Retire with kids at home

[Patience]

Curious if any members retired with minor children still at home.
I'm noticing a lot of mid to late 50s newly retired with recently launched dependents, but that's not our plan.
Current plan is for me to retire in 3-4 years at the age of 47-48, perhaps consult casually. DW intends to reduce to part time. So I guess SAHD. 4 kids. 1 nearly graduated HS and 1 entering HS at the time of retirement.

The general rule here on the forum is to wait until they are in college or graduated college, which is logical. But with my questionable health I will not be waiting that long. Emotional.

Anyone with experience on retiring with school age children have tips or advice?

 

[NgineER]

No tips, I am also planning to do the same in five years. I will have ond in high school and one ready to start high school. If you plan for it, it should work.

 

[REIJM]

I don't have any advice to give, but can say that my wife and I's plan is the same as yours. My forecast planner has us retiring at 48, and we'd have one kid that would be 14 and another that would be 12.5 (hopefully, my wife's currently pregnant).

For us, I think the biggest financial hurdle will be healthcare costs. Our forecast has us with an expected $2.85M in tax deferred funds, and my plan is to do Roth conversions to fill up the 10 & 12% tax brackets every year, while living off of our brokerage account (so we won't be able to qualify for any ACA subsidies, although who know what that system will even look like in 12 years).

How are you planning on handling secondary education costs? Do you have 529's set up for them? Planning on just paying out of your brokerage account (assuming you have one)?

Will your wife still be able to get healthcare coverage for your family through her employer if she is part time?

 

[Patience]

I don't have any advice to give, but can say that my wife and I's plan is the same as yours. My forecast planner has us retiring at 48, and we'd have one kid that would be 14 and another that would be 12.5 (hopefully, my wife's currently pregnant).

For us, I think the biggest financial hurdle will be healthcare costs. Our forecast has us with an expected $2.85M in tax deferred funds, and my plan is to do Roth conversions to fill up the 10 & 12% tax brackets every year, while living off of our brokerage account (so we won't be able to qualify for any ACA subsidies, although who know what that system will even look like in 12 years).

How are you planning on handling secondary education costs? Do you have 529's set up for them? Planning on just paying out of your brokerage account (assuming you have one)?

Will your wife still be able to get healthcare coverage for your family through her employer if she is part time?

Healthcare and insurance is all out of pocket which is a big bill, but accounted for. It is not tied to employment. College agreement is we will pay for in state tuition and living expenses if they stay home and commute. If they room and board on campus or go out of state, they pay the difference with employment.

Roth conversions are definitely the way to go. We will likely do that as well when the tax bracket is lower, though much of our investments are in RE and brokerage accounts.

 

[CaliKid]

I was contemplating retirement while kids were still in high school but, for me, I thought it important that they see me go to work every day. In reality I was starting to work less and spent 2-3 hours at the gym every day, took long lunches with friends, etc. However, I wanted them to see dad as going to the office. I wanted them to plan that they would work for a long time. I was early 50's at that time. Once they went off to college I stopped going to the office and cut my work down to basically retired which is where we are now. About 99% retired.

 

[FlaGator]

I did it at 55 with two at home, 13 and 10. It wasn't "a plan", it was a choice I made after their passed the year before.

We had been close to/at FI for a few years anyway, including substantial 529 balances. It worked out, see this post for a summary: An Eventful 10 years of ER

Health care costs became substantial and were the most difficult to manage. Keeping AGI in the range to maintain ACA subsidies while generating cash flow for expenses took a lot of time. Having adequate funds in HSA, Roth and regular savings/brokerage accounts gives you more choices.

Happy to address any specific questions or topics.

 

[WhenIsItTime]

Not sure if this is a financial or some other type of question. I say - No rules. I retired at 47 with a 12 and 10 year old at home. Wife retired prior. If anything, it helps with going from mach 3 to zero. Up every morning to see them off to school. I attend all their sporting events, help with school work, etc. My only worry was that they will forget how hard their mom and I worked prior. I didn't see that as a reason to keep working.

 

[imjustawarrior]

I retired with on freshman in college and 2 in HS. I had always thought I would wait until they were out of HS, but I didn't. Now, there are 2 in college and 1 in HS.

I'm not sure what kind of advice you are looking for.

I believe parents should model a "proper" lifestyle for their children. I thought going to work every morning was modeling a proper lifestyle. I came to realize that retiring early also modeled a proper lifestyle.

I love being more available for my family. I believe in using my time to serve my family and others. I think this is modeling a proper lifestyle. For example, this morning I was able to get out early and shovel snow and clean off my girls' cars. I also try to help my neighbors when I can.

Financially, there can be a lot of college benefits if you keep your income low enough. In my state, one can get the first 2 years of college paid by the state.

 

[MrsHaloFIRE]

Both retired then we had our one and only. Shes almost 4. We are twice the age (easily) of the other preschool parents and we care not. Currently having coffee break and playing with window clings on a rainy day. no regrets

 

[Gallaher]

The brave early retirees on this thread are my heroes! To retire before 50 is a feat.
I retired at 57. Could have made 52. Possibly, could have retired at 50 but just not brave enough. At 50 there is still a long road in front of you.

 

[pacergal]

If the finances are there to support retirement in your 40's, that is great. Formative teen years are a wonderful time to be available for more hands on parenting/mentoring and downright enjoyment of your kids!
If there is any concern about not "going to work", that is a great opportunity to teach your kids about LBYM/saving/investing/planning.
Best wishes to you and enjoy your retirement.

 

[REIJM]

Healthcare and insurance is all out of pocket which is a big bill, but accounted for. It is not tied to employment. College agreement is we will pay for in state tuition and living expenses if they stay home and commute. If they room and board on campus or go out of state, they pay the difference with employment.

Roth conversions are definitely the way to go. We will likely do that as well when the tax bracket is lower, though much of our investments are in RE and brokerage accounts.

If you're already accounting for health insurance that isn't tied to employment in your budget, then you should be good because that's a major cost.

Your college funding plan also seems sound. Being able to fund most, if not all, of their college expenses will give them a massive head start in their adult/professional life.

If your forecasted NW at the time of retirement can support your living expenses (don't forget about your wife's part time income and how it ends up reducing your withdrawal needs), go for it. You'll be able to have more time with your child that will be in HS, helping them as needed. And then once they go off to college, you'll be in your early 50's with what is hopefully a decade+ of good health, and can travel and do as you and your wife wish.

You can never get the time back. You've worked decades and saved diligently, make the most of the time you have left with the money you worked hard for and saved.

 

[Patience]

Not sure if this is a financial or some other type of question.

Any and all perhaps. Knowing it can be done because it has been done.

Key highlights of the Experience.

The aca game, college affordability, financial stress (or lack of), in retrospect was it a good decision or bad, what could have been done differently.
There just aren't a lot of stories about early retirement with school age kids, likely because it's more infrequent.

 

[rembrandt]

It is easier if you have the canine variety.

 

[er33]

What we are thinking is that one or both of us remain working as it might help give the kids a leg up when they need to get internships. Obviously assuming they go into the same field and want to work at the same places we are working at the time. The time horizon is roughly 8 years before that is needed.

 

[MarieIG]

What we are thinking is that one or both of us remain working as it might help give the kids a leg up when they need to get internships. Obviously assuming they go into the same field and want to work at the same places we are working at the time. The time horizon is roughly 8 years before that is needed.

DH's connections also helped two of our sons get employment, but they have kept those positions based upon their own hard work, reliability and merit.

I will say that they both worked their tails off in less lucrative positions prior to their entry in the field and accordingly were both ready and appreciative of the opportunity. They both continue to work hard, but with better pay and benefits then previously.

 

[SnowballCamper]

It's great to have the time to volunteer at the kid's school. Now that DD is a senior in HS, she is the only one in the house with a job. We've been retired about 6 years now. I'd really like to do more travel in the shoulder seasons, but with the kid in school that hasn't happened yet. It will next year!

 

[Koolau]

When I retired I had 2 in college and one in late HS. Two big advantages: I had health insurance on the kids when I retired through my retirement (subsidy from Megacorp - not full ride) and the kids had lots of help with college costs through scholarships/grants and from their grandparents. So not sure I'm much help to you. BUT we did have a kid at home, still FWIW.

 

[REIJM]

It's great to have the time to volunteer at the kid's school. Now that DD is a senior in HS, she is the only one in the house with a job. We've been retired about 6 years now. I'd really like to do more travel in the shoulder seasons, but with the kid in school that hasn't happened yet. It will next year!

Your comment about travel is one of the "downsides" I've thought about when retiring with kids school in grade school, that you're tied to the school's schedule. Your travel timeline is much more limited due to not being able to travel in the off seasons.

The plus side is that in theory, if you're not traveling as much those first couple of years, you don't need to withdraw as much, so you get more growth out of your funds by the time you start pulling on them to do bigger/more expensive travel when the kids are off at college.

 

[imjustawarrior]

Retiring with kids in school still limits family travel. My DW retired a couple of months before we got married. She has been gracious enough to let me take mini road trips since I retired. I'll take off for a few days and go do things she has no interest in doing (e.g., digging fossils in Wy).

 

[er33]

DH's connections also helped two of our sons get employment, but they have kept those positions based upon their own hard work, reliability and merit.

Yes of course, one can only help get a foot in the door. After that is their own fate to make.

 

[Patience]

Thank you everyone for your replies. I was away a bit for work, but back now.
Refreshing and reassuring to know it can be done.
Leading children by example is important. Two of the four definitely recall the sacrifices we've made to be here. The other two... time will tell. We talk often about goals, finances and commitment. Hoping some of those moments stick with them.