New pp here. I'm going to pull my TSP out and pay off my house with it so that I don't have to worry about a house payment. I have no savings aside from the TSP.

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Anonymous wrote:Being RIFed and then tapping into your depleted TSP is a double or triple whammy.

I don’t care about retirement. I just want my kids to make it out okay.

your kids will do better if you can model good financial strategies in lean times, rather than blowing up your savings to continue passing as solvent when you aren't.

taking care of financially irresponsible parents was a giant burden, made worse because a lot of their profligate spending was in fact to keep up appearances. did i benefit from my moms success at clinging to the very bottom rung of middle-class existence? yes, of course. but i might have made it out anyway if they had instead given me the tools of frugality and careful investment and executive function.

You need to finished paying for college for kid 1 from the 529 - stop cash flowing it - she’s already a junior so you can’t move her now. Then use the remainder of the 529 for kid 2. At the same time you need to start saving for a new 529 for kid 3. But the current 529 will be completely used up by the first two kids, plus you will have to pay additional for kid 2 even if they go instate.

But you cannot even consider touching your retirement. And the RIF’d person needs to focus heavily on finding a new job.

Anonymous wrote:

Anonymous wrote:OP- you came here for financial advice. Everyone is telling you not to tap into your TSP for cash flow when you have money set aside for an emergency, will get months of severance pay, a working spouse, and 300K in funds for college, and one of your kids is more than half way done with school!

It will be far worse for your kids if you don't have enough for retirement. They will worry about you and that will impact their future more than college loans or state school.

I came here asking how to withdraw from TSP and what qualified as hardship. Instead I got got judgement.

Because what you’re trying to do is akin to poking your eyes out when you just need a pair of glasses.

Your kids won’t thank you for paying for private colleges when they have to support you when you’re elderly and destitute for 20 years.

I don’t think it’s wise to blow your retirement while counting on a govt pension and social security given the current administration.

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Anonymous wrote:I need to stop reading this site! My husband and I do not have kids but only have about $70K liquid…and people on here are saying $100K is nothing…

When you don’t have kids you don’t need a lot of money. You can pack up and rent an apartment anywhere. Worse comes to worst, live in the wild and hunt for food.

Kids change everything.

We want to have children though…I am not being dramatic when I say the current economy is making us reconsider. Which is unfortunate because we are already early 30s.

I wouldn’t let it bother you. We had our first during the recession, after one of us lost our job. Everything turned out fine.

Our saving grace is that we have a low mortgage ($2500) and a low rate (2%) so we are throwing equity into our home.

Thank you for sharing this, it made me feel better.

If by that you mean you are paying extra on your mortgage, I don't have the words to describe how dumb that is.

Anonymous wrote:OP- you came here for financial advice. Everyone is telling you not to tap into your TSP for cash flow when you have money set aside for an emergency, will get months of severance pay, a working spouse, and 300K in funds for college, and one of your kids is more than half way done with school!

It will be far worse for your kids if you don't have enough for retirement. They will worry about you and that will impact their future more than college loans or state school.

I came here asking how to withdraw from TSP and what qualified as hardship. Instead I got got judgement.

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Anonymous wrote:I am confused about the $5K in tuition a month while there is $300K in the 529. I am also confused about $500 a month for health insurance when one of you is a federal employee.

I am too! The 529 is there for college tuition. Even if you split it into three, there's still some money there for the first. Your savings are more than OK (seriously- almost a year's worth of expenses). I'd hold off on making any decisions until you have more information. I'd talk to the financial aid office and see what kind of aid you might get though.

We were paying out of cash flow as $300 won’t pay for all 3 kids to go to private college, and we may be retired by time youngest goes.

You’re 50, one of you is losing your job, you’re talking about sending 3 kids to private with $300,000 total in 529s, and you may be retired by that time.

Is this a troll post? It has to be.

I'm a PP and I'm definitely thinking troll at this point too. Nobody thinks they can put 3 kids through private college on $300k income with only $100k for each kid in 529s, while also nearing retirement age, with not much in retirement savings. This is all made up.

For retirement, we had $1 million in TSP, a pension with 30 years for each of us, and then we would sell the house. That seemed like a reasonable plan.

Sending a kid to private college on a $300k income was not a “reasonable” plan, it’s the root of most of your issues right now. But for that, your situation would not be as dire.

So no one is going to private schools unless they make $400k???

Not with 3 kids. You can, but you’ll end up like OP.

Better bet (and the one we are taking on a similar income) is to send the kids to state schools. If they want to go private they can attempt that at the masters level.

We also live in the same house we bought in 2012. OP decided to move during the crazy bubble times we are currently in.

Financial choices matter. And sometimes the consequences of those choices don’t become apparent until much later.

That’s nice you bought a decade ago. We didn’t have that option.

Anonymous wrote:OP- you came here for financial advice. Everyone is telling you not to tap into your TSP for cash flow when you have money set aside for an emergency, will get months of severance pay, a working spouse, and 300K in funds for college, and one of your kids is more than half way done with school!

It will be far worse for your kids if you don't have enough for retirement. They will worry about you and that will impact their future more than college loans or state school.

The poor second kid is going to kid screwed here so that Kid 1 can go to a school “like Duke” that OP cannot actually afford. Maybe they will recover in time for Kid 3, but not likely.

OP- you came here for financial advice. Everyone is telling you not to tap into your TSP for cash flow when you have money set aside for an emergency, will get months of severance pay, a working spouse, and 300K in funds for college, and one of your kids is more than half way done with school!

It will be far worse for your kids if you don't have enough for retirement. They will worry about you and that will impact their future more than college loans or state school.

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Anonymous wrote:I am confused about the $5K in tuition a month while there is $300K in the 529. I am also confused about $500 a month for health insurance when one of you is a federal employee.

I am too! The 529 is there for college tuition. Even if you split it into three, there's still some money there for the first. Your savings are more than OK (seriously- almost a year's worth of expenses). I'd hold off on making any decisions until you have more information. I'd talk to the financial aid office and see what kind of aid you might get though.

We were paying out of cash flow as $300 won’t pay for all 3 kids to go to private college, and we may be retired by time youngest goes.

You’re 50, one of you is losing your job, you’re talking about sending 3 kids to private with $300,000 total in 529s, and you may be retired by that time.

Is this a troll post? It has to be.

I'm a PP and I'm definitely thinking troll at this point too. Nobody thinks they can put 3 kids through private college on $300k income with only $100k for each kid in 529s, while also nearing retirement age, with not much in retirement savings. This is all made up.

For retirement, we had $1 million in TSP, a pension with 30 years for each of us, and then we would sell the house. That seemed like a reasonable plan.

Sending a kid to private college on a $300k income was not a “reasonable” plan, it’s the root of most of your issues right now. But for that, your situation would not be as dire.

So no one is going to private schools unless they make $400k???

Not with 3 kids. You can, but you’ll end up like OP.

Better bet (and the one we are taking on a similar income) is to send the kids to state schools. If they want to go private they can attempt that at the masters level.

We also live in the same house we bought in 2012. OP decided to move during the crazy bubble times we are currently in.

Financial choices matter. And sometimes the consequences of those choices don’t become apparent until much later.

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Anonymous wrote:

Anonymous wrote:I am confused about the $5K in tuition a month while there is $300K in the 529. I am also confused about $500 a month for health insurance when one of you is a federal employee.

I am too! The 529 is there for college tuition. Even if you split it into three, there's still some money there for the first. Your savings are more than OK (seriously- almost a year's worth of expenses). I'd hold off on making any decisions until you have more information. I'd talk to the financial aid office and see what kind of aid you might get though.

We were paying out of cash flow as $300 won’t pay for all 3 kids to go to private college, and we may be retired by time youngest goes.

You’re 50, one of you is losing your job, you’re talking about sending 3 kids to private with $300,000 total in 529s, and you may be retired by that time.

Is this a troll post? It has to be.

I'm a PP and I'm definitely thinking troll at this point too. Nobody thinks they can put 3 kids through private college on $300k income with only $100k for each kid in 529s, while also nearing retirement age, with not much in retirement savings. This is all made up.

For retirement, we had $1 million in TSP, a pension with 30 years for each of us, and then we would sell the house. That seemed like a reasonable plan.

Sending a kid to private college on a $300k income was not a “reasonable” plan, it’s the root of most of your issues right now. But for that, your situation would not be as dire.

So no one is going to private schools unless they make $400k???

I wouldn’t even do it at $400k.

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Anonymous wrote:

Anonymous wrote:Being RIFed and then tapping into your depleted TSP is a double or triple whammy.

I don’t care about retirement. I just want my kids to make it out okay.

You will when you are in your 60s and it becomes real.

You have no idea where I came from. My grandparents never finished high school and lived off social security in parts of the country you would never set foot. If you are willing to move, social security and a 20 year fed pension I will be fine.

Anonymous wrote:

Anonymous wrote:Being RIFed and then tapping into your depleted TSP is a double or triple whammy.

I don’t care about retirement. I just want my kids to make it out okay.

You will when you are in your 60s and it becomes real.

Anonymous wrote:Being RIFed and then tapping into your depleted TSP is a double or triple whammy.

I don’t care about retirement. I just want my kids to make it out okay.

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Anonymous wrote:

Anonymous wrote:I am confused about the $5K in tuition a month while there is $300K in the 529. I am also confused about $500 a month for health insurance when one of you is a federal employee.

I am too! The 529 is there for college tuition. Even if you split it into three, there's still some money there for the first. Your savings are more than OK (seriously- almost a year's worth of expenses). I'd hold off on making any decisions until you have more information. I'd talk to the financial aid office and see what kind of aid you might get though.

We were paying out of cash flow as $300 won’t pay for all 3 kids to go to private college, and we may be retired by time youngest goes.

You’re 50, one of you is losing your job, you’re talking about sending 3 kids to private with $300,000 total in 529s, and you may be retired by that time.

Is this a troll post? It has to be.

I'm a PP and I'm definitely thinking troll at this point too. Nobody thinks they can put 3 kids through private college on $300k income with only $100k for each kid in 529s, while also nearing retirement age, with not much in retirement savings. This is all made up.

For retirement, we had $1 million in TSP, a pension with 30 years for each of us, and then we would sell the house. That seemed like a reasonable plan.

Sending a kid to private college on a $300k income was not a “reasonable” plan, it’s the root of most of your issues right now. But for that, your situation would not be as dire.

So no one is going to private schools unless they make $400k???