Early Retirement.... with Young Children. Does this feel reasonable?

michaels · 7 October 2017 at 11:53PM

atush wrote: »

It is specualtion, as those who pay the higher rate only graduated a few years ago and thos graduating int he future. None of them have been working long enough to say if they will pay if off or not.

My point was, and remains, mine WOULD have to pay it all plus the 6%+ interest.

I suspect that the top 30% and bottom 50% will have a pretty good idea that they will and won't pay it off based on degree and uni choice. Some in the middle won't be sure and a few at the top who might have paid it off won't as they choose more socially beneficial work that pays less :T:eek:

TheTracker · 8 October 2017 at 2:49PM

OP, I’m in a similar situation to you, albeit still in my 40s, having kids in 40s, and plan to retire sometime around 52, with kids similar in age to yours. It was 50 before kids

Not much to add to the advice given though. Depends on whether you’ll pay for your kids higher education, and if so whether you do it upfront. Then you have all the residual concerns of helping with house deposits, cars, travel to see you, etc. Sure, every parent has those concerns, but at least for me I feel they are more focused while I’m retiring with them in formative years. All these concerns are highly personal and what matters is knowing what will cost what, and sounds like you have that in check.

atush · 8 October 2017 at 3:55PM

bigadaj wrote: »

Well surprisingly it's not all about you, or your kids.

People need to base their decision on their own circumstances and current knowledge and best guess of any future changes, the default solution however is what is the best option for the majority.

It isnt about me or you or whoever.

But the higher interest only started for recent graduates, therefore there are no studies that will tell you who pays and who doesnt. All I can tell you is, from my experience of 3 recent graduates (and all their friends) is that they all would have had to pay full whack incl interest so making debts of 45K into 80K+ etc.

People need to base their decisons on their own circumstances, the information of those who have graduatd recently- not those who paid 1-3% for their student loans x years ago.

With the BOE due to increase interest rates, we can only assume the interest rates for student debt will climb further.

atush · 8 October 2017 at 4:03PM

TheTracker wrote: »

OP, I’m in a similar situation to you, albeit still in my 40s, having kids in 40s, and plan to retire sometime around 52, with kids similar in age to yours. It was 50 before kids Not much to add to the advice given though. Depends on whether you’ll pay for your kids higher education, and if so whether you do it upfront. Then you have all the residual concerns of helping with house deposits, cars, travel to see you, etc. Sure, every parent has those concerns, but at least for me I feel they are more focused while I’m retiring with them in formative years. All these concerns are highly personal and what matters is knowing what will cost what, and sounds like you have that in check.

A lot of people overconcern their selves with helping with house deposits- over a 50K student debt at a high rate.

I figured to give them a clean slate of no debt, DLs as pad for them to learn and a car (to share) and overseas and local travel up to when they move out. So they stay at home a year or two and leave with thousands in the bank- for a move, a deposit, a new car etc. They dont really need my help.

That isnt to say I wont help with house deposit later (or funds for closing renovation etc). I w ill if I have it.

i chose to pay, so mine would aoy such high interest and have debt hangin over them. So they are free do make choicees that would be harder otherwise.

And this i find kind of insulting

"Some in the middle won't be sure and a few at the top who might have paid it off won't as they choose more socially beneficial work that pays less ".

Sure, if you have rich parents you might make that choice, or if you dont live in a big expensive city etc. But a little insulting to young people trying to make it on their own. Being socially beneficial isnt always a choice some can make.

TheTracker · 8 October 2017 at 4:26PM

atush wrote: »

A lot of people overconcern their selves with helping with house deposits- over a 50K student debt at a high rate.

I figured to give them a clean slate of no debt, DLs as pad for them to learn and a car (to share) and overseas and local travel up to when they move out. So they stay at home a year or two and leave with thousands in the bank- for a move, a deposit, a new car etc. They dont really need my help.

That isnt to say I wont help with house deposit later (or funds for closing renovation etc). I w ill if I have it.

i chose to pay, so mine would aoy such high interest and have debt hangin over them. So they are free do make choicees that would be harder otherwise.

Yes this is a good point and I’ve argued with myself over it. Behavioural economic psychology is fascinating. I’m very much against student fees, politically. And very much for youngsters surviving of their own means. So it’s a battle of whether I neutralise politics I disagree with or let them swim in a world that is inevitably informed by political economic decisions. Time will tell.

atush · 8 October 2017 at 4:36PM

Politics and you are for you to decide. I base mine not on what I had (I paid for US college in the USA along with my parents- no handouts and my OH got a free Uni education incl grants) but on the situation today- which is all I have direct control over.

So in effect, rather than have to pay back student loans (whci unlike most here I had to do at high interest) to put them into the situation that their father had- to leave Uni with no debt, a DL and use of a car, and a place to live (where they pay a small rent but can save laods to move out).

It is fine to beleive like JC that Uni education should be free- but someone has to pay for it (like i did). Be it through higher taxes, lower govt provision elsewhere.

It was a labour govt which decided everyone and their brother shold go to Uni, without thinking aobut if many of those degrees would provide well paid employment. I believe they also came u with the idea of student fees too.

Many here espousing the student debt route never actually had to pay it, and never had to pay high rates of interest either (mine was 9% if I remember correctly).

coyrls · 8 October 2017 at 7:53PM

atush wrote: »

It isnt about me or you or whoever.

But the higher interest only started for recent graduates, therefore there are no studies that will tell you who pays and who doesnt. All I can tell you is, from my experience of 3 recent graduates (and all their friends) is that they all would have had to pay full whack incl interest so making debts of 45K into 80K+ etc.

People need to base their decisons on their own circumstances, the information of those who have graduatd recently- not those who paid 1-3% for their student loans x years ago.

With the BOE due to increase interest rates, we can only assume the interest rates for student debt will climb further.

I don’t understand how you can be confident that the recent graduates you refer to will definitely pay back all their loans or that your children would have paid back all their loans, if they had taken them. In order to know that the loans would be paid off, you would need to know what they are going to earn over the next 30 or so years, which you can’t possibly know. You can make guesses about what they will earn but you really can’t know.

Early Retirement.... with Young Children. Does this feel reasonable?

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