Can we afford $45k/year private for 2 kids? Stats included

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, when does your stock vest? What is ratio of stock to cash bonus? How stable are your jobs/industries? Is one of you a doctor (and therefore has more job security)?

One person’s stock vests monthly, roughly $6-10k per month. The other person’s stock vests quarterly and is roughly $30-45k per quarter. Both stocks have done well hence the upper ranges. One bonus guaranteed at 18% of base. Both in tech, but different companies and industries within tech.

Minimum $54k vests every 3 months but you only have $30k in a brokerage? Sounds legit.

Not op but I get much less in stock but my stock vests then it has to sit in the company specified account for a period of time after vesting and that account is restricted on trades which aren’t free like every where else.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP, when does your stock vest? What is ratio of stock to cash bonus? How stable are your jobs/industries? Is one of you a doctor (and therefore has more job security)?

One person’s stock vests monthly, roughly $6-10k per month. The other person’s stock vests quarterly and is roughly $30-45k per quarter. Both stocks have done well hence the upper ranges. One bonus guaranteed at 18% of base. Both in tech, but different companies and industries within tech.

What have you been doing with the RSU before now? I wonder if you could steadily sell it (and invest appropriately but not be beholden to two stocks) and earmark it for “school” and move off the rest. So that in a downturn, you don’t feel pressure on how to fund school while maintaining your other costs and savings.

We are newly doing private HS and are in a different but similar position and that is part of how I am approaching it. But HS is only four years (but would not be good to pull out midway).

This. A friend’s dad lost a quarter of his NW in a downturn while he collected and never sold company shares. My company is stable but doesn’t grow so I get my shares into s&p as quickly as I can

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know this question has been asked time and time again, but wondering if the wise folks of DCUM can give some thoughts on if we can comfortably afford private school for 2 kids, ages 4 & 1. We are considering private K-12 for both children at $45k/kid and wondering if we can make it work for the long haul with tuition increases etc.. Both of us work and are fairly young in our careers (early 30s), so we don't have a substantial nest egg to fall back on.

Our stats:
HHI $650k, this is recent and very heavily on stock RSUs. $380k is salary/guaranteed bonus and the remaining is stock
401k: $400k (max out, both have access to mega back door)
529s: $75k (planning to continue to fund $16k/year total)
HSA: $50k (put in max every year and do not use it)
After tax brokerage: $30k
Cash savings / emergency fund: $45k
Home equity is roughly $700k, have about $800k mortgage at 4%; $7.4k / month. No other debt.

Biggest concern is our liquidity and heavy reliance on stock which is volatile. Also concerned with signing up for tuition payments so early on, and needing to maintain high earning power for the next 2 decades.

Even if you could afford it, it would be a waste of money.
This is what I would do. Send kids to good public schools.
I would invest the $90k yearly. Do this instead: Open an account an invest the $90k. In 14 years, it would have grown to $2.6m. Wait 7 more years and you have $4m. Your kids will be 25 and 22.
Give it to them. That’s a rocket launch into life. It’s a much better value to them.

This is a great thought especially if you can teach both kids how to code

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I went to both public and private school growing up and my own experience is that private is a big waste of money. Buy a house in a good public district and call it a day. It’s ultimately up to your kid to succeed or fail. I’ve lost count on how many private school kids turned out to be duds.

Public schools aren't what they used to be. Yes, even the "good" ones.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I never said I can't afford private school for my kids. I choose not to, because I like to spend my money where there is value and good return on my investment. My kids go to very good public schools. I am a product of public school system myself and I don't think I was disserviced by it. I just don't buy into the notion that private schools are necessarily better.

We try to spend our money wisely, make investments, and take care of our kids and their future in other ways. Yes, we take European vacations as a family. I think it is important for my kids to learn about different cultures and be exposed to different ways of thinking. But no, I am not materialist and selfish as you seem to suggest.

You’re fine. PP is just a jealous loser who makes less than you and stretches to send her kids to private. She can’t stand it when more successful people don’t validate her decision to send her kids to private, and she’ll throw a bigger fit when her kids get into worse colleges than all the public school kids.

I am the PP and yes, we did sacrifice initially, but our HHI is very very high now and our net worth is over $10M. So no, not jealous at all.

PS oldest is a senior and got into a top 20.

Lol sure. I knew you’d post a pathetic and desperate response like this.

Well it's true. Sorry you're jealous we can afford private school and also be full pay for top university.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I never said I can't afford private school for my kids. I choose not to, because I like to spend my money where there is value and good return on my investment. My kids go to very good public schools. I am a product of public school system myself and I don't think I was disserviced by it. I just don't buy into the notion that private schools are necessarily better.

We try to spend our money wisely, make investments, and take care of our kids and their future in other ways. Yes, we take European vacations as a family. I think it is important for my kids to learn about different cultures and be exposed to different ways of thinking. But no, I am not materialist and selfish as you seem to suggest.

You’re fine. PP is just a jealous loser who makes less than you and stretches to send her kids to private. She can’t stand it when more successful people don’t validate her decision to send her kids to private, and she’ll throw a bigger fit when her kids get into worse colleges than all the public school kids.

I am the PP and yes, we did sacrifice initially, but our HHI is very very high now and our net worth is over $10M. So no, not jealous at all.

PS oldest is a senior and got into a top 20.

That's nice. Around us most of the private school kids are going to Tech and JMU, same as the public school kids. And if your kid actually goes to a T20, they probably would have gotten in from public too.

Unlikely. The particular school he got into likes privte school kids...specifically Catholic ones. Now you know which school.

[Anonymous]

Regarding college acceptances, if you look at the matriculations that are posted, a much higher percentage of senior class ends up at top 20 universities in private schools than public schools. That is a fact. Wonder over to the private school forum where this is discussed quite bit. Sidwell for example probably had 25% of their class get into top 20 schools if I remember correctly. At the Bethesda area public schools, only about 5% of the seniors end up at top 20 schools.

[Anonymous]

Anonymous wrote:Regarding college acceptances, if you look at the matriculations that are posted, a much higher percentage of senior class ends up at top 20 universities in private schools than public schools. That is a fact. Wonder over to the private school forum where this is discussed quite bit. Sidwell for example probably had 25% of their class get into top 20 schools if I remember correctly. At the Bethesda area public schools, only about 5% of the seniors end up at top 20 schools.

There is a reason private school kids are getting into top universities and it’s not necessarily from the merits of the school itself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I never said I can't afford private school for my kids. I choose not to, because I like to spend my money where there is value and good return on my investment. My kids go to very good public schools. I am a product of public school system myself and I don't think I was disserviced by it. I just don't buy into the notion that private schools are necessarily better.

We try to spend our money wisely, make investments, and take care of our kids and their future in other ways. Yes, we take European vacations as a family. I think it is important for my kids to learn about different cultures and be exposed to different ways of thinking. But no, I am not materialist and selfish as you seem to suggest.

You’re fine. PP is just a jealous loser who makes less than you and stretches to send her kids to private. She can’t stand it when more successful people don’t validate her decision to send her kids to private, and she’ll throw a bigger fit when her kids get into worse colleges than all the public school kids.

I am the PP and yes, we did sacrifice initially, but our HHI is very very high now and our net worth is over $10M. So no, not jealous at all.

PS oldest is a senior and got into a top 20.

Lol sure. I knew you’d post a pathetic and desperate response like this.

Well it's true. Sorry you're jealous we can afford private school and also be full pay for top university.

No one is jealous of an idiot. And your stats aren’t high enough to brag about.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I never said I can't afford private school for my kids. I choose not to, because I like to spend my money where there is value and good return on my investment. My kids go to very good public schools. I am a product of public school system myself and I don't think I was disserviced by it. I just don't buy into the notion that private schools are necessarily better.

We try to spend our money wisely, make investments, and take care of our kids and their future in other ways. Yes, we take European vacations as a family. I think it is important for my kids to learn about different cultures and be exposed to different ways of thinking. But no, I am not materialist and selfish as you seem to suggest.

You’re fine. PP is just a jealous loser who makes less than you and stretches to send her kids to private. She can’t stand it when more successful people don’t validate her decision to send her kids to private, and she’ll throw a bigger fit when her kids get into worse colleges than all the public school kids.

I am the PP and yes, we did sacrifice initially, but our HHI is very very high now and our net worth is over $10M. So no, not jealous at all.

PS oldest is a senior and got into a top 20.

Lol sure. I knew you’d post a pathetic and desperate response like this.

Well it's true. Sorry you're jealous we can afford private school and also be full pay for top university.

No one is jealous of an idiot. And your stats aren’t high enough to brag about.

Welp, I said over $10M. It's actually $18M. I didn't want to brag too much, but there you have it.

[Anonymous]

Anonymous wrote:Regarding college acceptances, if you look at the matriculations that are posted, a much higher percentage of senior class ends up at top 20 universities in private schools than public schools. That is a fact. Wonder over to the private school forum where this is discussed quite bit. Sidwell for example probably had 25% of their class get into top 20 schools if I remember correctly. At the Bethesda area public schools, only about 5% of the seniors end up at top 20 schools.

Isn’t this roughly the same number of students though? A school like Sidwell is small.

[Anonymous]

Anonymous wrote:Regarding college acceptances, if you look at the matriculations that are posted, a much higher percentage of senior class ends up at top 20 universities in private schools than public schools. That is a fact. Wonder over to the private school forum where this is discussed quite bit. Sidwell for example probably had 25% of their class get into top 20 schools if I remember correctly. At the Bethesda area public schools, only about 5% of the seniors end up at top 20 schools.

It’s not because private schools are better. Rich parents pay and use their influence to get their kids into top 20 schools. These kids would still end up in top schools if they went to public schools.

[Anonymous]

If one of your kids needs private school then I would look at it as a splurge. When your income goes up then you can consider a second.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No can't afford it.

Just my salary alone (guaranteed income) is higher than your HHI and I don't even count our stock income. We send our kids to public school and bought our house well below what we "can" afford.

Wow what a greedy lousy parent you are. I'll be you drive a $100K car and travel to Europe every year too. But can't afford private school. Your poor kids.

I never said I can't afford private school for my kids. I choose not to, because I like to spend my money where there is value and good return on my investment. My kids go to very good public schools. I am a product of public school system myself and I don't think I was disserviced by it. I just don't buy into the notion that private schools are necessarily better.

We try to spend our money wisely, make investments, and take care of our kids and their future in other ways. Yes, we take European vacations as a family. I think it is important for my kids to learn about different cultures and be exposed to different ways of thinking. But no, I am not materialist and selfish as you seem to suggest.

You’re fine. PP is just a jealous loser who makes less than you and stretches to send her kids to private. She can’t stand it when more successful people don’t validate her decision to send her kids to private, and she’ll throw a bigger fit when her kids get into worse colleges than all the public school kids.

I am the PP and yes, we did sacrifice initially, but our HHI is very very high now and our net worth is over $10M. So no, not jealous at all.

PS oldest is a senior and got into a top 20.

Lol sure. I knew you’d post a pathetic and desperate response like this.

Well it's true. Sorry you're jealous we can afford private school and also be full pay for top university.

No one is jealous of an idiot. And your stats aren’t high enough to brag about.

Welp, I said over $10M. It's actually $18M. I didn't want to brag too much, but there you have it.

Keep trying. We’re still not impressed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Regarding college acceptances, if you look at the matriculations that are posted, a much higher percentage of senior class ends up at top 20 universities in private schools than public schools. That is a fact. Wonder over to the private school forum where this is discussed quite bit. Sidwell for example probably had 25% of their class get into top 20 schools if I remember correctly. At the Bethesda area public schools, only about 5% of the seniors end up at top 20 schools.

It’s not because private schools are better. Rich parents pay and use their influence to get their kids into top 20 schools. These kids would still end up in top schools if they went to public schools.

This.