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Post by waffle2 on May 4, 2023 14:33:52 GMT
It is hard to retire early when one have kids.
1. 4 year Private college cost for one kid is around 350k.
2. Medical insurance is expensive.
3. Travels around the world are expensive if one stays in 3-4 star hotels/airbnb in prime tourist areas which I prefer to do.
Or one needs to have good passive income source or inheritance or have earned, saved and invested really well early in life. And I have neither of these.
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Post by johnsmith on May 4, 2023 14:39:30 GMT
move to Mexico? Costa Rica?
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Post by Fearchar on May 4, 2023 15:05:00 GMT
Insist that your kids join the military and Uncle Sam will oay for Tuition.
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Post by Fearchar on May 4, 2023 15:13:18 GMT
Mine enlisted and Uncle Sam paid it all plus pay for staying in the reserves.
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Post by waffle2 on May 4, 2023 15:14:30 GMT
One of my colleague at work was from Germany. He moved back to germany when his kids completed middle school saying college education is free in Germany.
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Post by waffle2 on May 4, 2023 15:18:52 GMT
How long is commitment to work in military after graduation if govt pays your college education?
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Post by retiredat48 on May 4, 2023 15:29:11 GMT
Let me check...Oh yes, retired at age 48.
Had three kids in Penn State at the time. Did not win the lottery.
My oldest daughter, age 53, is "retiring next year, when last grandchild heads to college." Financially independent. Did not win the lottery. Stayed working only because the CEO of her hospital in Chapel Hill, NC, asked her to be on the COVID task force representing the ICU during Covid. Now ended.
BTW I started IRAs (funded for ten years) for my three daughters at their age 12. My oldest has similarly started IRAs for their grandkids. This is like giving them their age 65 retirement. What they add/save reduces this retirement date.
Good luck all...
R48
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Post by waffle2 on May 4, 2023 16:37:00 GMT
"BTW I started IRAs (funded for ten years) for my three daughters at their age 12. My oldest has similarly started IRAs for their grandkids. This is like giving them their age 65 retirement. What they add/save reduces this retirement date." - R48
R48,
1. So is that (early IRA at age 12 for your kids and early investment for you, I would guess) the main reason for your success, would you think?
2. Did you invest the IRA in a particular way (investment methodology)?
3. Any other thing you did that led to your success?
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Post by Fearchar on May 4, 2023 17:31:44 GMT
How long is commitment to work in military after graduation if govt pays your college education? My Daughter was in the Marines for 4 years. Her MCO was digital electronics, which may have a longer commitment than some, but enough so her college. Her school has had yellow ribbon funds available, so she will probably not use up all of her GI Bill benefits. I encouraged her to join the Air Force as it is the most plush of the branches, but I understand a lot of smart kids do that. In the Marines her intelligence was more valued, so she served in the Pentagon. Initially at their it help desk, but eventually she was restricted to helping only Generals.... a 3 or 4 Star General wrote her a very strong letter of recommendation, which opened doors in the college admittance world. |
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Post by steadyeddy on May 4, 2023 19:08:59 GMT
It is hard to retire early when one have kids. 1. 4 year Private college cost for one kid is around 350k. 2. Medical insurance is expensive. 3. Travels around the world are expensive if one stays in 3-4 star hotels/airbnb in prime tourist areas which I prefer to do. Or one needs to have good passive income source or inheritance or have earned, saved and invested really well early in life. And I have neither of these. Your kids gladly take $ from you, but when you need them a) would they give?, and/or b) would you ask? Some introspection is needed to figure out what the answer might be. Then plan accordingly. There are no federal loans for retirement, but there are student loans for college. When my kids went to college this is what I said "You can choose any college you want as long as you maintain HOPE scholarship and are within our state." That made things a whole lot simpler. My wife and I spent some money to support the kids during college (not enough to dent our retirement target) and they held on to HOPE scholarship throughout the 4 years. Now, they are on their own. |
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Post by Mustang on May 4, 2023 19:13:06 GMT
How long is commitment to work in military after graduation if govt pays your college education? It is required to have a college degree to be an officer. High school grads go in as enlisted troops. The commitment before earning tuition assistance is 4 years active duty and an honorable discharge. After getting an honorable discharge the commitment is two years inactive reserves. (No weekend duty just subject to recall in time of war.)
Going to a military academy pays for all four years. Joining an ROTC program in college gets tuition assistance for the last two years after completing basic training during the summer between sophomore and junior years. Graduates then join the military as officers, not enlisted, for 4 years. Starting and not finishing either of these programs requires 4 years enlisted service. Tuition assistance is not free. It is earned.
I did four years enlisted then used the GI Bill to pay for college. The experience was worth it. At 19 I was not ready to go to college. At 24 I took college seriously. My first academic advisor told me she could tell the difference in advising a high school grad and a veteran. The high school grad's opinion is "I don't care if I get a good job I just want a degree in something that interests me." The veteran says "I don't care what the degree is in as long as it results in a good job."
When I was teaching AFROTC I asked the detachment commander why he kept calling the cadets kids. I told him when I was their age I was in Thailand repairing fighter aircraft. When my brother was their age he was in the Navy, married and had a kid. The detachment commander said they are kids because they have never had adult responsibility. He was correct. There is a world of difference between the maturity of a high school grad and a veteran. That maturity affects their choice of a degree and it also affects how they approach their first job. Typically a veteran with the same college degree will be given more responsibility.
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Post by retiredat48 on May 4, 2023 22:04:04 GMT
"BTW I started IRAs (funded for ten years) for my three daughters at their age 12. My oldest has similarly started IRAs for their grandkids. This is like giving them their age 65 retirement. What they add/save reduces this retirement date." - R48 R48,
1. So is that (early IRA at age 12 for your kids and early investment for you, I would guess) the main reason for your success, would you think?R48 replies in bold: It was an investment for me, but not needed in the end. I have never touched these IRAs. The understanding was that the kids mother or me could tap this money if needed...but never happened. 2. Did you invest the IRA in a particular way (investment methodology)? Great question. Since it was technically part of my portfolio, I invested their IRAs AS PART OF MY ASSET ALLOCATION. That is, one was all international, primarily Fido southeast asia fund; one had a large exposure to Fido select technology fund (now 85% of portfolio). About six years ago I released oldest daughter/husband to reinvest their IRA as they saw fit. They have done well, reallocating.3. Any other thing you did that led to your success? Saved 20.5% of my pay, for 27 straight years w/o touching it, in a GE (401.K type) savings plan, in a cap appreciation fund run by GE, with an ER of 0.1%. Never sold any. Zero percent bond allocation...until retired. Also funded my own IRAs. Theme was: Pay yourself first. BTW spouse never really worked for pay.
R48 |
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Post by FD1000 on May 4, 2023 23:05:32 GMT
The formula is "easy". You need to have a portfolio of 20 times your annual expense not including your SS. I retired at 25+ after just 23 years starting from nothing by investing monthly and using a good risk-adjusted return.
After 5 years in retirement the portfolio is much bigger.
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Post by steelpony10 on May 5, 2023 15:59:09 GMT
waffle2 , Everything you listed but medical care is an optional expense. Retirement isn’t necessarily difficult to plan for and ease into. Present income - SS and other income leads you to your part. Factor in raises plus medical care and you have the basics covered. If there’s any extra left over look at other concerns (LTC?) and wants become personal choices. All have to be prioritized. My opinion is only the moneyed classes get stuck with footing their kids advanced education. So that’s not a big concern for most.
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Post by johntaylor on May 6, 2023 18:12:52 GMT
GI Bill has changed, but only paid enough to cover books and parking at expensive school where got MBA and JD
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Post by Mustang on May 6, 2023 21:18:52 GMT
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Post by Fearchar on May 6, 2023 21:43:51 GMT
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Post by win1177 on May 8, 2023 20:55:19 GMT
One thing people don’t look into enough is various state funded educational opportunities. When we moved to SC, I looked into the state funded college “prepayment” program, you pay for four years at any state supported public college, and then the program will pay for four years no matter how much the price (tuition/ fees/ etc.) have increased. I sent my daughter to college with this, she graduated debt free.
Win
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Post by saratoga on May 8, 2023 23:49:38 GMT
What happens if your child flunks out?
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Post by FD1000 on May 9, 2023 12:43:45 GMT
One thing people don’t look into enough is various state funded educational opportunities. When we moved to SC, I looked into the state funded college “prepayment” program, you pay for four years at any state supported public college, and then the program will pay for four years no matter how much the price (tuition/ fees/ etc.) have increased. I sent my daughter to college with this, she graduated debt free. Win We looked intensively and couldn't find anything. Thankfully GA has the hope program which pays tuition if the student get B in all subjects. But tuition is only 1/3 of the money. I made a "deal" with my kids. We would pay for any state college/uni in GA or zero anywhere else. As you guessed they all did their BA/BS in GA. Masters and PhD are on them. We always set up the rules. |
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Post by johntaylor on May 10, 2023 14:00:33 GMT
Interesting that GI Bill is no longer a de minimis benefit. My (distant) memory was $150 per month or so
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Post by yakers on May 19, 2023 16:03:23 GMT
AFAIK all the top schools (harvard, CALTECH, MIT, Stanford....) are so well endowed that they could give 100% scholarship, simply do not need tuition at all, they just keep it there for status and some people can and will pay regardless.
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