Sorry for the confusion. I have 2 kids, my older daughter and 1 child with my gf. She doesnt have any other children.
I’m wary of real estate right now as I have a feeling the market is overheated. Where I am also the houses are older and taxes are high. They seem like they could be money pits.
Also I’m relatively young and I’m saving over 25k per year for retirement right now.
Might be good to talk to an independent financial adviser. But your basic assumption is correct - the money in savings will be seen as available for college.
I suspect you are not wrong about the RE market in many areas. But that is going to be a secondary issue in a general weakening of the economy, your pressing needs are to address your current debt and have a realistic plan for your older child’s education. If you are shuffling 25K into your 401K then you are over 50 (that is not young) and if you are not then pay off that debt over banking on investment returns. I think you will pay over $30,000 in interest in your loan. Don’t borrow more money for your kid (that sweetheart 4.5% will pale into the background compared to parent plus costs). Look for merit, look local. Do you have her test scores? GPA?
I’m 38 the 25k includes my employer match.
My kid has 3.8 GPA which somehow only puts her I to the top 1/3 of her class (grade inflation). Waiting to SAT to come back my guess is it will be around 1350-1450.
Is that 3.8 weighted…or unweighted?
What did she get on the PSAT in October?
Has she tried the ACT?
Are your instate public universities an option, and affordable?
The 3.8 is unweighted this high school doesnt give grades above 4.0 even if you take ap classes. But there are several kids with 4.0.
She got around 1300 on psats but has been prepping for the sats pretty hard.
Didnt try acts.
In state college are an option and affordable but she doesnt like it.
She may have to grow to like it…if that is what is affordable!
What is your state? a 1300 PSAT is about 96th percentile, numbers wise it just means there are a lot of kids like her and better competing for merit $$. Keep encouraging the SAT prep and keep up the GPA. Outside of the rarefied nature of College confidential, most students go to their state schools. Few kids get big merit $$ to go to top schools. Your DD and her friends may all well end up at whatever 4 yr is commuting distance. That is the the norm.
Sorry about your age LOL. you are young.
Try the ACT - some kids do much better on it. But don’t go in cold - get the Black Book.and the Red Book and go thru it together.