Reply to College applications -- apply to $$$$ schools or not?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]You have the money to send both kids to full private. Inlcuding ivy if they get in. They certainly don’t need to be chasing merit but it sounds like you’re going to ask them to? Or go public? Maybe you should step back and think about your priorities. What do you want to do with your money? Invest in your kids? Set up the next generation? You aren’t going to run out of money. Even though it sounds like you’re worried about that. If the market tanks 30%, you’re not going to need access to all of it in the next 24 months - so you’re going to do what you did in the dot com crash and 2008 - wait it out until it comes back. [/quote]

They only have $150K saved for college per kid.  That's in-state pricing, not sending both kids to $90K+ schools.

IMO, we would explain the finances to the kids, discuss their plans (might they want/need graduate/professional school?) and determine the right path.  But whatever you do, unless you are 100% committed to 90K+ per year, make certain your kid knows that, so they can have 75-80% schools that are targets and safeties that will be around in-state pricing (or just a bit more).  DOn't let your kid think they can attend Harvard if they get in if you are not really willing to pay for that.  Also if that's the case, don't let them apply to 80%+ schools that are 90K/year.  [/quote]

This is OP. We have $300k in college savings accounts. I clearly identified all the other sources of funds we have which is in the millions. We also have one more year for one kid and four more years for the other. There’s no doubt that a family with $4.25 million in net worth can afford this. It’s silly to pretend otherwise. As I’ve said our investments increase by more than $100k pretty much every year. We could pay in full and so see our net worth continue to increase.

To be honest, I was expecting some more insightful replies than this. What I’m struggling with — and I thought I’d made clear in my OP — is whether it makes sense to spend that much money on an Ivy League education. [/quote]

Well that is a choice you have to make.  What might the kids need/want as grad school/professional school?  Because at $4.25M net worth, I wouldn't pay $400K for undergrad and another $300-400K for each kid to attend grad school, unless I had that money already earmarked and saved.  Because $4M is not that much for retirement if you are used to living a certain lifestyle.  I wouldn't drain another $1M for my kids education.  But If I had already saved it, or I had $8-10M+, then I might. 
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$4m is “not a lot for retirement”. We live on $100k a year very comfortably. I disagree. We also have 15 more years to add to it, should we chose. OP here.[/quote]

So I guess you plan to work until Both of you are Medicare eligible (65 currently)?   Because if not, you could be paying $15K/year/person once you hit 55 up until 65 (and it increases as you age).  I doubt your $100K per year includes $30K in medical (just premiums...for that you still have a high deductible).

And no, most people in the DCUMland do NOT have a $1K mortgage and live on $100K comfortably when they have a NW over $4M.  If you truly do, awesome.  But I'd question why you didn't already save enough for college along the way, if you truly live on much less than you make?  
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I am curious how this person is living on $100K a year...that seems truly impossible in this area. They pay $20K a year in taxes and $12K a year in mortgage payments, so that leaves $68K for expenses. There is no way they are only spending that for a family of four.[/quote]

Well I think their "100K" is after taxes, but yes after mortgage they have $88K left. For insurance, property taxes, healthcare, vehicles (insurance, gas, maintenance), utilities, food, travel, etc.  
And nobody has a $1K mortgage in the DC area without a massive downpayment.

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