pushing out retirement to help kids with college

[travelover]

Maybe your kids can pay you back later, then it isn't really an expense.

[jollystomper]

As much as you may love your children, your health comes first. If your job is driving you to drink too much, that is you health on the line. It might kill you to keep that stress going for another 2 years... and how is that really helping your kids?

I would really check if your son has exhausted all other possible means of funding his education. I did not see a mention of other scholarships he has applied for. And, at his age and with this economy, it might be better for him to work while he goes back to get his degree - it make take him twice as long, but it might be better in the long run.

While DW and I always agreed we would fund our kids college education, that came with expectations that, if not met, meant bye bye generous funding. When our youngest went to college we told him to really try to get his degree under 5 years/10 terms, as I would be retiring in that time frame, the costs were being paid out of my job salary, and no guarantees beyond that. He has about a year to go but is taking more time off to work... so now that I am retied, I told him he needs to figure out how he is going to fund those last 2 terms... we will help a bit but not nearly as generously.

[cooch96]

Quote:

Originally Posted by Jerry1 I’d stick with your RE plan. If that $60K comes into play, it will happen much further down the road. Said another way, it’s probably the difference between going broke at 90 instead of 92. By then your kids will be successful enough to help you out (yeah right). Either way, those two years of your life, IMHO, are not as valuable as the next two and I wouldn’t want to spend the next two at work. All being said knowing that your FireCalc numbers will likely still be above 95%.

+1. 99% is awful high. Nothing in life is certain.

Is your 99% success rate based on a minimum, ascetic budget, year after year, for the rest of your life; or could you tighten the belt (less travel, less eating out) for a year or two? Anything over 80% with a discretionary budget is pretty good gambling odds.

[Chuckanut]

Depending upon what one wishes to do for a living there are other ways to fund college besides student loans. For starters, choose a public college near home and save a ton of money since you provide them with 'free' room and board. A friend of mine got his MD courtesy of Uncle Sam - Uncle put him through med school, he worked as a Navy doctor for 4 years and did two more years of public service medicine on an Indian Reservation. Another friend joined the Army and they put her through nursing school. One woman I knew managed to patch together a number of small scholarships and used them at the local Community College.

Several young men I know actually worked while going to college. GASP!

[pb4uski]

Quote:

Originally Posted by cooch96 +1. 99% is awful high. Nothing in life is certain. Is your 99% success rate based on a minimum, ascetic budget, year after year, for the rest of your life; or could you tighten the belt (less travel, less eating out) for a year or two? Anything over 80% with a discretionary budget is pretty good gambling odds.

Good point... if OP reduces starting portfolio by $60k it changes the 99% to what? 98%?

To me anything over 95% is fine.

[rodi]

Here are my thoughts on the subject... take them for what their worth (not much)....

Assuming you've been honest with yourself about your retirement budget (haven't underestimated things)... you might find there are *easy* changes you can make, to reduce expenses, once you retire. After all you won't be commuting anymore, no need for dry cleaners, and your liquor bill might drop. Perhaps even medical bills going down as you find the time to relax, exercise, maybe do yoga to work on the muscle/joint issues you're having. You'll have time to focus on your health and quality of life. I was surprised at how much less we were spending once retired... Cooking at home as a hobby, vs expensive meals out. Favorite daily activity is a 2 mile walk on the beach with the dog every morning - great for my mental and physical health.

So look hard at your budget... does it seem likely that there may be opportunities to spend less than your 99% plan? If so, that can help offset any college funding you choose to make.

Funding college for kids is a nice goal - but not required in the parenting handbook. We chose to fund 529's monthly from when the kids were born... and are in a pretty good place for when our high schoolers hit universities in the next few years... as long as they go to public school. If we didn't have the 529 funds earmarked for them, we'd look at other ways to help them out... including having them stay at home or helping them with the finaid applications.

As mentioned above - your health is important... IMO more important than helping the kids through college...

I'd re-examine the retirement planned spending and see if prudent frugal cuts can make it possible to protect your health AND pay for 2 years of your son's college.

[KenZ71]

Wife & I are planning to tell our cherubs - 10 & 15 - it's all them. Then when they are in late 20s give a large check. Idea being they will work harder / play less while in school.

Besides, if by college age they can't sort stuff in life to get by I've failed as a parent. Time for me (parent) & them (kids) to try a different approach.

[pb4uski]

Quote:

Originally Posted by KenZ71 Wife & I are planning to tell our cherubs - 10 & 15 - it's all them. Then when they are in late 20s give a large check. Idea being they will work harder / play less while in school. Besides, if by college age they can't sort stuff in life to get by I've failed as a parent. Time for me (parent) & them (kids) to try a different approach.

Good luck with that.

I don't see that as being a practical approach in this day and age, so let us know how it works out for them.

[Bigdawg]

Quote:

Originally Posted by pb4uski Good luck with that. I don't see that as being a practical approach in this day and age, so let us know how it works out for them.

I am surrounded daily by people young and old who's parents DID not pay for their college. A good percentage (I would say half) got their degree's the unconventional way. Slowely, out of pocket as they lived their lives. Many not receiving their undergrad prior to age 30. My DN (35 years old) recently told me that the best thing that happened to him is when he was cut off financially. He bought his first house a few months ago. I am very proud of him him. Too bad he will probably have to take care of his mom(my sister). Long story there.

Best of luck to OP.

[Golden sunsets]

Quote:

Originally Posted by KenZ71 Wife & I are planning to tell our cherubs - 10 & 15 - it's all them. Then when they are in late 20s give a large check. Idea being they will work harder / play less while in school. Besides, if by college age they can't sort stuff in life to get by I've failed as a parent. Time for me (parent) & them (kids) to try a different approach.

I assume that when you say “it’s all them” you mean that you aren’t going to help pay for college. That’s your perogative, although if you can afford to help, I’m not sure why you would not choose to help. Your statement though, that “if by college they can’t sort it out” suggests to me that your expectations are unrealistic. I have 2 launched children, ages 35 and 33, who have been very successful professionally, but they sure as heck had not figured it out by the time they were in college. We were happy to continue to guide them through their 20’s and feel that they are socially and professionally successful. It takes time and patience.

[pb4uski]

Quote:

Originally Posted by Bigdawg I am surrounded daily by people young and old who's parents DID not pay for their college. A good percentage (I would say half) got their degree's the unconventional way. Slowely, out of pocket as they lived their lives. Many not receiving their undergrad prior to age 30. My DN (35 years old) recently told me that the best thing that happened to him is when he was cut off financially. He bought his first house a few months ago. I am very proud of him him. Too bad he will probably have to take care of his mom(my sister). Long story there. Best of luck to OP.

That may be good for some kids.... but it makes life more difficult that it needs to be if the parents have some means. In the case of those not getting their undergrad prior to 30, realistically they start out 8 years behind their peers in career development.

While I totally agree that kids should have skin the game with respect to post-secondary education, given how expensive it has become if parents have means to help its is good. IME, kids are still developing intellectually emotionally from 18 to 24 or so.

[Brat]

We helped our children with college expenses and they applied for financial assistance at their universities. They also applied for college loans. They hustled academically and worked as their schedules permitted. Over time we paid off their college loans but in all honestly one grabbed a brass ring so maybe we should have not paid that loan off so quickly.

My advice is not to delay your retirement given your health. Sit down with your spouse, kids and be honest about the choices you face. If you develop health problems as a result of your employment you won't be able to help with college expenses. Ask each their goals and a proposal to finance their education. They could attend a local Community College for a year or two to complete required classes, make sure that the CC recognizes the classes the would take.

Encourage them to apply at the schools the would like to attend. Remember if you are retired the FAFSA (or whatever they call it these days) will reflect lower family income. See what the schools offer. Do not expect your children to pay you back.

The son who wants a degree in Environmental Science should visit the school's placement office to see where the other graduates landed.

My nephew earned an Associates degree from Portland Community College then continued with https://www.wgu.edu/lp/general?refer_id=73306&ch=PDSRCH while working full time and earned a Batchelor's Degree in Business Administration. https://www.wgu.edu/#close He didn't borrow a dime.

It can be done.

[Bestwifeever]

Quote:

Originally Posted by KenZ71 Wife & I are planning to tell our cherubs - 10 & 15 - it's all them. Then when they are in late 20s give a large check. Idea being they will work harder / play less while in school. Besides, if by college age they can't sort stuff in life to get by I've failed as a parent. Time for me (parent) & them (kids) to try a different approach.

You should tell them immediately that they have to pay for their own college, seriously. The 15 year old especially might rethink the high school curriculum he or she chooses and how hard to work on it, and can start thinking now about what colleges to aim for.

To the OP: you said your plan was always to pay for two years of a state college (and do your kids know this?). Sounds like older son has not been in college since high school so you still “owe” him for it according to your plan? If you don't actually have the funds set aside specifically for your plan, time to sharpen the pencil to find them?

[Doribe]

Quote:

Originally Posted by badatmath Go "back" to school on your oldest? Did he drop out the first time or is this a second degree? I would not be very inclined to help with either. I like the idea of suprise gifts down the line if you want to help them pay loans down.

+1

[Bigdawg]

Quote:

Originally Posted by pb4uski That may be good for some kids.... but it makes life more difficult that it needs to be if the parents have some means. In the case of those not getting their undergrad prior to 30, realistically they start out 8 years behind their peers in career development. While I totally agree that kids should have skin the game with respect to post-secondary education, given how expensive it has become if parents have means to help its is good. IME, kids are still developing intellectually emotionally from 18 to 24 or so.

I don't know what the evidence shows but I don't know many folks who had it figured out from 18-22/24. I certainly did not. I would argue that my friends and acquaintences that didn't have it figured out and stumbled through the 18-24 years actually are doing better. They learned from their struggles. I do agree that we should help if able as I have with my kids. Conditions should apply. Benchmarks achieved, etc...

Because "IME, kids are still developing intellectually emotionally from 18 to 24 or so." I believe that they should not be given a funded green light to go off to a not well supervised 4 years of drinking, chasing co-eds,
study in whatever subject they think they may be interested in.

[flyingaway]

I'm basically FI. I'm doing OMY (or more) to build some buffer and help my sons in terms of possible inheritance. Although this is different from what you plan to do, the purpose is the same.
I'm 54, and my job is not stressful. But I still want to get out as soon as possible.

[LOL!]

I can see why the one son did not get much in the way of financial aid. Like many students, he has a job. He can probably work 20 hours a week somehow, somewhere while going to school. He can work full-time in the summers, but I do know that many students go to school in the summer, too, in order to get through college quicker.

Anyways, with tax breaks and part-time work, a student can come up with $10,000 to $15,000 a year on their own. I know the total annual cost of a Texas state university including tuition, fees, books, room & board is about $20,000 a year. With the Pell grant, that leaves very little money needed from loans.

Anyways, been there, done that.

[FI_RElater]

Quote:

Originally Posted by bingybear If 60k breaks your retirement plans... then you aren't prepared to retire in the first place. Drop 60k 100k from your assets and run firecalc again.

you need a healthy reserve for the expected unexpected- - - major car problems, new roof or HVAC, short term health issue (like hip or knee replacement, with associated co-pays and OOP costs including therapy) - - a good plan will include these and you will sail through without difficulties...a bad one, wellllll....

[pb4uski]

Quote:

Originally Posted by Bigdawg .... Because "IME, kids are still developing intellectually emotionally from 18 to 24 or so." I believe that they should not be given a funded green light to go off to a not well supervised 4 years of drinking, chasing co-eds, study in whatever subject they think they may be interested in.

Totally agree... B's or better and I keep writing checks.... if not, then they front the cost for the next semester and I reimburse once I gat a B's or better report card and they can use that check for the next semester's costs.

[daylatedollarshort]

We retired early and funded college without paying too much out of pocket. We found many ways to reduce costs for college including community college credits, in state and public 4 years, co-op / intern programs, tax credits, financial aid, summer jobs, tutor jobs, online courses and transfer degrees from community college to the 4 years.

It is not just the annual tuition for college that matters but also the years it take to get through the degree. In California there are transfer degrees at the community college that guarantee students have a contract to graduate in two more years once they transfer to the four years. It looks good on a resume to not just have a degree but work experience and references for the first job hunt so the work during college was not a draw back but an big asset. And the transfer degree plans result in two degrees in 4 years (transfer AA and BS or BA).

We either bought or partially funded good value cars for both kids, too, so neither one is starting off adult life with any big debts.