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Why you might need to bake another $170k* into your retirement nest egg

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  • VagabondMD
    replied




    My wife and I are going to sell the house and move into a (small) condo when the last kid starts college.

    If they graduate on time and get good jobs, we might even tell the kids where we moved. ????
    Click to expand...


    I like the way you think.

    Leave a comment:


  • Hank
    replied
    My wife and I are going to sell the house and move into a (small) condo when the last kid starts college.

    If they graduate on time and get good jobs, we might even tell the kids where we moved. 

    Leave a comment:


  • AR
    replied
    This is something I worry quite a bit about.  My kids are way to young for me to have any specific concerns yet, I just know it's a fairly common issue and I want to be prepared if the need arises.  Also I've got healthy aging parents who aren't that well off to think about.  Those things push the number I need to retire way up.

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  • veritablpenguin
    replied




    Bounce back kids happen. I think it is hard to plan for this. I suspect it is more than $6800 if it happens.
    Click to expand...


    Yeah, I would think the distribution would be fairly bimodal: it will either be $0 or way more than $6800...

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  • Hatton
    replied
    Bounce back kids happen. I think it is hard to plan for this. I suspect it is more than $6800 if it happens.

    Leave a comment:


  • q-school
    replied
    I'm planning on my kids giving me and my wife 6500 a year each so I am subtracting rather than adding. I will give it back when I'm dead. Ymmv.

    I'm also planning on living in their basement to reduce my costs further.

    If they keep listening to me and my amazing plans they will be FIRE by college graduation!

    Leave a comment:


  • Why you might need to bake another $170k* into your retirement nest egg

    Somewhat of an offshoot from a blog posted elsewhere   , in which there was some discussion of the unexpected costs of raising children, this Merrill Lynch survey of retirees and pre-retirees over 50 indicated that the average paid $6800 toward expenses for their adult children in the last year. I know that this would never be a concern for the members of this forum , but it is out there for many regular folks, and I have seen a considerable amount of continued financial support of young adults in friends, colleagues, and within my family (not my kids yet as they are still teens).

    At any rate, I have linked the ML study. I think that there is some good info and perhaps a little hype, too.

    https://mlaem.fs.ml.com/content/dam/ML/Articles/pdf/ML_Finance-Study-Report_2017.pdf

    (The adult children issue is on page 19.)

    *$6800 x 25 = $170k (using the 4% rule to come up with the amount needed to prefund this expense)
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