When you can’t do it all, how to save for college?

[Anonymous]

OP, as a Fed, you have pension, SS, and TSP for your retirement. Pension and SS will be fix, so determine how much you need for your retirement and contribute to TSP accordingly.

Then concentrate saving for college. Don't sweat too much, either you get a loan or they can get a loan themselves. You can always get the equity out of the house to pay for college, if you want to but it's not advised to do so.
Everything will be OK.

[Anonymous]

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

[Anonymous]

Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

[Anonymous]

To the poster who hoped tuition would not go up...I am sorry to tell you that it does...virtually every year (or housing or dining hall or something). You can get a sense of trends from the colleges you are considering.

A very few promise to hold the cost constant for the incoming cohort, for 4 years. My DC's school went up about $1500 the second year. (She is a rising sophomore) Their finance plan assumed that my child would pay that increase, via summer earnings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

I'd rather have an extra 30 minute commute and pay for my child's college. My spouse has a very long commute and you do it for the money so you give your children a better life.

[Anonymous]

Anonymous wrote:Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

It was phased out many years ago. Older generations got great pensions but newer ones don't.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

I'd rather have an extra 30 minute commute and pay for my child's college. My spouse has a very long commute and you do it for the money so you give your children a better life.

This is ridiculous! You buy a house based on budget, commute, schools, neighborhood, and also what the actual house looks like. The house has to work for everyone in the family. It’s not selfish to have considered your commute as one of the factors when you bought your house.

A top, private college is already $70K a year. That’s nuts.

What’s also nuts is to spend your life commuting because your kid might get in. What’s even nuttier, is spending your life commuting so that your kid can pay full-freight at a lower-tier SLAC studying American Studies.

At a certain point, live your life, save what you can, and hope it works out.

[Anonymous]

Anonymous wrote:Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

I am confused. Everyone I know that works for the Feds gets a pension. Are you a contractor?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

I'd rather have an extra 30 minute commute and pay for my child's college. My spouse has a very long commute and you do it for the money so you give your children a better life.

This is ridiculous! You buy a house based on budget, commute, schools, neighborhood, and also what the actual house looks like. The house has to work for everyone in the family. It’s not selfish to have considered your commute as one of the factors when you bought your house.

A top, private college is already $70K a year. That’s nuts.

What’s also nuts is to spend your life commuting because your kid might get in. What’s even nuttier, is spending your life commuting so that your kid can pay full-freight at a lower-tier SLAC studying American Studies.

At a certain point, live your life, save what you can, and hope it works out.

We don't buy based off commute as my spouse changes jobs every few years and the locations flip. We plan to fully pay for a state school for college and graduate school and if we can afford more, great. If not, state school. If you want to overspend for a house and justify it and not pay for college, go for it. It speaks volumes of you as a parent. And a good parent preps their kids for college so they don't go study American Studies. College was $50K at privates 20 years ago so why is it a surprise its $70K now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

I am confused. Everyone I know that works for the Feds gets a pension. Are you a contractor?

The pension has changed over the years. Its not a pension like our parents generation who didn't get social security and pension only.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

It was phased out many years ago. Older generations got great pensions but newer ones don't.

Meh. CSR was more generous. But, I’ve been in for eleven years and am under FERS. 1 plan to work until 63 and get about 1.1% of my high 3 salary per year. I have, 11 years, that’s 12.1% of 120,000 vested, or about $15,000 year. I’m up for a promotion and planning to be in for 30 years/ until age 63. If so, my pension will be about $40k a year in today’s dollars. Plus approx $26000 a year in SS, plus approx $24,000 a year out of TSP. That’s $86,000/year tax free. Almost half from FERS. Plus medical. Plus my spouse’s income.

And I’ve been in long enough to be under the old FERS formula (contribute less than 1%).

Federal pension is a good deal if you can get it. And if the tea party doesn’t shut it down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't assume Feds get pensions. I have worked for the government for 24 years, and only get a 401K contribution--no pension.

They started phasing out that benefit years ago.

I am confused. Everyone I know that works for the Feds gets a pension. Are you a contractor?

The pension has changed over the years. Its not a pension like our parents generation who didn't get social security and pension only.

. I understand that, but it still a pension. You get 1% instead fo the previous 2%ish but you also get Social security which the old plan does not give. The pp said they only had 401k, which isnt even available to Feds. So, I am confused.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

I'd rather have an extra 30 minute commute and pay for my child's college. My spouse has a very long commute and you do it for the money so you give your children a better life.

This is ridiculous! You buy a house based on budget, commute, schools, neighborhood, and also what the actual house looks like. The house has to work for everyone in the family. It’s not selfish to have considered your commute as one of the factors when you bought your house.

A top, private college is already $70K a year. That’s nuts.

What’s also nuts is to spend your life commuting because your kid might get in. What’s even nuttier, is spending your life commuting so that your kid can pay full-freight at a lower-tier SLAC studying American Studies.

At a certain point, live your life, save what you can, and hope it works out.

We don't buy based off commute as my spouse changes jobs every few years and the locations flip. We plan to fully pay for a state school for college and graduate school and if we can afford more, great. If not, state school. If you want to overspend for a house and justify it and not pay for college, go for it. It speaks volumes of you as a parent. And a good parent preps their kids for college so they don't go study American Studies. College was $50K at privates 20 years ago so why is it a surprise its $70K now?

We bought based on best commute for most of the DMV area. And it has worked. We have worked, near L’Enfant, near Van ness, Bethesda, Chantilly, Tysons and Sterling. All were 20-45 minutes. Totally doable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Be very honest with your kids about college when the time comes. We have a lot of mortgage for our income - we decided we wanted short commutes to have more time with our kids and we're trying to pay it down faster. We're on track to pay about half of each of our two kids' undergrad. As we finish off paying our second mortgage and get them both into school, we'll increase. We also get some money from grandparents, which we save for college. However, I am banking on them investing in their own educations and planning to help pay as they go. If they want to go to a private school, they'll understand that they will have to pay more of the costs.

How sad for your kids you don't teach them to live within their means and your location is more important than their future.

NP. Location isn't just about the parents' commute. It is also a way to make more time for your family in the day. That's as important as $$.

I'd rather have an extra 30 minute commute and pay for my child's college. My spouse has a very long commute and you do it for the money so you give your children a better life.

This is ridiculous! You buy a house based on budget, commute, schools, neighborhood, and also what the actual house looks like. The house has to work for everyone in the family. It’s not selfish to have considered your commute as one of the factors when you bought your house.

A top, private college is already $70K a year. That’s nuts.

What’s also nuts is to spend your life commuting because your kid might get in. What’s even nuttier, is spending your life commuting so that your kid can pay full-freight at a lower-tier SLAC studying American Studies.

At a certain point, live your life, save what you can, and hope it works out.

We don't buy based off commute as my spouse changes jobs every few years and the locations flip. We plan to fully pay for a state school for college and graduate school and if we can afford more, great. If not, state school. If you want to overspend for a house and justify it and not pay for college, go for it. It speaks volumes of you as a parent. And a good parent preps their kids for college so they don't go study American Studies. College was $50K at privates 20 years ago so why is it a surprise its $70K now?

I’m saving $20K/yr. for college. I’m not suggesting people don’t have to save. I’m suggesting it’s nuts to call people bad parents for somehow not saving half a million dollars, but you know, they could have if they’d just commuted in farther. The problem with college is that it takes 18 years of SIGNIFICANT savings to fund it. It used to be “working over the summer” was a way to fund it. This is caused by structural problems in our society, not by bad parents making bad choices.