How do you afford private?

[Anonymous]

Hubby is a GM-14 and I am a SAHM with health issues. I don't receive disability benefits. We own our EOTP townhouse. Our DD received 80% FA at a Big 3 while our oldest child attended DCPS.

Happy to have the assistance. No sacrifice and no stress.

[Anonymous]

Anonymous wrote:I don't understand how you can't do it on that HHI. You must be committing the money elsewhere to something you consider more important. Which is fine as long as you recognize that it's a reflection of your priorities and not the actual lack of money.

+1 - bingo

[Anonymous]

It's all about how much value you think private school education is adding. We are in a good school district but mapped to a below average school. We thus opted for private for our older daughter.

I was a product of private school myself, and was convinced that it was the only option. Let's just say tuition in real dollars, i.e. inflation adjusted, was nearly 40-50% less than it is today for comparable private schools back then like my own. Unless money is no object (I'm thinking HHIs at $600k+ while we are around $300k), I'm finding it very difficult to see the value for us of the private education if we had the choice of a high performing public school , especially at the elementary school level. Again, I don't begrudge people of their individual choices.

For us we stay in private only because we don't have school choice. We could move a few blocks over and be mapped to a public school we're delighted with and would gladly transfer our child.

Right now I don't want to bear the transaction costs of moving, but before our second child reaches K age, we will certainly move (if only a few blocks) to ensure mapping to excellent public schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:These financials don't seem to be written by anyone who actually knows anything about their own personal finances.

No one earning $250K with $2.5M in savings should be bothered much my paying for private school or college. First of all, the savings should be producing investment returns equal to to their work income. Live on (and save from) the salary and only tap the investment return for your children's education. So last year, the S&P 500 was up 30%. On a $2M portfolio, that was a $600K return. This year, it is up $15%. If you siphon off the earnings from just the past two years, you have enough to fill the DCs' trust funds with nearly $1M, more than enough to throw off all of DC's education needs in perpetuity and buy them very nice houses when they turns 25. No sacrifice in lifestyle and an insignificant difference in your overall financial picture.

I guess. But those who have been burned by the stock market, and have $2.4M that they have carefully saved are not always included to gamble in the stock market like that.

Also, not a good idea to put all your savings into the stock market anyway. You should keep some in cash for emergencies and some in fixed income for safety.

[Anonymous]

We waited a few years before having our children, so we are a little older than most of the other parents in our kids' classes, but perhaps we were able to save and invest more than some others as well. We have 3 in private school, HHI around 375K (pre-tax, and including investment income), no debts. Family helped us early on, so we have no mortgage, which obviously helps alot as well. We can pretty much pay for the tuitions with investment income (dividends and tax-exempt interest), at the moment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:These financials don't seem to be written by anyone who actually knows anything about their own personal finances.

No one earning $250K with $2.5M in savings should be bothered much my paying for private school or college. First of all, the savings should be producing investment returns equal to to their work income. Live on (and save from) the salary and only tap the investment return for your children's education. So last year, the S&P 500 was up 30%. On a $2M portfolio, that was a $600K return. This year, it is up $15%. If you siphon off the earnings from just the past two years, you have enough to fill the DCs' trust funds with nearly $1M, more than enough to throw off all of DC's education needs in perpetuity and buy them very nice houses when they turns 25. No sacrifice in lifestyle and an insignificant difference in your overall financial picture.

I guess. But those who have been burned by the stock market, and have $2.4M that they have carefully saved are not always included to gamble in the stock market like that.

Also, not a good idea to put all your savings into the stock market anyway. You should keep some in cash for emergencies and some in fixed income for safety.

Also, PP is suggesting realizing all those capital gains. You can't assume the market will always go up, or that it will go up at those rates. So PP would need another plan for retirement. I'd go with using the dividend income to supplement school fees and save the principle for retirement.

[Anonymous]

Unbelievable. I have neighbors who have managed to send their kids to private because they have cut expenses elsewhere. I also know very high HHI folks who are perfectly happy with their local public schools.

As someone said - you make economic choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:wife went back to work after SAHM for 15 years, and a lot of sacrifices. tuition is just part of the equation, remember to add the social aspect of it, field trips, ski club, dance..(if u have a DD, this gets expensive, etc)..

How did she get a job?? I am trying to do this to be able to afford to send our second to private.

+1 Please share!

I'd rather go back to work that ask for FA for DC2, but after 15 years out of work, no doors opening here!

[Anonymous]

Our income is similar and we currently have one in $35k+ private. 2nd child is applying for private HS from public so we have had to reprioritize and the numbers do work, even with two mortgages. The extras (all the travel sports) will be the challenge but once again it is a matter of prioritizing over "things".

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:wife went back to work after SAHM for 15 years, and a lot of sacrifices. tuition is just part of the equation, remember to add the social aspect of it, field trips, ski club, dance..(if u have a DD, this gets expensive, etc)..

How did she get a job?? I am trying to do this to be able to afford to send our second to private.

+1 Please share!

I'd rather go back to work that ask for FA for DC2, but after 15 years out of work, no doors opening here!

See 12/29/2014 22:56