college aid question

[creditcardfree]

I'm assuming it stands for Mr. Money Mustache, a site dedicated to early retirement.

Yes that is who they are referring to.

[Like2Plan]

Yes they look at assets but it doesn't look at retirement assets. Do a search on it. They are going to hit your taxable accounts like crazy but leave retirement savings alone.

MooseBucks,
My thought is if a person is planning to retire earlier than 59.5 (or earlier than 55), they may have assets that are not in the normal retirement type accounts. While the early retiree might be planning to use those assets as a bridge to normal retirement accounts, FAFSA may not view those assets as protected retirement assets.

[MonkeyMama]

MooseBucks,
My thought is if a person is planning to retire earlier than 59.5 (or earlier than 55), they may have assets that are not in the normal retirement type accounts. While the early retiree might be planning to use those assets as a bridge to normal retirement accounts, FAFSA may not view those assets as protected retirement assets.

Exactly.

In addition, how many early retirees are *only* saving in their retirement accounts? They save far beyond their retirement accounts.

[LivingAlmostLarge]

I'm confused why you think someone who was smart to save and retire early, should get a break on paying for college? The 'breaks' that are given are for those that have a true need. They have very little to no income or assets. I know you and your husband have wonderful income and want to buy a house and retire early, but why do you think you should get a break when you have the income and assets when others do not have those same assets?

Just trying to understand.

Actually MMM has touched on it and says he's saved probably enough to send Jr back to canada for college. But hasn't mentioned how he proposes paying for it in the US. I think he said they'll see what happens.

Nope. I don't expect breaks I am curious if any FIRE retirees are in the boat and what happens? Plan for the worse and hope for the best. I have no idea but it definitely will affect our decisions.

RE? Maybe we'll be forced to. I've been meeting a lot of people in their late 40s and 50s being downsized. Their expectations of making what they were making is very low. Quite a few have changed careers. This does affect what they were expecting to help their children.

I am curious if some FIRE people aren't FIRE because they were laid off and forced into? Not a bad thing, but it can and could happen. I can't predict if we'll make it to funding college fully.

If I had to guess the answer is Yes, BUT big caveat, I'm suspecting at the rate we're saving we'll have to cash flow some of it at that point in time versus having it saved, but I could be wrong. Another assumption is what if do save what we think is adequate $15k/year*8 (2 kids current tuition at public university) puts us at $120k and what if it's not enough and we've retired?

I do read the FIRE blogs. Many who have done it I have yet to read about people who have done it with kids college age. Many are without or not planning on having kids. Some are just having their 1st child and starting out. And others have young children. So I'm curious about those a bit older who've been retired say 10 years with now 14-18 years old and what's happened to college? Or pulling the trigger with older kids?

MMM, Financial Samurai, Root of Good, Frugalwoods are all FIRE blogs but none have older children. I don't think I've seen a post either about it.

[creditcardfree]

If I had to guess the answer is Yes, BUT big caveat, I'm suspecting at the rate we're saving we'll have to cash flow some of it at that point in time versus having it saved, but I could be wrong. Another assumption is what if do save what we think is adequate $15k/year*8 (2 kids current tuition at public university) puts us at $120k and what if it's not enough and we've retired?

We have cash flowed some of our daughter's education so far. Not all of it was saved before she started. But I can see how that would be different if no income was coming in after FIRE is achieved.

Something to think about is that cash flow could come from part time work, just for the purpose of helping pay for college without dipping into the early retirement funds and avoid loans.

[mom-from-missouri]

I am getting ready to go back to college this fall. I already did my FASFA. What I find is odd, is that we have 2 daughters in college, and all of us are reporting the same income--which is that of my husband and I. Yet, we each qualify for different amounts of loans and grants, with me being awarded the most.

Also found out, that an annuity payment does not count as income if it is the result of an injury lawsuit. I get it from an accident that ultimately killed my former husband. I don't pay taxes on it or have to report it as income on any forms. I thought that odd, but have been told that by 3 different attorneys, and 3 different college financial aid departments. (too bad the monthly payment isn't larger...)