| 7/15/2023 12:39:29 PM Ikeh89 |
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| Thank you for sharing your update!
I would like to caution you on pulling from your retirement at age 45-49 to pay for children's college. you are far better off than most Americans from a retirement and net worth standpoint, however you are buried in debt still. I would go as far to say as you are too "broke" to send your kid to college, either a cheaper school or find more scholarships would be a better option and need to be options. You are trading your future for theirs and I am shocked a financial advisor would approve of such a move with 721K in debt.
I am honestly not trying to be mean, but I figure this is why we are here, to talk about finances and strategies. I would suggest finding a different advisor and see what they have to say about things. Obviously schools have been chosen and enrolled, but I would look into different schools. I know I don't have all the info so that would change some things, but college child needs to be working full time as well as going to s |
| 7/15/2023 12:41:02 PM Ikeh89 |
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| ...... school if your paying 15K, and if its 15K per semester, this is going to be an expensive road. Again, I know I don't have all the facts, but I'm going off what I do know.
I wish you well, and continue paying off that debt. Again, you are way ahead of America as the average net worth is in the 120K range! Keep killing it. |
| 7/17/2023 5:32:56 PM azphx1972 |
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| I second the caution on borrowing from retirement to pay for kids' education. They can borrow for school, but you can't borrow for retirement. The interest rate on the retirement loan might be low, but the money being loaned out is also not getting the potentially higher growth in the market. Also, as a single parent with a fairly high income, you might want to reconsider the Roth 401k contributions and consider making traditional 401k contributions instead, so that you can save at your marginal tax rate now and pay at your (most likely lower) effective tax rate later. Please disregard if you've already thought through these decisions. Just trying to help. |
| 7/18/2023 2:51:10 PM shootermcgee |
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| I appreciate the comments and input! The $15k is for 4 semesters plus estimated book cost; this is not just one semester. He is taking the max loans he is able to, plus scholarship, that leaves a $15k gap. It's a 5 year TSP loan that will be paid back as aggressively as I am able. The $721k debt is not all mine, I did go halfsies on the land and HELOC. But in case all goes to sh1t, I wanted to account for the total as it currently exists. My financial advisor has not led me wrong yet; he has all the facts and numbers and said this was the best option given our circumstances and upcoming transitions. |
| 7/18/2023 4:05:25 PM mrw04c |
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| Yeah I 3rd this. I wouldn't borrow from retirement to pay for your kid(s) college. Your kids have their whole lives to pay back a student loan, you only presumably have 15-20 years to save for retirement. |
| 9/7/2023 1:43:44 PM shootermcgee |
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| I do appreciate the feedback. Even taking out max available loans, my son was only awarded half of what he needed. And this is not an overpriced school. He was only given like $3750 a year in loans, plus $1500 per year in scholarship. My other choice was to take a Parent Plus loan at ridiculous rates, which was a hard no. |
| 9/7/2023 1:44:46 PM shootermcgee |
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| Sorry it was $3750 a semester. |
| 10/1/2023 1:21:26 PM mydogwantsmetoretire |
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| Just an observation, built your other real estate value equals the mortgage amount. Not sure this is a good investment and would consider selling out of it. This might free up cash or allow for another loan. |
| 10/1/2023 1:23:52 PM mydogwantsmetoretire |
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| In addition, your cash reserves are concerning for the debt load you have in place. |
| 10/14/2023 8:37:56 AM shootermcgee |
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| I'm not sure what the value is, we just closed on the property this summer. So I entered it to match the mortgage for now until I have a valuation to enter. This property is the end game, my current mortgage is temporary until I relocate. I also have almost $22k in cash reserves, but they are allocated for specific things in my budget so I entered the amounts in a way that works for. me. |