Life's big ticket items to save for

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2m2037
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Life's big ticket items to save for

Post by 2m2037 » Thu May 18, 2017 12:23 pm

I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:

aristotelian
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Re: Life's big ticket items to save for

Post by aristotelian » Thu May 18, 2017 12:43 pm

imperio wrote:I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:
Bwhahahahaha. Lots. I wish you could just budget for it but I wouldn't know where to start. There is tremendous variation depending on what kind of school you choose, health insurance, college etc, as well as your own income.

Whether you are saving for a down payment on a house, your next car, or kids college, it all comes from the same portfolio. I think the biggest thing is just to start saving, both to build your liquid cash in case of major expenses, and to get a head start toward retirement. Overall, start saving now, and keep living within your means.

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ruralavalon
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Re: Life's big ticket items to save for

Post by ruralavalon » Thu May 18, 2017 12:44 pm

Congratulations on your upcoming wedding :) .
imperio wrote:I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:
Saving for shorter term spending (within the next 5 years) generally should be in very safe investments like federally insured savings accounts, federally insured CDs, a money market fund as rates improve, or a good credit quality short-term bond fund.

You wedding expenses covered. A home down payment is a big ticket expense, but it sounds like that is not in your immediate plans. If you have good medical insurance, then you have the big ticket items covered.

Children do cost a lot to raise. For raising children college expenses are the big ticket item. 529 accounts are available for saving up for college expenses.

But first get your long-term/retirement investing planned and started. Start your 401k,403b, 457, TSP or other work-based account, and start an IRA for each spouse if eligible. Above all, live frugally well within your means. and start right now on saving and investing.

Then start dreaming about that Porsche :D .
Last edited by ruralavalon on Thu May 18, 2017 12:47 pm, edited 1 time in total.
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CoAndy
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Re: Life's big ticket items to save for

Post by CoAndy » Thu May 18, 2017 12:46 pm

I think, depending on where you are financially, you should lay the solid foundations right now. In other words, invest at least 15% into your 401(k) (or other retirement account), pay off any consumer debt you may have, build up a good emergency fund, and then maybe from there, just start stashing as much money as possible in an Ally savings account (1.05%) for future events that are headed your way.

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Re: Life's big ticket items to save for

Post by Grt2bOutdoors » Thu May 18, 2017 12:50 pm

imperio wrote:I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:
Money magazine calculates the cost to be at least $335K per child. Start saving!
Midlife crisis comes at age 50 - enjoy the next 20 years!
Other big ticket items? - consult your wife. :wink:
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stoptothink
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Re: Life's big ticket items to save for

Post by stoptothink » Thu May 18, 2017 12:50 pm

aristotelian wrote: There is tremendous variation depending on what kind of school you choose, health insurance, college etc, as well as your own income.

Whether you are saving for a down payment on a house, your next car, or kids college, it all comes from the same portfolio. I think the biggest thing is just to start saving, both to build your liquid cash in case of major expenses, and to get a head start toward retirement. Overall, start saving now, and keep living within your means.
This. It varies wildly, depending on your choices. We heard the horror stories too; so far, outside of childcare (which is significantly more than our 15yr mortgage), the cost of raising our two little ones (5 and 2) has been a fraction of what we were told/expecting.

Just start saving. It all eventually comes out of the same bucket.

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Re: Life's big ticket items to save for

Post by new2bogle » Thu May 18, 2017 12:57 pm

I'm with stoptothink.

The best thing you can do is live below your means and save save save. Max out 401k/roth/ira/hsa in some order. Save some for your emergency fund (6 months gross pay is always good). Childcare is expensive and feeding the buggers is expensive (they sure do eat a lot). Don't dress them in Ralph Lauren or Burberry. Diapers are surprisingly cheap ($40/month). Doctor bills can add up if not planned for.

As I near 40 I'm getting an itch for a bimmer. I'm trying not to buy one though - my 8 year old Camry is doing just fine.

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ruralavalon
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Re: Life's big ticket items to save for

Post by ruralavalon » Thu May 18, 2017 1:04 pm

I'll add, although it costs a lot to raise children, pay those expenses out of income don't try to save up for them. Live frugally and have a reasonable emergency fund.
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2m2037
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Re: Life's big ticket items to save for

Post by 2m2037 » Thu May 18, 2017 2:39 pm

ruralavalon wrote:I'll add, although it costs a lot to raise children, pay those expenses out of income don't try to save up for them. Live frugally and have a reasonable emergency fund.
Why so? I assume you mean outside of college fees, which you mentioned were the big ticket item.

2m2037
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Re: Life's big ticket items to save for

Post by 2m2037 » Thu May 18, 2017 2:43 pm

Thanks all. Just wanted to be sure I hadn't missed anything and stumble upon an OH SXXT! moment 10 years down the road.

How do people feel about having kids paying their own way through college? I paid for mine, albeit it not being in the US and hence a lot cheaper in my home country. I worked part time during semester and full time during school breaks to pay down my loan. The parental unit felt that the risk of wasting my wasting my college years partying was lower if I had to pay for it myself. They were correct.

If I do end up raising kids here in the US all the way through college, is it really that bad to tell my kids to buy their own education?

LiterallyIronic
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Re: Life's big ticket items to save for

Post by LiterallyIronic » Thu May 18, 2017 2:56 pm

imperio wrote:How much do kids cost from delivery
We just had a baby in February. The entire cost (the delivery, hospital recovery, tests on the baby, ultrasounds, everything) cost us $12,000. That's with insurance, including maternity coverage. So buckle up.

I'm by no means rich, or even "well-off", so my "big ticket items" list may not have as much overlap as other people.

If you don't count retirement, my biggest ticket item will be a ~$200,000 house. We're nearly ready with the down payment. After that, the next biggest ticket will be my dream car - a DeLorean. It's not a priority right now with the house down payment savings, so I haven't saved anything for that. I'll probably start throwing $500/month into a "DeLorean Savings" as soon as we reach our down payment goal.

The size of "big ticket" drops dramatically after that. I would like to have a really nice sound system and large number of video game consoles connected to the TV. And a great movie collection. And nice computer for every member of the family.

That should be it for multi-thousand dollar purchases. I don't expect to be able to pay much of our baby's college expenses, nor am I budgeting for it.

To save for them, I have simply prioritized them. Can't sacrifice retirement for the house down payment. Can't sacrifice the house down payment for the DeLorean. And so on.

2m2037
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Re: Life's big ticket items to save for

Post by 2m2037 » Thu May 18, 2017 3:00 pm

LiterallyIronic wrote:
imperio wrote:How much do kids cost from delivery
We just had a baby in February. The entire cost (the delivery, hospital recovery, tests on the baby, ultrasounds, everything) cost us $12,000. That's with insurance, including maternity coverage. So buckle up.

I'm by no means rich, or even "well-off", so my "big ticket items" list may not have as much overlap as other people.

If you don't count retirement, my biggest ticket item will be a ~$200,000 house. We're nearly ready with the down payment. After that, the next biggest ticket will be my dream car - a DeLorean. It's not a priority right now with the house down payment savings, so I haven't saved anything for that. I'll probably start throwing $500/month into a "DeLorean Savings" as soon as we reach our down payment goal.

The size of "big ticket" drops dramatically after that. I would like to have a really nice sound system and large number of video game consoles connected to the TV. And a great movie collection. And nice computer for every member of the family.

That should be it for multi-thousand dollar purchases. I don't expect to be able to pay much of our baby's college expenses, nor am I budgeting for it.

To save for them, I have simply prioritized them. Can't sacrifice retirement for the house down payment. Can't sacrifice the house down payment for the DeLorean. And so on.
I think we're in similar situations. Is $12K the norm? If so, we'll need to start saving for that. Might I ask why you choose not to budget for your baby's college expenses?

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Re: Life's big ticket items to save for

Post by miamivice » Thu May 18, 2017 3:08 pm

imperio wrote:I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:
We have saved for:

1) Parent share of college education for our children (we define that at about 75% of 4 year COA, you might define the parent share differently)

2) Our dream home

3) Retirement

Everything else we cash flow.

(We do not take out loans to pay for things, we save up in advance, including cars.)
Last edited by miamivice on Thu May 18, 2017 3:15 pm, edited 1 time in total.

delamer
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Re: Life's big ticket items to save for

Post by delamer » Thu May 18, 2017 3:15 pm

Opinions are all over the place on this forum regarding paying for kids' college educations.

In my state, if your kid spent 2 years in community college and 2 years commuting to an in-state public, the current cost would be about $35,000 (excluding transportation costs). Four years at an in-state college living on campus would be $100,000. Four years at an prestigious private school would be about $280,000.

So think about what you want for your children, and plan accordingly. Look at LiterallyIronic. I find it completely bizarre that someone would be planning to set $500/month for a high-end car, but not a penny for a child's college education.

But that is a choice each family has to make.

miamivice
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Re: Life's big ticket items to save for

Post by miamivice » Thu May 18, 2017 3:22 pm

delamer wrote:Opinions are all over the place on this forum regarding paying for kids' college educations.
I've argued a lot with people on this forum about college education. What I've found is that most everyone on here pays for their children's college but the disagreement lies in whether to save up for it, cash flow it, or pay off the child's loans. But few folks on this forum that have college age children have left them stranded as far as paying for college.

Most popular option on the Boglehead forum seem to cash flow their children's college education.

delamer
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Re: Life's big ticket items to save for

Post by delamer » Thu May 18, 2017 3:29 pm

miamivice wrote:
delamer wrote:Opinions are all over the place on this forum regarding paying for kids' college educations.
I've argued a lot with people on this forum about college education. What I've found is that most everyone on here pays for their children's college but the disagreement lies in whether to save up for it, cash flow it, or pay off the child's loans. But few folks on this forum that have college age children have left them stranded as far as paying for college.

Most popular option on the Boglehead forum seem to cash flow their children's college education.
There have been lots of posts from parents who set a cap on how much they'd pay. For instance, no more than the equivalent of four years in-state or 75% of cost of chosen school.

I am not convinced that most here cash flow college, but I can't prove you are wrong either :o

I do agree that most Bogleheads contribute something toward their kids' college educations.

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ruralavalon
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Re: Life's big ticket items to save for

Post by ruralavalon » Thu May 18, 2017 3:30 pm

imperio wrote:
ruralavalon wrote:I'll add, although it costs a lot to raise children, pay those expenses out of income don't try to save up for them. Live frugally and have a reasonable emergency fund.
Why so? I assume you mean outside of college fees, which you mentioned were the big ticket item.
The aggregate of child raising expenses is very large.

But most child raising expenses are periodic and individually small. Examples are diaper service, food, clothing, child care if both parents work, etc.

Medical expense for children can be large and unscheduled, but you need to get medical insurance for that rather than save up to cover medical issues.

Do you have family medical insurance, and if so are what the deductibles and copays? I understand that deductibles and copays on the policies bought on the exchange can be very large. Deductibles and copays were not large when we were raising our four children, so maybe I'm out of date on this point.

I don't have experience with 529 plans, they didn't exist at the time our children went thru college. We cash flowed the college expenses of our four children. There were no loans, and our children had part-time and summer jobs.
Last edited by ruralavalon on Thu May 18, 2017 3:43 pm, edited 1 time in total.
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KlangFool
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Re: Life's big ticket items to save for

Post by KlangFool » Thu May 18, 2017 3:43 pm

imperio wrote:I'm 30 and getting married this year, planning to have kids in the next few years, and maybe buy a home if we move out of the SFBA. What are some of the big ticket items I should save for? Wedding expenses we've got figured out. How much do kids cost from delivery to when they're out on their own? Anything else anyone experienced... e.g. at 45 men hit a midlife crisis and I should start saving up for a 911 now :wink:
imperio,

Let's start with the big question, how long can you work? Look at your employer and companies in your industries. Do you see people at the 40s, 50s, and 60s working? Are they the minority or the majority? How likely for you to be fully employed until the 60s? 50s? 40s?

The answer to that question will determine whether you need to save for "retirement"? Aka, you will be fully employed until the 60s. Or, you need to save for Financial Independence aka early retirement in the 40s and 50s.

Now, if you need to save for early retirement in the 40s and 50s, you have neither the time and resource for anything else. So, you do not need to worry about anything else. If you can save for early retirement in the 40s and 50s, all other expenses are minor in comparison. And, you can pay for them from your cash flow.

Start with the big question. The rest will fall in place.

KlangFool

P.S.: I save 30+% of my gross income. I do not need to save for any life's big item. They are all small as compare to my financial independence.
Last edited by KlangFool on Thu May 18, 2017 3:44 pm, edited 1 time in total.

giesen5
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Re: Life's big ticket items to save for

Post by giesen5 » Thu May 18, 2017 3:43 pm

The most impactful kid expense for us was daycare. We were young, really just entering our careers and therefore not making a ton of money. Daycare expenses are high and took a lot of our paycheck at that time. Throw in kid #2 and yikes. It was a great day when those expenses were done. At that point we were making a bit more money and I found that it was easy to take those daycare expenses and roll them into savings.

Capsu78
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Re: Life's big ticket items to save for

Post by Capsu78 » Thu May 18, 2017 3:55 pm

imperio,
One of the largest expenses neglected is the cost of an ex-spouse! Do all you can to keep that from not happening...

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Re: Life's big ticket items to save for

Post by Meg77 » Thu May 18, 2017 4:10 pm

Capsu78 wrote:imperio,
One of the largest expenses neglected is the cost of an ex-spouse! Do all you can to keep that from not happening...
Truth.

Most people can't afford to start saving for their kids' college when they are born, much less before they are born. Don't sweat it yet. You could have no kids for a variety of reasons, or special needs kids who won't go to college, or gifted kids who get scholarships that pay for school. The nature of higher education could change dramatically and be paid for by the government, or be much cheaper or occur on line or via trade schools instead of in traditional (expensive) universities. You could end up divorced in a decade, and your future wife's second husband may be loaded and opt to cover college for her kids. Your income could (should?) go up a lot between now and when your oldest future child is 18, and you may be able to cash flow college tuition (especially if you have your future mortgage paid off by then). You could get a surprise inheritance. Your parents, or hers, may opt to help pay for school. My point is, there are lots of variables here that you cannot predict, control, or specifically save for.

The main thing is to progress toward financial independence, save as much as you can in general, avoid debt in general, and thereby give yourself the flexibility to take life as it comes.
"An investment in knowledge pays the best interest." - Benjamin Franklin

stoptothink
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Re: Life's big ticket items to save for

Post by stoptothink » Thu May 18, 2017 4:16 pm

imperio wrote:Thanks all. Just wanted to be sure I hadn't missed anything and stumble upon an OH SXXT! moment 10 years down the road.

How do people feel about having kids paying their own way through college? I paid for mine, albeit it not being in the US and hence a lot cheaper in my home country. I worked part time during semester and full time during school breaks to pay down my loan. The parental unit felt that the risk of wasting my wasting my college years partying was lower if I had to pay for it myself. They were correct.

If I do end up raising kids here in the US all the way through college, is it really that bad to tell my kids to buy their own education?
This is a huge topic for debate here, and we (you and I) are outliers. I as well paid for 100% of my own education and am currently doing it for my wife. We, as of now, have no intentions of paying for the college education of our children. That may change as they are only 5 and 2, but saving for it now isn't just low on the list of our financial priorities, it isn't even on the list.

LiterallyIronic
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Re: Life's big ticket items to save for

Post by LiterallyIronic » Thu May 18, 2017 8:17 pm

imperio wrote:I think we're in similar situations. Is $12K the norm? If so, we'll need to start saving for that. Might I ask why you choose not to budget for your baby's college expenses?
From what the hospital billing department says, yes, $12k isn't atypical. A lot of people, they said, end up getting the government to foot some or all of the bill through various programs, or, alternatively, have their baby delivered and then disappear. I was expecting something more like $8,000, so I was irked it ended up $12k, but it just made a bigger dent in our savings than expected. We were prepared.

As for not saving for college, I guess: 1) It's not that expensive. I just graduated this past December and in-state tuition was $2,600 for 12-18 credits. Get some FAFSA and/or scholarships and tuition can be covered by working full-time during the Summer and part-time during the school year. No idea what will happen to college costs over the next 18 years, though. 2) I have three financial goals in life: retire at 50, a paid off house at 50, and drive a DeLorean. Something that may not happen (not everyone goes to college), may be covered by FAFSA, and/or may be covered by student loans, isn't high priority. 3) We'll probably still end up doing something like, "Here's $10,000, spending it on housing or tuition," eliminating the need to work for the first little while so our baby can focus on school early on.

IMO
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Re: Life's big ticket items to save for

Post by IMO » Thu May 18, 2017 9:21 pm

People seem to be jumping straight to savings for college.

1. How much/what are you doing for daycare? Have seen numbers posted that people pay for daycare that seem very high.
2. In a similar sense, what will they be doing for school? Public or Private? I have seen numbers posted that people pay for elementary, middle school, and high school that seem very high.

People sometimes pay as much for either/both of these, as many pay for college (especially if you factor in the time factor for lost investment growth). Living somewhere that you are happy with public schools can often be one the biggest things you can do to "save."

Oh, and then there's college (private or public)?

Jack FFR1846
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Re: Life's big ticket items to save for

Post by Jack FFR1846 » Thu May 18, 2017 9:54 pm

Using cars:

Wife staying home for 16 years instead of continuing her management job in healthcare.
1 Ferrari LaFerrari Aperta

Son at a top, private engineering college.
1 Lamborghini Huracan

Second son in private high school. (not expensive one)
1 brand new Subaru STi Limited with nav and spare set of BBS wheels and snow tires

Daycare, preschool.
Chevy Aveo



These are my costs. I actually sold my Lotus Elise last year at this time to pay for one semester for son #1.
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FoolMeOnce
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Re: Life's big ticket items to save for

Post by FoolMeOnce » Thu May 18, 2017 10:03 pm

IMO wrote: 1. How much/what are you doing for daycare? Have seen numbers posted that people pay for daycare that seem very high.
2. In a similar sense, what will they be doing for school? Public or Private? I have seen numbers posted that people pay for elementary, middle school, and high school that seem very high.
Daycare costs were a big surprise. We currently pay over $42,000/year total for two kids right now. One is in the infant room, which is a few k more than the next oldest room, and then the next ages up have slower price declines. Overall, we'll end up paying $100-120k per kid to get them through to kindergarten. Planning to use public school, so it will seem like a huge raise when the kids eventually start there.

OP, if you and your future spouse both plan to work after kids, definitely look into daycare and nanny costs in your area in advance so you aren't surprised when the time comes.
Last edited by FoolMeOnce on Fri May 19, 2017 7:00 am, edited 1 time in total.

IMO
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Re: Life's big ticket items to save for

Post by IMO » Thu May 18, 2017 10:18 pm

Jack FFR1846 wrote:Using cars:

Wife staying home for 16 years instead of continuing her management job in healthcare.
1 Ferrari LaFerrari Aperta

Son at a top, private engineering college.
1 Lamborghini Huracan

Second son in private high school. (not expensive one)
1 brand new Subaru STi Limited with nav and spare set of BBS wheels and snow tires

Daycare, preschool.
Chevy Aveo



These are my costs. I actually sold my Lotus Elise last year at this time to pay for one semester for son #1.
Was curious, so looked the higher priced concerns online:

"No price was given on the Aperta, nor was any needed. Of the 200 examples Ferrari will produce for customers, all are sold. But, just in case you're curious, the LaFerrari cost about $1.5 million. Surely, Aperta will demand a bit of a premium over even that. "

And the Lamborghini Huracan (2016 base $267K)

Hope that includes the cup holders :shock: . . . .

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Bodacious
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Re: Life's big ticket items to save for

Post by Bodacious » Thu May 18, 2017 10:33 pm

Welcome Imperio,

I'm 51 and have been married for 22 years and have a 19 year old daughter. I'm confident that you have more expendable income NOW than you will ever have once you get married and have kids. Start packing your lunches now and save everything you can :)

Jack FFR1846
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Re: Life's big ticket items to save for

Post by Jack FFR1846 » Fri May 19, 2017 6:34 am

IMO wrote: Was curious, so looked the higher priced concerns online:

"No price was given on the Aperta, nor was any needed. Of the 200 examples Ferrari will produce for customers, all are sold. But, just in case you're curious, the LaFerrari cost about $1.5 million. Surely, Aperta will demand a bit of a premium over even that. "

And the Lamborghini Huracan (2016 base $267K)

Hope that includes the cup holders :shock: . . . .
The Ferrari is $1.6M (16 years of $100k, assuming no raises).
The Huracan price is correct.
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Fox
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Re: Life's big ticket items to save for

Post by Fox » Fri May 19, 2017 8:24 am

We are 31 years old with a 2.5 year old and 10 month old.

Daycare: 20K per year for both kids, will go down steadily but not completely due to summer child care and after school daycare, etc...

Pregnancy and delivery via cesarean: only paid a couple thousand due to excellent insurance coverage

Both kids had ear tube surgery after half a dozen ear infections...emergency room visits, urgent care visits, and tube surgery added several thousands of dollars per child.

Don't forget to save for the unexpected...my wife had an endocrine cancer (should be cured with surgery a month ago) that we still haven't seen the bill for...

Plan for what you can control (lifestyle, how much to save, etc), but be flexible for what you can't control (economy, health problems, etc).

hafjell
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Re: Life's big ticket items to save for

Post by hafjell » Fri May 19, 2017 9:24 am

We are paying just under $30k per year for day care. After tax. We are paying to work. Get used to that idea. But if you find a good center with qualified people, it will be money well spent.

2m2037
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Re: Life's big ticket items to save for

Post by 2m2037 » Fri May 19, 2017 1:05 pm

FoolMeOnce wrote:
IMO wrote: 1. How much/what are you doing for daycare? Have seen numbers posted that people pay for daycare that seem very high.
2. In a similar sense, what will they be doing for school? Public or Private? I have seen numbers posted that people pay for elementary, middle school, and high school that seem very high.
Daycare costs were a big surprise. We currently pay over $42,000/year total for two kids right now. One is in the infant room, which is a few k more than the next oldest room, and then the next ages up have slower price declines. Overall, we'll end up paying $100-120k per kid to get them through to kindergarten. Planning to use public school, so it will seem like a huge raise when the kids eventually start there.

OP, if you and your future spouse both plan to work after kids, definitely look into daycare and nanny costs in your area in advance so you aren't surprised when the time comes.
Thanks for the heads up. We'll have to figure out whether it's better to both continue to work and pay for daycare, or one person stop work and be a stay at home parent.

2m2037
Posts: 115
Joined: Mon May 08, 2017 4:48 pm

Re: Life's big ticket items to save for

Post by 2m2037 » Fri May 19, 2017 1:07 pm

Bodacious wrote:Welcome Imperio,

I'm 51 and have been married for 22 years and have a 19 year old daughter. I'm confident that you have more expendable income NOW than you will ever have once you get married and have kids. Start packing your lunches now and save everything you can :)
I hate packing lunches!!! But I will if I have to.

2m2037
Posts: 115
Joined: Mon May 08, 2017 4:48 pm

Re: Life's big ticket items to save for

Post by 2m2037 » Fri May 19, 2017 1:08 pm

Jack FFR1846 wrote:Using cars:

Wife staying home for 16 years instead of continuing her management job in healthcare.
1 Ferrari LaFerrari Aperta

Son at a top, private engineering college.
1 Lamborghini Huracan

Second son in private high school. (not expensive one)
1 brand new Subaru STi Limited with nav and spare set of BBS wheels and snow tires

Daycare, preschool.
Chevy Aveo



These are my costs. I actually sold my Lotus Elise last year at this time to pay for one semester for son #1.
My kids are definitely paying their own way through college.

2m2037
Posts: 115
Joined: Mon May 08, 2017 4:48 pm

Re: Life's big ticket items to save for

Post by 2m2037 » Fri May 19, 2017 1:13 pm

Fox wrote:We are 31 years old with a 2.5 year old and 10 month old.

Daycare: 20K per year for both kids, will go down steadily but not completely due to summer child care and after school daycare, etc...

Pregnancy and delivery via cesarean: only paid a couple thousand due to excellent insurance coverage

Both kids had ear tube surgery after half a dozen ear infections...emergency room visits, urgent care visits, and tube surgery added several thousands of dollars per child.

Don't forget to save for the unexpected...my wife had an endocrine cancer (should be cured with surgery a month ago) that we still haven't seen the bill for...

Plan for what you can control (lifestyle, how much to save, etc), but be flexible for what you can't control (economy, health problems, etc).
Hey Fox,

Was insurance for pregnancy/delivery through work or was it an additional personal policy? Also, does insurance not cover your kids' ear infections or is that the cost after insurance kicked in? I'm sorry to hear about that, and your wife's cancer. I wish them a speedy recovery! Thanks for the advice!

2m2037
Posts: 115
Joined: Mon May 08, 2017 4:48 pm

Re: Life's big ticket items to save for

Post by 2m2037 » Fri May 19, 2017 1:14 pm

hafjell wrote:We are paying just under $30k per year for day care. After tax. We are paying to work. Get used to that idea. But if you find a good center with qualified people, it will be money well spent.
:sharebeer

We'll need to figure out if it makes sense for one parent to stay home or for both to work when the time comes. The thought of working full time and coming home to a crying baby might not be the easiest :?

mega317
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Joined: Tue Apr 19, 2016 10:55 am

Re: Life's big ticket items to save for

Post by mega317 » Fri May 19, 2017 1:40 pm

It might be easier than not working and being home with the crying baby all day.

hafjell
Posts: 128
Joined: Tue Nov 10, 2015 8:49 am

Re: Life's big ticket items to save for

Post by hafjell » Fri May 19, 2017 2:50 pm

mega317 wrote:It might be easier than not working and being home with the crying baby all day.
Yes. My wife and I both have opportunities to work late in very social settings and we often lovingly fight over who "gets to work more." I lost this week but will win big next week.

I would plan on being able to cash flow "guy trips." That is a trend I wasn't expecting. My peers are constantly going surfing/skiing/sailing/skiing/hunting/skiing in cool places requiring flights. I'd be prepared to cash flow those however.

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