Reply to Should we increase our life insurance?

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[quote=Anonymous]If you die, your kids will also get your 401K and house, so add that into the amount of money you would leave to them if you both go at once.

I would think that 1.2M plus 401K and proceeds from sale of your house would be enough.  This is assuming you have equity in the house.  [b]We have TSPs (federal employees), I have a very small Roth IRA, and DH has a very small 401k- we only contribute to the TSP at this point.  We do have equity- about $120k.[/b]

I would put more into 401k instead -- they would still inherit it but it can be used for your retirement too. Or more into 529.  [/b]Would you still recommend increasing the TSP then?[b]

Figuring that daycare for two kids is $20 per year, but only for the next couple of yers.  Then they will be in school and the cost of aftercare is about half that.  You will need that until middle school.    So that's about $120K in childcare expenses that you need to allow for.

Will your sister need to move to house them?  Could she live in your current house? [b]It could work either way- she has a large (larger than our SFH!) townhouse, so there certainly would be enough room for the kids to live with her.  However, though she lives 10 mins awway, she's not in our schooling zone, so once they start school, I would imagine she'd want to move to our place b/c it would keep the kids in their current school. It's a good reminder to discuss this with her, though.[/b]

I think a lot depends on your retirement and 529 assets, how much you owe on your house, etc. [b]Don't judge- but we don't have a 529 or any college savings for them yet.[/b]

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