Reply to Late 40s. We have about 3.5X our gross HHI saved. Is that ok?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Well DH and I save and invest separately - spender (him) and saver (me).

Early 40s - I have 15x my income saved and invested (excluding significant home equity and $600k in 529 plans).  About 50% of that is separate property (pre-marriage investments that I kept separate) and the other 50% of technically marital property, but that's only relevant if we get a divorce - I control it as long as we are married, and it's part of my estate.

DH is older and only has 3x saved.

Story of a spender versus a saver. [/quote]

Whoa, 600k in 529s? I'm assuming you have 3 kids? I am also a saver but that's a very high number especially with your savings rate and investment property, you have many means of funding college for your kids.

It is weird to me how antagonistic you are towards your husband and the degree to which you keep your finances separate. My DH and I also have different financial personalities -- I'm more conservative and a saver, he's more risk taking and a spender. But we combine everything and I actually like how our tendencies balance each other out. We have way more total money saved/invested because of my influence -- I insist on high percentages of automatic savings and investing out of our income, and I don't allow lifestyle creep when we get raises, so the money builds up fast. But my husband's greater capacity for risk is why it's grown at a higher rate. I would have much more of our money in ordinary savings were it not for his influence, and we would have missed out on massive gains in recent years. Also he makes sure we actually enjoy life, take real vacations, and reminds me that there's no prize for living like a pauper. We balance each other out and both come out ahead.[/quote]

600K in a 529 and you expect 3+ kids?  Why?  Currently you can expect to spend $40-50K per year for a moderate school, so $200K minimum per kid.  But if they want to attend others, there are tons that cost much more.  So why wouldn't you save for it?  Also, what if your kid wants grad school/proofessional school?  Those can cost $200-300K+.  We just spent $370K+ for 4 years, and are looking at another $200K for just one kid.  Good thing it's in the 529.  The other kid was $160K total for 4 years but that was 6-8 years ago.  [/quote]

PP here. I just don't view 529s as the sole savings mechanism for education, specifically because you can't know how much your kid will need. We would never put more than 250k in a 529 (per kid). The doesn't mean we won't spend more than that on education, but we might not spend much more than that, so I don't want to lock up money I'm an account that is as inflexible as a 529.

So yes, 600k is nuts to me if it's for 1-2 kids. Especially for someone who could likely easily cash flow 30-40k per year, and owns multiple investment properties. What happens if your kid decides to go to a 50k/yr school and doesn't want grad school? We have money in other accounts that is flexibly earmarked. The money is for education if we need it, but could also be used for down payment assistance or other things.

I'm not funding a 529 as though my kid is going to be a doctor when there's also a chance she could be a school teacher (which would mean a cheaper education but might result in us wanting to help more financially when she gets married or has a kid).[/quote]

Saving to fund a child's graduate school seems absurd to me either way. What kind of selfish kid would ask their parents to pay for their medical school or law school?[/quote]

Agree. Dumb way to spend your money [/quote]

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