Author Topic: FIRE and children in university/college  (Read 777 times)

scottish

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FIRE and children in university/college
« on: July 15, 2017, 02:52:59 PM »
I was reading the topic about people FIREing at market peaks & it's impact on the cFireSim results, and I thought, "Huh, my ER date is really going to be triggered when my children are self-sufficient."    Our annual spend will drop by about $15K per year once they're both through university.   #1 has been quite successful with summer jobs and is able to cover most of her university costs going forward.   #2 will be a little more expensive, and I expect the coming school year to be our peak year for education related spending.   But he should be reasonably self sufficient in 2 years as well.

And then I started to become confused.   Our contribution to the kids education was budgeted via an RESP (registered education savings plan in Canada) many years ago.    So why do I need to wait for them to finish university if they're only spending money that was carefully planned out?   I don't think I do.   Perhaps I'm being overly cautious.

Is anyone else waiting for children to become self-sufficient before ER?

soccerluvof4

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Re: FIRE and children in university/college
« Reply #1 on: July 16, 2017, 04:53:03 PM »
I calculated what I needed for covering college and Fire'd about 2.5 years ago. I have one leaving in 2 weeks with a partial sport scholarship and another leaving in a year with a full ride sports scholarship. Then a pause for a few years and have 2 more. So I rolled my second ones 529 fund down to the other 2 younger ones. The point is whatever it is that you are going to contribute live by it and when you hit that number be done or you will be doing for your kids or others the rest of your life.  I find I am better for them with my availability now then just the $. Plus I will get to watch and see them play alot more then I would of as there both going out of state and pretty far.
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bender

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Re: FIRE and children in university/college
« Reply #2 on: July 16, 2017, 09:28:41 PM »
Kids will likely be in high school when we retire.  Current plan is to build up 529s to a minimum of 100k per child before that.  Anything needed beyond that will have no gaurantee that we will be able to help.  If the stash is abundant, we will be happy to help more.  If not, we feel 100k is a great start.

Trifele

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Re: FIRE and children in university/college
« Reply #3 on: July 17, 2017, 05:16:37 AM »
Ditto here.  Our kids will be in early high school when we retire.  We will have saved  ~$100k for each of them in 529s, and that is what we will be contributing.  If they get scholarships, great -- they can use the 529 money for grad/professional school.  We are not including the 529 money in any of our FIRE calculations.

Cranky

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Re: FIRE and children in university/college
« Reply #4 on: July 17, 2017, 05:30:09 AM »
Health insurance is a much bigger variable in the US, I think - because so many people need/want to carry their young adult children for as long as possible.

Secretly Saving

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Re: FIRE and children in university/college
« Reply #5 on: July 17, 2017, 07:39:12 AM »
It's not really waiting for kids to be self-sufficient before FIRE as we already have enough money set aside for college.  For us, (time-wise) kids in college happens to coinside with when the health care golden handcuffs release (full medical covered for the family starting at any age until 65).  So, we're waiting until then even though we could pull the full FIRE trigger now.  Medical is just too important to us.  Now, if the company policy ever took away the medical, it would be time to jet!  Spouse also really enjoys working at the moment.

scottish

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Re: FIRE and children in university/college
« Reply #6 on: July 17, 2017, 04:03:03 PM »
Yes, health insurance is important even up here.   That's part of the reason I'm reluctant to RE.   The firehose of cash from work also gives me good flexibility if something goes badly wrong.