Anonymous wrote:frankly your after tax brokerage and cash savings is very low for your income level. With mortgage and tuition to gobble up 180k per year you better be in your knees praying each night for those RSUs to pan out. because without that and your extravagant expenses you’re gonna look dead ass broke. Many people who have kids in private school have family money that are the safety net.

They're in their early 30s. Their brokerage and cash savings are absolutely fine. You're just being a jerk.

frankly your after tax brokerage and cash savings is very low for your income level. With mortgage and tuition to gobble up 180k per year you better be in your knees praying each night for those RSUs to pan out. because without that and your extravagant expenses you’re gonna look dead ass broke. Many people who have kids in private school have family money that are the safety net.

keep in mind private schools also heavily pressure you to donate. You loook like a loser if you don’t donate and it’s all published for all to see.

How are you so rich and already have 2 kids in your early 30’s?

Anonymous wrote:Yes you have a huge income but a spending issue. Good brag

That’s literally almost everyone in private school. You’ll fit right in. Bonus if you throw some of that profligate spending towards development.

Yes, you can afford it however it will be tight on salary. Use the bonus/RSU’s for savings. I personally would wait until 3rd to save money if you have good public schools.

Private school all the way. You can afford it plus your salary will most likely increase over time

Anonymous wrote:Denied! You cannot afford it.
Your mortgage is too high.
Your 401k is low.
Your 529s is low.
Your HSA is low.
Your brokerage account is low
Your cash/emergency fund is low.

Everything is low and you are thinking about spending 45K/y on private schools?
This is nuts! This is reckless and crazy.

Haha. This is satire right?

Denied! You cannot afford it.
Your mortgage is too high.
Your 401k is low.
Your 529s is low.
Your HSA is low.
Your brokerage account is low
Your cash/emergency fund is low.

Everything is low and you are thinking about spending 45K/y on private schools?
This is nuts! This is reckless and crazy.

People who haven't been living at a higher income level and adjusted lifestyle are the perfect ones to invest in more for education. If you are planning to max out every saving vehicle and do mega backdoor Roth, you can afford the tuition. Cut some on just the two mega backdoor Roth and you can afford it.
It is also likely that you'd be fine retiring at your recent SES level rather than your updated one, so I think you are too worried.
That you were willing to put so much into your house earlier at what sounds like a much lower income, has ended up being good outcome wise, but could be seen as a riskier decision at the time than private school now. Changing schools if $$ is an issue is also a lot easier than unloading an expensive house in most markets too.

I would save aggressively in the 529s (meaning - the $45k you were planning on spending next year for the 5 year old goes directly to 529s instead) and start each of them in public, with the plan to switch them to private in middle school or sooner if public doesn't work for your particular kid.

You can use the 529 money for private school when you need it, you'll save money over all, and the inherent volatility of the stock payment schedule will stress you out less if your savings are bulked up and you can weather downturns.

I wouldn’t. You are talking about $100k post-tax money and that will only go up every year. Your cash position is low.

Private school is year to year. So if your income drops substantially, you move them to public school. Yes, they might not be happy leaving their friends, but you can do it in the worst case scenario.

Yes you have a huge income but a spending issue. Good brag

I know this question has been asked time and time again, but wondering if the wise folks of DCUM can give some thoughts on if we can comfortably afford private school for 2 kids, ages 4 & 1. We are considering private K-12 for both children at $45k/kid and wondering if we can make it work for the long haul with tuition increases etc.. Both of us work and are fairly young in our careers (early 30s), so we don't have a substantial nest egg to fall back on.

Our stats:
HHI $650k, this is recent and very heavily on stock RSUs. $380k is salary/guaranteed bonus and the remaining is stock
401k: $400k (max out, both have access to mega back door)
529s: $75k (planning to continue to fund $16k/year total)
HSA: $50k (put in max every year and do not use it)
After tax brokerage: $30k
Cash savings / emergency fund: $45k
Home equity is roughly $700k, have about $800k mortgage at 4%; $7.4k / month. No other debt.

Biggest concern is our liquidity and heavy reliance on stock which is volatile. Also concerned with signing up for tuition payments so early on, and needing to maintain high earning power for the next 2 decades.