8k employer match
$24k his megabackdoor roth (capped at 12%)
$22.5 her 403b
$22.5k her 457
13k His and Her Backdoor Roth
$20k taxable (for retirement)
$8k: 529
12k: taxable for college
Planning to save 200k (100k each) in next 10 years for college using 529 and taxable. If college costs more than this, kids will take loans. We can help them to pay down if our retirement is on track.
Goal is to retire in 10 years for her and 12 years for him. It depends a lot on next 10 years contributions. A lay off or a pay cut or poor market could affect the target, then we will have to work more years.
Expected Annual expense including tax during retirement: 130k.
Him and all dependents will be eligible for Retiree health coverage through his employer.
Here is the plan to spend down retirement savings:
At her age 50 to 52
His income will cover all the expenses
at her age 52 to 59
We plan to withdraw from her 457 followed by his 401k plan
Balance of 457 plan 52: 600k
Balance of 457 at 55.5 : 0k
Balance of 401k at 55.5: 2M
Balance of 401k at 59: 1.5M
At her age 59 to 62
She will be eligible for 50k pension with non-cumulative COLA at 59.
We would need to withdraw only 80k these years from his 401k
Balance of 401k at 59: 1.5M
Balance of 401k at 62: 1M
At her age 62 to 67:
He will be eligible for non cola pension of 45k. We would need to withdraw only 35k this period
Balance of his 401k at her 62: 1M
Balance at 67: 1M with investment gains
At her age 67 onwards:
he will get 35k Social security. We won’t need to withdraw anything more until RMD
We will still have 2M in 401k and 403b, Another 2M in taxable and Roth and rental house to give to kids
Is this doable? Any flaw in our plan? Any better spend down plan? Thanks
Income: 200k and 95k, 18k in net rental income which includes 12k of payment to principal.
Debt: Mortgage: 500k on a Home worth ~730 k at 2.5% 30 year.
80k on Rental worth ~350k: 7 year remaining at 3%
Life insurance: term insurance that ends at his 60: 2M, her: 300k plus 4k monthly payment as survivor benefit from the pension plan.
Annual expense : 75k, MCOL
Tax Filing Status: MFJ
Tax Rate: 22%
Total Retirement savings: ~1M
Taxable 75k
His 401k 450k
His Roth IRA 42k
His HSA : 40K
Her 403b : 140K
Her 457B : 132K
Her Roth IRA : 50k
529 for both kids : 30k
Index funds with 70:30 stock and bonds
New annual Contributions : 150k
$22.5k his 401k + 8k employer match
$24k his megabackdoor roth (capped at 12%)
$22.5 her 403b
$22.5k her 457
13k His and Her Backdoor Roth
$20k taxable (for retirement)
$8k: 529
12k: taxable for college
Planning to save 200k (100k each) in next 10 years for college using 529 and taxable. If college costs more than this, kids will take loans. We can help them to pay down if our retirement is on track.
Goal is to retire in 10 years for her and 12 years for him. It depends a lot on next 10 years contributions. A lay off or a pay cut or poor market could affect the target, then we will have to work more years.
Expected Annual expense including tax during retirement: 130k.
Him and all dependents will be eligible for Retiree health coverage through his employer.
Here is the plan to spend down retirement savings:
At her age 50 to 52
His income will cover all the expenses
at her age 52 to 59
We plan to withdraw from her 457 followed by his 401k plan
Balance of 457 plan 52: 600k
Balance of 457 at 55.5 : 0k
Balance of 401k at 55.5: 2M
Balance of 401k at 59: 1.5M
At her age 59 to 62
She will be eligible for 50k pension with non-cumulative COLA at 59.
We would need to withdraw only 80k these years from his 401k
Balance of 401k at 59: 1.5M
Balance of 401k at 62: 1M
At her age 62 to 67:
He will be eligible for non cola pension of 45k. We would need to withdraw only 35k this period
Balance of his 401k at her 62: 1M
Balance at 67: 1M with investment gains
At her age 67 onwards:
he will get 35k Social security. We won’t need to withdraw anything more until RMD
We will still have 2M in 401k and 403b, Another 2M in taxable and Roth and rental house to give to kids
Is this doable? Any flaw in our plan? Any better spend down plan? Thanks
Last edited by Starfalls on Mon Mar 27, 2023 7:20 am, edited 5 times in total.
- AnnetteLouisan
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Re: Help us to retire in 10 years
Is it term life or whole or universal life?
Re: Help us to retire in 10 years
It is term insurance that ends at his 60. I will update the original post. Thanks
- retired@50
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Re: Help us to retire in 10 years
I'm confused by the red lines above.Starfalls wrote: ↑Sun Mar 26, 2023 5:51 pm Here is the plan to spend down retirement savings:
...
At her age 59 to 62
She will be eligible for 50k pension with non-cumulative COLA at 59.
We would need to withdraw only 80k these years from his 401k
Balance of 401k at 59: 1.5M
Balance of 401k at 62: 1M
At her age 62 to 67:
He will be eligible for non cola pension of 45k. We would need to withdraw only 35k this period
Balance of his 401k at her 62: 2M
Balance at 67: 2M with investment gains
Somehow, the 401k doubles from 1M to 2M overnight...???
Since only one of you has a 401k, I assume it's the same account, but then you don't ever mention spending the 403b...???
I suspect something needs to be reworked or a typo corrected.
Regards,
Last edited by retired@50 on Sun Mar 26, 2023 8:24 pm, edited 1 time in total.
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Help us to retire in 10 years
That is a typo. I have corrected original post.
Re: Help us to retire in 10 years
Your kids will have very limited ability to borrow money to pay for college. Right now, loans available to students (not parents) are only roughly $6,000/year.
Look, if you want to limit the amount of money you’ll pay for out-of-pocket for college that’s your decision. But why would you plan your savings/investments/income around leaving your kids $4 million when you are dead, but expect them to take out college loans under certain circumstances?
It’s important to save and invest because the future is uncertain. However, you both will probably have significant pensions, plus you’ll get Social Security.
And why are your annual expenses today less than you expect them to be in retirement even though you are supporting two kids now?
Take a step back and rethink. What if you saved for retirement only half of what you are now? Could you still meet your goals? What if you saved just half and the markets only returned half of what you expected?
Look, if you want to limit the amount of money you’ll pay for out-of-pocket for college that’s your decision. But why would you plan your savings/investments/income around leaving your kids $4 million when you are dead, but expect them to take out college loans under certain circumstances?
It’s important to save and invest because the future is uncertain. However, you both will probably have significant pensions, plus you’ll get Social Security.
And why are your annual expenses today less than you expect them to be in retirement even though you are supporting two kids now?
Take a step back and rethink. What if you saved for retirement only half of what you are now? Could you still meet your goals? What if you saved just half and the markets only returned half of what you expected?
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
Re: Help us to retire in 10 years
We would like to pay down entire education cost as soon as we can, not planning to leave them 4m without paying down the college expense. We don’t know if we will make it in next 10 years, therefor not planning on huge 529 savings. If everything works out, we could pay down tuition expenses from our savings as early as we can. Also kids will be entering college around the retirement . So we could always reassess college payments.
I am expecting more expense in retirement due to travel, inflation and uncertainty.
We will reassess the situation in 10 years and pull the trigger only if we are confident we can make it. We can work little more full time or part time that will also increase our pension payment.
Thanks for the feedbacks.
I am expecting more expense in retirement due to travel, inflation and uncertainty.
We will reassess the situation in 10 years and pull the trigger only if we are confident we can make it. We can work little more full time or part time that will also increase our pension payment.
Thanks for the feedbacks.
Re: Help us to retire in 10 years
For your own clarity, and so others can understand, it’s better to keep all expenses and income streams in 2023 dollars. Add in travel and maybe a cushion for unknowns, but if you assume, for example, 30% inflation in your retirement expenses estimates then it distorts comparisons.Starfalls wrote: ↑Sun Mar 26, 2023 8:07 pm We would like to pay down entire education cost as soon as we can, not planning to leave them 4m without paying down the college expense. We don’t know if we will make it in next 10 years, therefor not planning on huge 529 savings. If everything works out, we could pay down tuition expenses from our savings as early as we can. Also kids will be entering college around the retirement . So we could always reassess college payments.
I am expecting more expense in retirement due to travel, inflation and uncertainty.
We will reassess the situation in 10 years and pull the trigger only if we are confident we can make it. We can work little more full time or part time that will also increase our pension payment.
Thanks for the feedbacks.
Just like it is better to estimate portfolio change in terms of real growth, not nominal.
Good luck, and do some travel with your kids now.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
- retired@50
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Re: Help us to retire in 10 years
Still puzzled. No mention of the 403b. Are you using 401k as shorthand for all tax-deferred accounts?
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Help us to retire in 10 years
I am not planning to spend 403 at all unless I have opportunities for Roth conversion. I expect we will have 1M in 403b and 1M left over in 401k together making 2M at age 67.
Re: Help us to retire in 10 years
I am assuming that would be adjusted for inflation.
There is no one right answer to how much a parent should pay for college but the idea of having your kids take on student loans when you are retiring in your early 50s might be something to rethink.
Instead of putting a dollar value on it an alternate goal to consider might be to be able to pay for tuition, fees, books, and room and board at your state's flagship university.
I live a relatively less expensive state and you could not pay for all those at the state flagship university for four years with only $100K.
With your income you could likely pay the difference between your $100K goal and that just by delaying your retirement by a few months if nothing else. Your kids will know that and it could make for some awkward family dynamics when you are vacationing somewhere expensive while they are filling out student loan forms.
If your kids wanted to go to a more expensive schools then you could let them know that they need to figure out how to pay for the difference with scholarships or loans.
People often worry about their kids wanting to go to an expensive university but I have also seen the opposite happen. Many college age kids are acutely aware of the risk of student loan debt and some may undershoot instead of risking taking on that debt. For example instead of going to a well regarded flagship university they might choose to go to a community college or less well regarded local university where they can live at home.
Re: Help us to retire in 10 years
Just my opinion here ... but with a $295k combined income, it would be pretty much selfish to say "let the kids take educational loans, I want to retire in 10 years no matter what" ...
There's something to be said about implied obligation to the next generation ... "make the world a better place than the state you found it to be"
By no means overextend yourself, but if you can comfortably meet the anticipated educational expenses by delaying your intended retirement by another 4 to 5 years (and you can!), if it lets your kids be debt-free from college costs, you should delay.
For what it is worth: I am older than 50, my spouse younger by 5 years and younger than 50, and two kids (twins) entering college next year. We have about the same income (actually less; it is $160k + $100k). We are (or at least I am) postponing retirement until the kids are out of college, we do not expect any financial aid, and we expect to let them graduate debt-free. State flagship university costs $35k per year for an Engineering degree including room and board; so that's $35 * 4 + $10k or $20k buffer ... so budgeting about $350k.
There's something to be said about implied obligation to the next generation ... "make the world a better place than the state you found it to be"
By no means overextend yourself, but if you can comfortably meet the anticipated educational expenses by delaying your intended retirement by another 4 to 5 years (and you can!), if it lets your kids be debt-free from college costs, you should delay.
For what it is worth: I am older than 50, my spouse younger by 5 years and younger than 50, and two kids (twins) entering college next year. We have about the same income (actually less; it is $160k + $100k). We are (or at least I am) postponing retirement until the kids are out of college, we do not expect any financial aid, and we expect to let them graduate debt-free. State flagship university costs $35k per year for an Engineering degree including room and board; so that's $35 * 4 + $10k or $20k buffer ... so budgeting about $350k.
Re: Help us to retire in 10 years
I think it is totally fine for a parent to say what they are willing to pay for a kids education. I think $100K will pay a four year degree at a top tier in state university in many places. For example at the University of Colorado School of Engineering each semester is about $7500 right now. Books and room and board at another $10K ($25K a year all in) is a bit thin, but, summer jobs or scholarships can help a lot. I don't think they need to take a loan. A part time job and a summer job would work just fine towards helping with that. My point is that it is ok for little Johnny or Jane to work a bit to help out if they are so inclined. If they aren't then why should the parents have to work a bit more? Heck they could live at home and get out for less than $100K. There isnt anything wrong with a CC and living at home. My point is that there is no right way to do it and I wouldn't overfund a 529 either. I also know $100K in 10 years wont have the same buying power as $100K right now. But, that being said, its a reasonable approach.Watty wrote: ↑Sun Mar 26, 2023 8:51 pmI am assuming that would be adjusted for inflation.
There is no one right answer to how much a parent should pay for college but the idea of having your kids take on student loans when you are retiring in your early 50s might be something to rethink.
Instead of putting a dollar value on it an alternate goal to consider might be to be able to pay for tuition, fees, books, and room and board at your state's flagship university.
I live a relatively less expensive state and you could not pay for all those at the state flagship university for four years with only $100K.
With your income you could likely pay the difference between your $100K goal and that just by delaying your retirement by a few months if nothing else. Your kids will know that and it could make for some awkward family dynamics when you are vacationing somewhere expensive while they are filling out student loan forms.
If your kids wanted to go to a more expensive schools then you could let them know that they need to figure out how to pay for the difference with scholarships or loans.
People often worry about their kids wanting to go to an expensive university but I have also seen the opposite happen. Many college age kids are acutely aware of the risk of student loan debt and some may undershoot instead of risking taking on that debt. For example instead of going to a well regarded flagship university they might choose to go to a community college or less well regarded local university where they can live at home.
Nescio
Re: Help us to retire in 10 years
Plan seems reasonable, you’ll be in a great spot either way in 10 years. Who knows, maybe one of your kids won’t go to college (or won’t need to or won’t want to). Degrees are becoming less and less valuable.
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Re: Help us to retire in 10 years
Doing great, especially for a mcol.
Impressive savings rate.
Impressive savings rate.
“At some point you are trading time you will never get back for money you will never spend.“ |
“How do you want to spend the best remaining year of your life?“
Re: Help us to retire in 10 years
some questions:
- why will her 457 be depleted so quickly?
- have you modeled inflation? your expenses are $130k in today’s dollars? pensions in today’s dollars? college costs? if you havent done so, I’d suggest picking an inflation rate or two and see what happens.
- have you included the extra cash flow from your rental since it will be paid off prior to retirement?
- what return are you assuming for investment returns? will you change your asset allocation between now and retirement?
- how safe are the pension funds?
- have you used opensocialsecurtity.com to optimize claiming strategy?
given your pensions and willingness to work longer, seems to me you are in great shape but as you know, it’s a back loaded plan where most of the asset growth happens over the next ten years.
luck!
- why will her 457 be depleted so quickly?
- have you modeled inflation? your expenses are $130k in today’s dollars? pensions in today’s dollars? college costs? if you havent done so, I’d suggest picking an inflation rate or two and see what happens.
- have you included the extra cash flow from your rental since it will be paid off prior to retirement?
- what return are you assuming for investment returns? will you change your asset allocation between now and retirement?
- how safe are the pension funds?
- have you used opensocialsecurtity.com to optimize claiming strategy?
given your pensions and willingness to work longer, seems to me you are in great shape but as you know, it’s a back loaded plan where most of the asset growth happens over the next ten years.
luck!
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Re: Help us to retire in 10 years
All of this. We're a little young but of similar income and NW as OP. We have saved enough in 529s to cover 4yrs at public U in our state (at current costs)...it's a heck of a lot less than $100k/each and we have no plans of saving more. If OP think their kid(s) should work or take out some debt to help fund their own higher education as young adults, I personally have zero issue with that either. I certainly would not use the term "selfish" to describe parents who decided to do that.bampf wrote: ↑Sun Mar 26, 2023 9:09 pmI think it is totally fine for a parent to say what they are willing to pay for a kids education. I think $100K will pay a four year degree at a top tier in state university in many places. For example at the University of Colorado School of Engineering each semester is about $7500 right now. Books and room and board at another $10K ($25K a year all in) is a bit thin, but, summer jobs or scholarships can help a lot. I don't think they need to take a loan. A part time job and a summer job would work just fine towards helping with that. My point is that it is ok for little Johnny or Jane to work a bit to help out if they are so inclined. If they aren't then why should the parents have to work a bit more? Heck they could live at home and get out for less than $100K. There isnt anything wrong with a CC and living at home. My point is that there is no right way to do it and I wouldn't overfund a 529 either. I also know $100K in 10 years wont have the same buying power as $100K right now. But, that being said, its a reasonable approach.Watty wrote: ↑Sun Mar 26, 2023 8:51 pmI am assuming that would be adjusted for inflation.
There is no one right answer to how much a parent should pay for college but the idea of having your kids take on student loans when you are retiring in your early 50s might be something to rethink.
Instead of putting a dollar value on it an alternate goal to consider might be to be able to pay for tuition, fees, books, and room and board at your state's flagship university.
I live a relatively less expensive state and you could not pay for all those at the state flagship university for four years with only $100K.
With your income you could likely pay the difference between your $100K goal and that just by delaying your retirement by a few months if nothing else. Your kids will know that and it could make for some awkward family dynamics when you are vacationing somewhere expensive while they are filling out student loan forms.
If your kids wanted to go to a more expensive schools then you could let them know that they need to figure out how to pay for the difference with scholarships or loans.
People often worry about their kids wanting to go to an expensive university but I have also seen the opposite happen. Many college age kids are acutely aware of the risk of student loan debt and some may undershoot instead of risking taking on that debt. For example instead of going to a well regarded flagship university they might choose to go to a community college or less well regarded local university where they can live at home.
Re: Help us to retire in 10 years
Thanks for all the feedback. It seems so much attention has gone on not saving huge for college. We totally see college as 100% of our responsibility if we have the means to do so. If we make it according to the plan, we will be able to pay them from our saving itself. If we don’t have enough saving by then, we will work longer to support them. However, we feel that educational landscape is changing and not sure the value of the traditional degrees in the future. This has to be decided when time comes.
Re: Help us to retire in 10 years
gips wrote: ↑Mon Mar 27, 2023 6:31 am some questions:
- why will her 457 be depleted so quickly?
- have you modeled inflation? your expenses are $130k in today’s dollars? pensions in today’s dollars? college costs? if you havent done so, I’d suggest picking an inflation rate or two and see what happens.
- have you included the extra cash flow from your rental since it will be paid off prior to retirement?
- what return are you assuming for investment returns? will you change your asset allocation between now and retirement?
- how safe are the pension funds?
- have you used opensocialsecurtity.com to optimize claiming strategy?
given your pensions and willingness to work longer, seems to me you are in great shape but as you know, it’s a back loaded plan where most of the asset growth happens over the next ten years.
luck!
With 5% market return, we will have only -600k in 457. That is approximately 4-5 years of expenses. Our current expense is 75k. With inflation, I estimated expense at retirement as $130k including some travels. However, our housing expense should stay the same with fixed rate mortgage in the retirement.
I have not included income from rental in retirement, which gives additional flexibility to our plans.
One of the pension fund is State managed, reasonably stable. Another one is private.
If She works up to 59 instead of 50, pension will be 70k instead of 50k. Same goes for him. If market does not return well, our back up plan is work longer and increase the pension payments.
We did not use opensococialsecurity.com yet to optimize social. In our current plan, he will be claiming it at 70. But we can reassess it when time comes. Thank you for the feedback.
Re: Help us to retire in 10 years
specifically i was referring to this:Starfalls wrote: ↑Mon Mar 27, 2023 8:29 amgips wrote: ↑Mon Mar 27, 2023 6:31 am some questions:
- why will her 457 be depleted so quickly?
- have you modeled inflation? your expenses are $130k in today’s dollars? pensions in today’s dollars? college costs? if you havent done so, I’d suggest picking an inflation rate or two and see what happens.
- have you included the extra cash flow from your rental since it will be paid off prior to retirement?
- what return are you assuming for investment returns? will you change your asset allocation between now and retirement?
- how safe are the pension funds?
- have you used opensocialsecurtity.com to optimize claiming strategy?
given your pensions and willingness to work longer, seems to me you are in great shape but as you know, it’s a back loaded plan where most of the asset growth happens over the next ten years.
luck!
With 5% market return, we will have only -600k in 457. That is approximately 4-5 years of expenses. Our current expense is 75k. With inflation, I estimated expense at retirement as $130k including some travels. However, our housing expense should stay the same with fixed rate mortgage in the retirement.
I have not included income from rental in retirement, which gives additional flexibility to our plans.
One of the pension fund is State managed, reasonably stable. Another one is private.
If She works up to 59 instead of 50, pension will be 70k instead of 50k. Same goes for him. If market does not return well, our back up plan is work longer and increase the pension payments.
We did not use opensococialsecurity.com yet to optimize social. In our current plan, he will be claiming it at 70. But we can reassess it when time comes. Thank you for the feedback.
Balance of 457 plan 52: 600k
Balance of 457 at 55.5 : 0k
if your expenses are 130k, wont the 457 fund closer to 4.5 years of expenses?
in thinking about it, your savings rate is high, you are appropriately invested and your savings rate is great, you have built in flexibility, also, the higher earner is entering peak comp years, perhaps his comp will increase.
congrats!
Re: Help us to retire in 10 years
CU's own estimate is $34k/year for engineering ( https://www.colorado.edu/bursar/undergr ... o-resident ). I just checked the University of Washington and the University of Michigan, and they were very similar, to give examples of a couple other state flagships. There is some variation across the country (UNC Chapel Hill is cheaper, UC Berkeley and UVA are more expensive), but you seem to be underestimating cost to residential students at state flagships on average.
Now, a student living at home and attending a regional comprehensive could pay far, far less.
Re: Help us to retire in 10 years
Are you accounting for tuition (and fees) only, or full cost of attendance? Are you referring to the state flagship, or any public college? Every college is required to have a cost of attendance page, and I'm not seeing any flagships that are "a heck of a lot less than" $25k/year for the full cost of attendance (having just checked CA, WA, CO, MI, VA, and NC). But tuition and fees are not the majority of the cost (only 34% of the total cost at UC Berkeley, 24% of the total cost at the University of Colorado, etc.).stoptothink wrote: ↑Mon Mar 27, 2023 6:42 am We have saved enough in 529s to cover 4yrs at public U in our state (at current costs)...it's a heck of a lot less than $100k/each
Re: Help us to retire in 10 years
I paid it. $7500 a semester for tuition.Charon wrote: ↑Mon Mar 27, 2023 11:09 amCU's own estimate is $34k/year for engineering ( https://www.colorado.edu/bursar/undergr ... o-resident ). I just checked the University of Washington and the University of Michigan, and they were very similar, to give examples of a couple other state flagships. There is some variation across the country (UNC Chapel Hill is cheaper, UC Berkeley and UVA are more expensive), but you seem to be underestimating cost to residential students at state flagships on average.
Now, a student living at home and attending a regional comprehensive could pay far, far less.
Edited to add:
Just so you know I am not making it up. LInk to the actual tuition schedule.
2nd edit:
Also I notice you cut my quote at a convenient spot. I actually said
"Books and room and board at another $10K ($25K a year all in) is a bit thin,...
I'm mystified as to why my point would be changed. I also think that this hand wringing about saving enough for university caused me a lot of anxiety as a parent about to put a kid through university. you can go full boat and put your kid in a place that runs you $80k a year and that isn't wrong. But you don't have to and they can get a perfectly good quality respected engineering degree for a lot less than $80K.
No wrong answers. I could have done without the anxiety and stress of feeling like I needed $250K per kid. I didn't and neither does anyone else.
Last edited by bampf on Mon Mar 27, 2023 11:59 am, edited 3 times in total.
Nescio
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Re: Help us to retire in 10 years
There are two (IMO, more than decent) universities within 6 miles of my front door, both of them are <$7k/yr for tuition + fees. There is also a CC that is within easy commuting distance. The state flagship is ~30 miles away; I consider that out of daily commuting distance, although my wife commutes about that distance to work and I know a few people in our area who use our rail/bus system to commute to flagship U. My children may choose to live on campus (that's a discussion we'll have in 10yrs), but I don't feel guilty for not saving for that possibility ahead of time. I lived on our around college campuses for all 11yrs of my higher education; I don't value that "experience" anywhere near to the extent that others on this board do and don't feel it is necessarily my obligation to pay for it my children decide they just have to live on campus when they can live at home (although in the end, we may very well end up doing so depending on the circumstances).Charon wrote: ↑Mon Mar 27, 2023 11:15 amAre you accounting for tuition (and fees) only, or full cost of attendance? Are you referring to the state flagship, or any public college? Every college is required to have a cost of attendance page, and I'm not seeing any flagships that are "a heck of a lot less than" $25k/year for the full cost of attendance (having just checked CA, WA, CO, MI, VA, and NC). But tuition and fees are not the majority of the cost (only 34% of the total cost at UC Berkeley, 24% of the total cost at the University of Colorado, etc.).stoptothink wrote: ↑Mon Mar 27, 2023 6:42 am We have saved enough in 529s to cover 4yrs at public U in our state (at current costs)...it's a heck of a lot less than $100k/each
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Re: Help us to retire in 10 years
Inflation says otherwise for parents of young children wanting to have a plethora of educational options for their spawn.
Last edited by dogagility on Mon Mar 27, 2023 4:24 pm, edited 1 time in total.
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Re: Help us to retire in 10 years
That's why it's call personal finance.stoptothink wrote: ↑Mon Mar 27, 2023 11:50 amThere are two (IMO, more than decent) universities within 6 miles of my front door, both of them are <$7k/yr for tuition + fees. There is also a CC that is within easy commuting distance. The state flagship is ~30 miles away; I consider that out of daily commuting distance, although my wife commutes about that distance to work and I know a few people in our area who use our rail/bus system to commute to flagship U. My children may choose to live on campus (that's a discussion we'll have in 10yrs), but I don't feel guilty for not saving for that possibility ahead of time. I lived on our around college campuses for all 11yrs of my higher education; I don't value that "experience" anywhere near to the extent that others on this board do and don't feel it is necessarily my obligation to pay for it my children decide they just have to live on campus when they can live at home (although in the end, we may very well end up doing so depending on the circumstances).Charon wrote: ↑Mon Mar 27, 2023 11:15 amAre you accounting for tuition (and fees) only, or full cost of attendance? Are you referring to the state flagship, or any public college? Every college is required to have a cost of attendance page, and I'm not seeing any flagships that are "a heck of a lot less than" $25k/year for the full cost of attendance (having just checked CA, WA, CO, MI, VA, and NC). But tuition and fees are not the majority of the cost (only 34% of the total cost at UC Berkeley, 24% of the total cost at the University of Colorado, etc.).stoptothink wrote: ↑Mon Mar 27, 2023 6:42 am We have saved enough in 529s to cover 4yrs at public U in our state (at current costs)...it's a heck of a lot less than $100k/each
Make sure you check out my list of certifications. The list is short, and there aren't any. - Eric 0. from SMA
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Re: Help us to retire in 10 years
Not sure anybody disagrees...except those who make judgements about what others have or have not saved for the children's future education.dogagility wrote: ↑Mon Mar 27, 2023 4:23 pmThat's why it's call personal finance.stoptothink wrote: ↑Mon Mar 27, 2023 11:50 amThere are two (IMO, more than decent) universities within 6 miles of my front door, both of them are <$7k/yr for tuition + fees. There is also a CC that is within easy commuting distance. The state flagship is ~30 miles away; I consider that out of daily commuting distance, although my wife commutes about that distance to work and I know a few people in our area who use our rail/bus system to commute to flagship U. My children may choose to live on campus (that's a discussion we'll have in 10yrs), but I don't feel guilty for not saving for that possibility ahead of time. I lived on our around college campuses for all 11yrs of my higher education; I don't value that "experience" anywhere near to the extent that others on this board do and don't feel it is necessarily my obligation to pay for it my children decide they just have to live on campus when they can live at home (although in the end, we may very well end up doing so depending on the circumstances).Charon wrote: ↑Mon Mar 27, 2023 11:15 amAre you accounting for tuition (and fees) only, or full cost of attendance? Are you referring to the state flagship, or any public college? Every college is required to have a cost of attendance page, and I'm not seeing any flagships that are "a heck of a lot less than" $25k/year for the full cost of attendance (having just checked CA, WA, CO, MI, VA, and NC). But tuition and fees are not the majority of the cost (only 34% of the total cost at UC Berkeley, 24% of the total cost at the University of Colorado, etc.).stoptothink wrote: ↑Mon Mar 27, 2023 6:42 am We have saved enough in 529s to cover 4yrs at public U in our state (at current costs)...it's a heck of a lot less than $100k/each
Re: Help us to retire in 10 years
It really doesn't. There are many options that don't require $250K per kid. Many. Hundreds. A veritable cornucopia of options.dogagility wrote: ↑Mon Mar 27, 2023 4:22 pmInflation says otherwise for parents of young children wanting to have a plethora of educational options for their spawn.
Note that I didn't say there aren't opportunities to spend $250K per kid. Of course you can spend that if you want. I also didn't say it was wrong to fund @ $250K.
Many roads to Dublin. Or Boulder for that matter.
Nescio