should i pay for my kids college or retire?

Question

i turn 46 next year and i will have 20 years where i work, and i can retire with a good pension that is protected and my twins finish high school next year!

it will cost me about 500,000 to send them threw 4 years of college, i have about 600,000 that i have invested over the years that i have penciled in so i can live the easy life once i retire. my house is paid cars are paid for and i have no debt.

so the q's should i pay for there school or retire and live the good life for the last 25 30 years of my life?

Answer 1

You are going to need more than $600,000.00 to live on for the next 25-30 years. Let the kids work and pay their own way through college. They'll work harder for those grades unless they like throwing their money around. But if you pay for your kids to go through college, then lend them the money. They could pay you back interest free.

Answer 2

If you have such good investments and have such a good job why not work another five/ten years put your children threw college and by then 51 to 56 years old retirement will be all that. At age 46 I do not feel that 600,000 is enough to survive until you die. I mean I really do not feel secure with that . I think age 46 is to young to retire. Work is routine and has a way of making a person part of . Try not working for a while and being out of the mainstream a person can start to feel mighty depressed. Your children will not get what they deserve not going to college. Without an college education you go no where fast. I would feel better about the life of my children knowing I did all I could as their parent to make sure they will be successful.

Answer 3

I think you're too young to retire. What the heck are you going to do with all the free time?

I would send the twins to a local community college for the first year or two. Afterward, they can transfer to a university. You can save on cheap tuition and room and board.

If the twins decide to go to a same university, you may want to find out if you can purchase a two bedroom condo. Twins can live there and you may be able to sell it off at a profit after they graduate.

Perhaps twins can get part time jobs to contribute to the education cost. If they select same classes, they can share the textbooks and save $400 a semester!

Two well educated sons with good jobs will be better for you than two uneducated sons with bad jobs. The later might end up costing more money and heartache/headache.

Answer 4

Considering you misspelled "through" as "threw" , "their" as "there" and you don't seem to know where the caps key is, are you sure these kids are prepared for college? College isn't for everyone and trade school is nothing to be ashamed of. Do you know how much money a plumber makes?!
Plenty, that's how much.
But if you insist they go I reccommend they pay for it themselves.They can work while in college and take out a loan like the rest of us. You worked to get where you are today (wherever that may be) and deserve a nice retirement. You're only 46 though. You've got a long time until you really retire. Invest your money, retirement isn't cheap.

Answer 5

Congratulations on your success at putting a good retirement plan together. There are a few million of us who would like to know how you did it!

I was unable to retire at 46, but chose to pay for as much education for my children as possible. That was important to me personally, and I would not hesitate to do it again. However, at least one financial planner has stated that while the parents/kids can get loans for college, you cannot get loans for retirement. If you use the money to retire, your children will not have to support you later. If you secure an education for your children, they are less likely to return to the nest and require a lot of help. So, either choice will have some advantages.

Answer 6

Sorry dad, you have an obligation to your children. However, you should be getting your financial aid information now. The kids should be applying for scholarships and work study. They may have to go to community colleges or state universities, where costs are lower. They are also responsible for their education and part of their salaries should be set aside for college. If they aren't working, then they should be.

Most parents don't question their kids well being over their own, so I'm not sure where you are coming from but you really come off cold hearted. I believe you have a responsibility to request that your kids do their part, and frankly they will get more out of it if they do, but how you can consider your retirement or their education is beyond me.

Answer 7

Why don't you try finding a 'new career' in a new place and KEEP WORKING. While retirement seems like a 'dream' most people who keep working well into their 70s and 80s are actually healthier and happier BECAUSE they keep working. I'm disabled, but I am a psychologist, and I can do my 'work' here on Y!A. My husband is 49, and he is planning on working 'well into his 70s ... not because we 'can't afford' for him to retire, but to help him stay 'young and active' ... and then, maybe, he'll start a 'whole new career' after that. Who knows? But ... do not 'pay ALL of the children's way through college. Let them 'work' for at least 1/2 of the 'cost' of their schooling and support ... they'll be GLAD for the 'experience' of that when they are 'out in the big world' without your money 'protecting them' from life.

Answer 8

The 500,000 figure seems a bit high for 4 years, unless they're going to an ivy---it should be closer to 300k for out of state/private tuition, (excluding "irrelevant" costs that would have to be paid with or without education). Higher than that you might want to reconsider what school they're going to and whether it could be done more cost-efficiently.

Honestly, it depends on how much you value your kids. This sounds like a weird way to put it, but higher education generally beats market returns on investment. If your kids future consumption is as valuable to you as your own future consumption--put in in your kids, otherwise keep it for yourself. Since you do have that much socked away--your kids might have a harder time securing financial aid until they're determined to be financially independent.

If it were me, I'd pay for the education--but it's not.

Answer 9

First off, even with interest dividends, 600,000 is not really that much money to live off, especially if you plan to need it fo 25-30 years. Have you consulted a financial planner?

Second, paying for your twins education does not need to be an all or none proposition. You can agree to pay a percentage of their education and they can work for the rest.

My father gave me the greatest gift when he paid for my education. It was an investment in my future. I graduated with a B.S. in nursing and have gone on to do quite well for myself.

However, there is something to be said for working for what you want. After I graduated I offered to pay him back. He said "please just let me do this for you." He was proud of me and wanted to give me the gift of a college education. The partial scholarship that I earned helped me to feel that I was contributing as well. For what it's worth, I felt kinda guilty because I knew school was a lot of money. Have you asked your kids what they would want?

Answer 10

It depends. I work in telecommuincations, we have a Union so I will have a decent pension if I stay there for 25-30 years. You are still very young - if you HATE your job - you could retire but things might be tight. Plus, you want to give the best to your kids to help them succeed in life. If you don't hate your job - stay until you just can't stand it any longer. Good luck!