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[quote=Anonymous]There’s a considerable lack of sophistication in the responses here. It looks as if most PPs are considering OPs assets to be finite and not taking into account growth (only possible downturn), cash flow, or time.

That 900k could easily be diminished by 4 percent a year, throwing off 36k. OP also mentioned RMDs (presumably taxable?) of $25k currently. That will likely go up. Perhaps there is also salary growth.

Looking just at the 600 left after using 300 earmarked for college, that throws off 24k at a 4 percent spend down. Assume that 300 is higher by the time one or both kids go to college - it would be reasonable to plan for $40k per year per kid from that fund. Plus the $24k from the 600 and the $25k from the RMD and that’s already $99k per kid, assuming they don’t overlap in school. Some of that will be taxable reducing the amount available but still within reach when cash flow is taken into account.

Then factor in the likelihood that BOTH kids get in to an Ivy. It’s more likely that neither will, or just one with the second going somewhere lower cost. Is it doable? Yes. These numbers don’t even factor in cash flow. OPs costs are low. If they reduce their retirement contributions they can certainly also contribute a considerable amount from cash flow, so there are multiple scenarios to make this work.

Of course, they also need to consider the impact on future wealth. While there are multiple scenarios where there would not be a significant hit on overall net worth, this would certainly reduce the actual value of future net worth, not least because it limits not only the money removed but also the growth potential of those funds.[/quote]

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