Author Topic: Accounting for removal of expenses for children in retirement calcs  (Read 1386 times)

Gin1984

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Prior to my daughter being born, I was unemployed, in a Master's program and we were living on my husband's $26,000 grad salary, our tenant's gave us money for retirement savings (about $4000/year) and our roommate gave us some wiggle room (about $200/month).  Then our daughter was born, and I got into the PhD program.  My salary is $25,000 but much of it is taken up by our daughter's expenses (daycare is $244/week), taxes and retirement savings ($625/month plus 3% of my salary to a pension).  We now use the income from the tenants for side savings/debt pay down because my husband is graduating and our EF was mostly money from subsidized student loans so I want to pay all of his student loans down, save an EF and save for moving in 3 years.  So, that is my reasoning for staying at 15% retirement saving for now.  But then I was thinking, we only really need $30K in retirement (not including inflation) because we don't plan to retire till we pay our kids way (we plan to have a second kid) through college, not the whole 51-55K.
I wondered how other MMM parents considered children's expenses.  They are not savings, but they are not spending account for in retirement. 

warfreak2

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Re: Accounting for removal of expenses for children in retirement calcs
« Reply #1 on: April 19, 2014, 12:44:30 PM »
MMM's Shockingly Simple Math being a simplification (surprise there!), it doesn't account for things like lower expenses after retirement. However, FIRE calculators like FIRECalc and cFIREsim have inputs for "other spending" which let you enter other costs that are one-time, or recurring within a particular timespan.
« Last Edit: April 19, 2014, 12:46:27 PM by warfreak2 »

Gin1984

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Re: Accounting for removal of expenses for children in retirement calcs
« Reply #2 on: April 19, 2014, 12:45:44 PM »
MMM's Shockingly Simple Math being a simplification (surprise there!), it doesn't account for things like lower expenses after retirement. However, FIRE calculators like FIRECalc and cFIREsim have inputs for "other spending" which let you can enter other costs that are one-time, or recurring within a particular timespan.
Thanks Warfreak!