Kids when young vs. kids when old(er)

[Rdub]

We got married when I was 34 and my wife was 27. We had our first when she was 30 and the second 3 years later. Neither of us were married or engaged before, so it was just a matter of finding the right person at the right time. The timing worked out pretty good for both of us. My wife retired this year and I am planning for next year. The girls will still be young enough that we can watch and help them grow up.

[athena53]

Interesting question. I had DS, my only child, at 31. I was well-established in my career and I think that made a big difference because we actually had a nice chunk of money left after paying for daycare. I think a lot of couples make the decision for the wife to stay home based on current cash flow (well, daycare is expensive and there are commuting and business clothing costs that would go away if she quit). She then misses the long-range benefits of staying in the workforce (company 401(k) matches, sometimes pension accrual, promotions, keeping skills upgraded and marketable).

We didn't go overboard spending on DS. He got what he needed and some nice frills (had been to Spain, Bermuda, Rome and Australia before he got out of college). I was also able to send him to a military boarding school for HS when he needed the structure, and get him through college with no loans. That was my biggest priority. OTOH, he got his first car when he got out of college. We gave him our 10+-year old Subaru sedan and he was grateful to have it.

The other thing that made it great timing for me was that DS finished college in 2007, which was pretty much during my peak earning years. When I made the decision to retire 3 months ago, I didn't have to worry about college expenses. I've had a few of my friends in the field lose jobs recently and tell me that they had to find another job because they were paying college expenses, or had HS-age kids headed for college.

[aida2003]

Quote:

Originally Posted by LOL! Yes, assets too high, so we could easily afford paying for college. But not only that, they can see that a couple puts $46,000 a year into 401(k)s and lowers their taxable income. They expect a couple to stop that and use the money to pay for college instead. So while retirement plan assets are not included in the calculation, potential retirement plan contributions are.

I knew there was a catch somewhere . So, unless kids win a scholarship or a grant, responsible parents must discontinue their retirement funding. Now this makes me curious: When does a college look at the FAFSA strictly from a mathematical perspective vs. making a decision based solely on the 401k contributions? How does the 5.2% asset formula push parents to divert 401k contributions to college especially when retirement assets are not included? Hmm... I'll have to talk to my manager whose son is starting college this year. She'll probably explain in practical terms for me.

Sorry, not trying to hijack the thread. Carry on about your offsprings. I love them dearly when they don't challenge me to insanity...I know it will come soon with their tween/teen age. Cannot say I'm looking forward to that.

[PatrickA5]

We had our kids at 28, 33 and (Oops!) 40. I remember thinking "what am I doing having a kid at 40!, I'll never retire." To make a long story short, I was still able to semi-retire at 50 due to our 40's being our prime money making years. And, as others have said, kids tend to make you feel younger, so we've been very busy since our youngest was born 16 years ago. It's been a great thing!

For those that think having kids will cost a lot of money - you're right! I've got 2 kids through college and one to go (529 plan fully funded). I imagine I've easily paid somewhere north of $500,000 due to having 3 kids (including college). Worth every penny.