My husband worked 20 years after college and retired last year at age 44. I'm 40 and still working full-time plus carry the insurance benefits. Our kids are aged 10, 11, and 13. Current savings earmarked for college tuition is about $40,000.
$15,000 in a 529 and $25,000 is custodial DRiPs. We contribute $3000/year to the 529 as that's the maximum tax benefit in our state (WI).
My plan is to pay off the mortgage within 2 years. Once mortgage is paid off, the $1600/month house payment can now be diverted into more robust college savings.
I'd like to sell our fancy pants house in 7 years before the last one heads off to college (she skipped a grade and therefore will be going at 17). Since the house will have been owned 'free and clear' for about five years before this happens, we should be able to cover two kids in college at the same time - maybe. However, if I need it, I'll use proceeds from the sale of this home to make up the difference.
I'm only planning on two of my kids attending college. My middle daughter has a cognitive delay and severe learning disabilities. The upside is, she can stay in HS until age 21 and there are many opportunities available for kids with special needs to learn applicable skills for an enjoyable life. This is something I need to do a bit more research on, so if anyone else has been through it with a disabled adult child, I'd love to hear your experiences!
Anyway, I digress. Once the house is sold and we downsize - or maybe even rent - so we can be more mobile...I'll likely try to "retire" before the last kid finishes college. This plan gives me a range of somewhere between ages 47 and 50.
My DH and I both agree that the kids won't receive squat unless they get jobs, save for themselves, earn good grades, and attend a public, in-state schools. We're not telling them any of our plans. The most we've ever said is that whatever they earn and save for school we'll match.
Actually, one of my bigger dreams is to use the "college" savings (say $5000/year) I collect from each kid when they start jobs at 16 to open and fund ROTHs for each of them.
I hope to work just long enough to have enough 'stache of my own to make all tuition payments for both kids. Therefore, anything they earn (and save) will go towards their ROTHs instead of a tuition bill or student loan. Then, 10 years or so down the road when they are married and hopefully secure, BAM, here you go kids...$50,000 grand each in ROTH IRA's for you.
Like I said: Very Big Dream, but it's fun to dream!