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[quote=Anonymous][quote=Anonymous]22:12 - tht is all very informative, but is assumes that (1) OP and her family have the discipline to implement the strategy (all evidence to the contrary), and (2) they even want to, when it's more likely that th $3000/month will go straight to college tuition payments.  [/quote]

Well I can't model "what if i only sorta follow instructions". As for 2, that college tuition payment is going to exist no matter what they do, so whether or not they pay for it by not contributing $3,000 towards savings (if they sell) or eating into whatever savings they already have (if they dont sell), its going to have to come from somewhere.

And anyway, the college thing is technically an argument for selling as well. Lets say they have $200K in liquid savings today (which it sounds like they dont, but lets pretend) - that $200K can throw off ~$12K in investments per year. Combined with the $3,000 they could be saving thats $48K a year, or for the sake of simplicity, lets say 1 year tuition is $50K.

Sell:

Have	        Interest	        Savings	Total	                Cost 	        Loss
Year 1	$200,000 	        $12,000.00 	36000	$48,000.00 	$50,000 	($2,000.00)
Year 2	$198,000.00 	$11,880.00 	36000	$47,880.00 	$50,000 	($2,121.00)
Year 3	$195,879.00 	$11,752.74 	36000	$47,752.74 	$50,000 	($2,249.26)
Year 4	$193,629.74 	$11,617.78 	36000	$47,617.78 	$50,000 	($2,385.22)

[b]Total	$191,244.52[/b]

Stay:
		Have	 Interest	                        Savings	Total	                Cost 	        Loss
Year 1	$200,000 	        $12,000.00 	0	         $12,000.00 	$50,000 	($38,000.00)
Year 2	$162,000.00 	$9,720.00 	        0	         $9,720.00 	$50,000 	($40,281.00)
Year 3	$121,719.00 	$7,303.14 	        0	         $7,303.14 	$50,000 	($42,698.86)
Year 4	$79,020.14 	$4,741.21 	        0	         $4,741.21 	$50,000 	($45,261.79)

[b]Total : $33,758.35 	[/b]

So in 4 years you can either have $191,000 left in your savings, or you can have $33,000.

All that said, you are right that the OP wont listen to any of this.[/quote]

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