Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Delaying ER until Kids Complete College?
Old 11-04-2009, 11:40 AM   #1
Recycles dryer sheets
JustNtime's Avatar
 
Join Date: Oct 2009
Posts: 150
Delaying ER until Kids Complete College?

I did delay my ER until 2 out of 3 had their bachelors. In retrospect, I could have probably retired several years earlier, but it felt risky at the time. I noticed a number of other folks seem to plan to delay retirement until the kids are college graduates. I think they're are a number of strategies which would make it easier to ER while(even before) kids are in college. It could even help qualify for additional grants and loans. Some suggestions for minimizing family contribution calculation which determines 'financial need':

Avoid saving in child's name
Payoff home mortgage (other loans) with non-retirement account savings
Maximize savings in retirement accounts - minimize regular savings
Make necessary major purchases prior to financial aid calcuations
Pay college expenses from regular savings until depleted then consider HELOC/etc if required
Use all available no interest money (student loans) and free money (grants) (perhaps a friendly contest between siblings to see who can qualify for the most or minimize their college costs - good luck it didn't work too well for me)

Other thoughts?
__________________

__________________
JustNtime is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-04-2009, 03:00 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
I simply held the college funds in cash, starting in 2007. Smart move! It had only a small impact on projected performance, since it was going to be spent in about 6 years in the case of my two kids. And, it was safe from the downturn, which is why it was cash in the first place. So no big worries.

However, it is now all back in equities, other than next year's living expenses. Couldn't resist the market dip. So far, so good. We'll have to see how 2010 goes.
__________________

__________________
Animorph is offline   Reply With Quote
Old 11-05-2009, 02:45 AM   #3
Thinks s/he gets paid by the post
Rambler's Avatar
 
Join Date: Jul 2007
Posts: 2,250
I'm still at the grindstone and one reason is my two kids being in college. It just feels safer. No way we'll qualify for aid. I want to help them (but not pay for everything), and I'm in a new role at megacorp that is keeping me busy as well as challenged, so I'm ok with it for now. Three more years though, and I'll be on my way (it would take a lot to make me go beyond that, and it would have to include money but be much more than "just" money).

R

R
__________________
Find Joy in the Journey...
Rambler is offline   Reply With Quote
Old 11-05-2009, 06:10 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,626
Other thoughts?

Make kids pay for college.

The NYTimes has had a running series about college admission nd financial aid with contributions from both admissions officers and financial aid officers. These folks have shown that they don't need to follow the FAFSA guidelines. If they see someone with a paid-off home, they are happy to include the home value in their financial aid calculations. And it doesn't matter if money is held in child's name or parents' names. Money is money. They are wise to how folks hide money ... except maybe if the grandparents pay directly for college.

OTOH, college is cheap anyways compared to early retirement. If one goes in-state, then it doesn't cost an arm and a leg. If you are early retired with any kind of stash and your kid goes to an in-state public institution, I don't see how you will get much aid. If you are early retired with a modest pension and no stash, I guess you can get some aid.

Didn't Trombone Al early retire while his daughter was in college?
__________________
LOL! is offline   Reply With Quote
Old 11-05-2009, 08:40 AM   #5
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Heck, I'll be 60 when DD is 21, so I am sure I'll be retired by then. I'm shooting for ER at age 56, but who knows what will happen. I may cover 1/2 of in state college, just like my parents did. Still too early to tell.
__________________
Bimmerbill is offline   Reply With Quote
Old 11-05-2009, 08:54 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by Bimmerbill View Post
Heck, I'll be 60 when DD is 21, so I am sure I'll be retired by then. I'm shooting for ER at age 56, but who knows what will happen. I may cover 1/2 of in state college, just like my parents did. Still too early to tell.
Glad to see I am not the only "older father" on here..........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 11-05-2009, 08:57 AM   #7
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Yeah, I try not to think that if I had my kid at 19 instead of 39 she would be out of the house by now...
__________________
Bimmerbill is offline   Reply With Quote
Old 11-05-2009, 09:48 AM   #8
Recycles dryer sheets
fisherman's Avatar
 
Join Date: Jul 2007
Posts: 478
Another old dad. I will be 59 when my youngest starts college.
__________________
Worked the plan and now living the Dream!
fisherman is offline   Reply With Quote
Old 11-05-2009, 10:40 AM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Whether it's college, vocational school, helping a kid start a business....... whatever, it's just another expense to account for in determining your FIRE status. I think the real question is the change in flexibility caused by going FIRE while you still have dependents at home. If something changes (kid's health, plans, etc.) while you're still working, you still have the option to continue on (ugh!) if necessary. Once you walk out the door, at least for many of us, it might be difficult to undo the decision.

I didn't FIRE until I had the finances for my commitments (mainly a trust fund for a grandchild with special needs) locked up. I probably would have handled the commitment to help with the kid's college the same way although in my case I had my family early and was an empty nester at RE time.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 11-05-2009, 11:08 AM   #10
Recycles dryer sheets
WB52's Avatar
 
Join Date: Sep 2008
Posts: 169
I am 49 now. DW and I and have three daughters that we want to put through college. The first is 22 and will graduate next month. We carried the financial load for her all the way through her state college (though she had to w*rk for some small expenses along the way). If she goes on to Grad School, that will be on her own. We will do the same with the other two girls (ages 17 and 13). My parents did this for me and I feel both obligated and happy to be able to do this for my kids too. I want them to be well prepared for life and to reach for their full potentials. We have a kind of understanding that they must work to achieve the best that they are capable of in college. If they do, they have our full support (DW and me).
DW and I both intend to RE in the middle of this 12 year long college payment drain for our daughters. We expect to be able to do so because we have segmented off their college expenses into different buckets. We calculate our RE expenses separately and are waiting to achieve "the number", rather than a specific date.
If our daughters choose to attend expensive private schools, that is OK. But our financial support is set at the state school level. They will need to suplement that amount with scholarships, loans, more w*rk, etc.
Best of luck to you!
__________________
WB52 is offline   Reply With Quote
Old 11-05-2009, 12:09 PM   #11
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
Quote:
Originally Posted by fisherman View Post
Another old dad.
Hey! I'm not old! You have to be at least 50 to be old! When I'm 50, I'll say you have to be at least 60... and so on.
__________________
Bimmerbill is offline   Reply With Quote
Old 11-05-2009, 12:30 PM   #12
Recycles dryer sheets
fisherman's Avatar
 
Join Date: Jul 2007
Posts: 478
I like that thought!
__________________
Worked the plan and now living the Dream!
fisherman is offline   Reply With Quote
Old 11-05-2009, 05:47 PM   #13
Recycles dryer sheets
 
Join Date: Jul 2007
Posts: 71
I'll be 70 when my youngest finishes 4 years of college. OOOOh boy! On the other hand they sure are a delight to have around now. Yea I would be a lot more comfortable about retiring if they had their education but I'm not sure it would make that much difference in reality.
__________________
Sevo is offline   Reply With Quote
Old 11-05-2009, 09:17 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
I did not retire @57 until youngest son was in state college. He is now in his third year.I had a good bit saved but not sure how I will cover what looks like will be his fifth year. Good kid, dean's list.....music major. Oh well.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Old 11-05-2009, 10:49 PM   #15
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Quote:
Originally Posted by JustNtime View Post
Other thoughts?
Keep showing your kid all the cool things they could get to do in the military, and then let them figure out the details of NROTC & service academies...

Quote:
Originally Posted by LOL! View Post
Didn't Trombone Al early retire while his daughter was in college?
Yep. I think she was barely out of the nest when the ER partying started.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 11-05-2009, 11:06 PM   #16
Recycles dryer sheets
 
Join Date: Apr 2006
Location: Hardscrabble Texas
Posts: 372
Our plan early on was that both our kids would go to college if they wished. We started saving when they were in grade school. Other than a small scholarship that my son earned, we payed the entire bill for both.
We did encourage them both to be as frugal as possible with our hard earned money.

My son and son in law lived in one of the old corp dorms at A&M. NOT air conditioned and dirt cheap. It was actually the same dorm my father lived in 50 years earlier. They both had a basic meal plan which was an expense saver. My son was also able to test out of first year calculus and physics....another money saver.

My daughter lived at home and drove to Dallas for classes. This also helped on the bills.

It's a satisfying feeling to know that both have the education to do better than we did.
Our youngest graduated when I was 51. There's no way I would have tried to retire while either of them were still in school.
__________________
.....#.....
Poundkey is offline   Reply With Quote
Worried Older dad.
Old 11-06-2009, 07:39 AM   #17
Recycles dryer sheets
 
Join Date: Oct 2009
Posts: 85
Worried Older dad.

Dang! This thread is depressing me. I'm 52 with four kids aged 8, 9, 13 and 14. It looks like my planned ER at 55 is starting to slip towards 60 . However, on a more positive note when I ran FireCalc it looks like I could probably retire at 58 with basically the same income that I currently make working.
__________________
rdjrn is offline   Reply With Quote
Old 11-06-2009, 09:24 PM   #18
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
We have two daughters. One is in college with full MERIT scholarship (not financial aid). She also works as an intern part time during school and full time during the summer. She will be completely debt free and have quite a bit of savings. The younger one will be a different story. We probably have to pay for her education since she will not be a national merit scholar nor a class valedictorian, unlike her sister. Most likely she will not qualify for any merit scholarship or financial aids because of our savings and income.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 11-06-2009, 09:27 PM   #19
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by rdjrn View Post
... on a more positive note when I ran FireCalc it looks like I could probably retire at 58 with basically the same income that I currently make working.
That's great -- you probably have a healthy nest egg.
__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Old 11-06-2009, 09:28 PM   #20
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Originally Posted by fisherman View Post
Another old dad. I will be 59 when my youngest starts college.
That's NOT old at all.
__________________

__________________
May we live in peace and harmony and be free from all human sufferings.
Spanky is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Has anyone retired before sending their kids to college? bank5 Other topics 50 08-10-2009 07:41 AM
Kids & College Empty Pockets Other topics 73 02-17-2007 10:49 AM
Kids, college, and frustrations..... spark0506 Other topics 14 12-18-2006 09:36 PM
ER with Kids/College Money JWV Other topics 26 01-17-2005 03:34 PM
ER Homestretch vs. Kids in College airstyle Other topics 6 02-16-2004 12:11 PM

 

 
All times are GMT -6. The time now is 06:02 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.