<p>Our family at present is on an expat assignment in Asia. Nearly a year down, one to go. Of course expat pay is higher for the inconvenience, so we are able to put money aside that we might not otherwise be able to. Our assignment will be over when my son graduates from high school.
Through this extra income and what we previously saved, we may be able to have enough in the bank to pay for my other sons last 2 years of college at about 30K each, and 4 years at a decently priced private school for my younger son. I realize that this is a good problem to have, and it is the only reason I can stand being so far from home in a not so great place.</p>
<p>The question is should we pay it all for college? Yes we have a 401K, but what is that worth anymore. We're just turning fifty and we could easily spend every dime of our savings on college when it's all done. Our income will drop by at least a 1/3 when we come back to the states.
What's everyones take on savings and using them for college without much regard to retirement?</p>
<p>My thinking is - save for retirement first. Once you’re comfortable with those savings, then look at paying full fare at a private college. You mention $30K for your son who’s currently in college, which I presume is either a public school or a private school with a merit scholarship. If you’re paying the full cost of your second son’s attendance at a private college, that will be much more - at least $20K more per year unless he too receives some merit aid.</p>
<p>Kids can get an excellent education at any number of colleges, including the more affordable ones. You can’t really save for your retirement once you’ve retired, though. So I think that retirement is the more compelling need. If you’ve run some of the retirement calculators and are on track to reach your goal, remembering that you can save much more once college is over, then I’d certainly pay for a private school. I do think that’s a worthwhile expense if - here’s the tough part - you’ve got the money.</p>
<p>You need to take your retirement needs into account. It is not a good idea at all to spend all your savings if you do not have anything else set aside for retirement.</p>
<p>It depends if grad. School is in plan. If so, it is better to apply to colleges that tend to give lots in Merit Scholarships and they pay or help to pay for Grad. School. This is the way we have approached it. D. has been on full tuition Merit $$ in UG and we are planning to help with Med. School. We have no plans to retire, although if we are kicked out at the age of retirements, we know we will not find another job. We are very close to retirement age.</p>
<p>I would spend some time learning how to better manage your retirement assets. It’s something that certainly can get neglected in the middle of jobs and raising kids.</p>
<p>My husband is a CPA and financial adviser. His advice to clients is always take care of your retirement first before college. He has so many clients who are struggling financially in retirement right now that he has developed a pathological fear of being poor in his old-age. And these were people who made good incomes during their working years and didn’t save enough. Many people are living into their 80s these days, so unless your planning on having your kids support you, retirement comes first.</p>
<p>^^completely agree with your husband. We did save for retirement, and thought we were golden. We were also overseas, like the OP, which meant I was not working and I did not return to work when we came back to the US because we really thought we were all set financially. But you don’t know what the future holds. My husband got laid of well before he planned to retire (not retiring isn’t always an option you get) then his age followed shortly by some major health problems meant he did not get re employed. Thank goodness we had saved for retirement. But we have had to live on it for longer than expected so between that, medical bills, and the stock market woes of the last few years we are not as golden as we thought. In fact I am trying to get back in the job market in my 50s.</p>
<p>I’ll add my voice to the choir … take care of your retirement needs first. There will be PLENTY of opportunities to help your sons financially … there may not be othere opportunities to fund your own futures.</p>
<p>We will be poor even with $1mln for retirement. They will be mere paper as gov. dilutes our money as we speak. Another reason to spend some good amount now while they are still called money.</p>
Well… Someone’s been listening to a certain gold salesman with a TV show.</p>
<p>Anyway, Helpfulmommy, you don’t really specify what your retirement savings are like. You say you have a 401k and express doubt as to its worth, but that could mean a lot of things.</p>
<p>It seems like, if you don’t already have a decent amount for retirement, that’s something that needs to be taken care of. However, that doesn’t mean you can’t also put a significant amount away for your son. The way I see it, a decent retirement is important, followed by putting money away for education, followed by “extra” for retirement.</p>
<p>Just because a salesperson says it’s true doesn’t mean that it isn’t. Of course I bought my gold and silver back in 2000 and 2001 when everyone was trashing it.</p>
<p>It’s important to manage your retirement funds well - things are volatile and the world is a very uncertain place.</p>
I was not referring to you saying to include gold and silver in retirement, I was referring to another poster saying that people saving money for retirement now would be poor even if they had a million dollars.</p>
<p>“Well… Someone’s been listening to a certain gold salesman with a TV show.”</p>
<p>-No, I have been listenning to news about gov. printing money as we speak without telling us. They have printed about $3 trlns that are not backed by anything as far as I heard. They are basically counterfeit. If one thinks that it is not diluting what we have, sorry, I disagree. I do not care about any kind of advertising and I do not own gold. I just feel like spending my money now while they have some value.</p>
<p>OP, if you don’t save for retirement first (and way more than you may think right now) you will be “retired” as an ex-pat, in some far away place like you are now, but without the income and the means to live large and visit family in US at will. You are a family person, or else you would not even write this post- so make sure you have enough to put yourself in your grandkiddy’s life in some meaningful way. Does that help? Make you feel less selfish? Your boy’s can get a good education in many ways.</p>
<p>And you can also die long before you enjoy your retirement savings…enjoy life NOW,don’t wait to enjoy your money,though be dilligent about saving for retirement</p>
<p>Part of enjoying life, at least for some of us, is knowing that those we live behind (if we die early), will have the financial resources to live out their lives or into adulthood.</p>
<p>Can you extend your contract a couple more years? I have friends who work in head hunting agencies overseas and said a lot of expats come calling seeking other opportunities when their contracts are up. They are used to the more extravagant lifestyle with the companies providing housing allowances, private education for kids and all the tax benefits.</p>
<p>Only you and your husband can calculate whether you have enough for retirement. Some people allow their kids to take out small loans to assist with college expenses and be financially responsible in their education.</p>
<p>Can your kids attend any state publics since you are overseas and I assume you have given up any state residencies?</p>