Retiring early with kids is impossible

From one of the most famous advocates of retiring early. I can say with no hesitation that if he can't do it, there is no way I could do it. He had his act together at a very young age and was making wayyy more money than I ever have in his twenties. I'm sure there are a few exceptions who are able to retire early with kids but I'd say it is extremely uncommon. And I've known a few who could have retired early and they are working past retirement age because of grandkids/kids. This makes me very happy to be child-free.

We have a number of people here who have retired early (and some who could retire early if they wanted to). If there was a poll, I bet the average would be extremely high compared with the average person who has kids. And I would also guess that most of the early retirees made an average income.

Part of the question is at what age is early retirement? I've read earlier than 55, 62 (social security states this is early) and 65 (financial planning determines this is early), depending on the resource. It would also be interesting to know this for other countries and if early retirement is possible there.

https://www.msn.com/en-us/money/retirement/opinion-youre-fooling-yourself-if-you-think-you-can-retire-early-with-kids/ar-AAHre0s#page=2

Wow, this guy is setting himself to be vilified with his budget and how he's barely making it on $200k per year. Yeah, he's living in San Francisco and I get it that food is more expensive there but $2200 a month for food for three people? What on Earth are they eating? Stop with the food delivery services and learn to cook for yourself, particularly because he is retired and the Moo doesn't work. $600 a month for entertainment and internet games per month? And of course he's defending his $2000 per month preschool for his Wunderkid? Geez, if you aren't tied to a particular area, and he's not, he could move. He wants to move to Hawaii, which would be cheaper. yeah, cry me a river over these hardships.

He does have some pretty decent articles about retiring early. This one is actually thought provoking.

He explains his wife got unexpectedly prag-nut and they are Geezer Breeders. They thought they weren't able to have brats. This is particulary ugh-worthy.

Quote

It was only after our son was born in early 2017 that I felt a renewed sense of purpose. Before my boy, I felt my purpose was to help educate as many readers as possible about personal finance in order to one day be free. After my boy was born, my purpose has expanded to keeping Financial Samurai running long enough to teach him about operating an online business out of fear he may have a tough time getting ahead. In addition, I now need to live long enough until he finds someone who loves him as much as I love my wife.

Yeah, jobs are being outsourced. Maybe a reason not to breed.

Quote
bell_flower
Wow, this guy is setting himself to be vilified with his budget and how he's barely making it on $200k per year. Yeah, he's living in San Francisco and I get it that food is more expensive there but $2200 a month for food for three people? What on Earth are they eating? Stop with the food delivery services and learn to cook for yourself, particularly because he is retired and the Moo doesn't work. $600 a month for entertainment and internet games per month? And of course he's defending his $2000 per month preschool for his Wunderkid? Geez, if you aren't tied to a particular area, and he's not, he could move. He wants to move to Hawaii, which would be cheaper. yeah, cry me a river over these hardships.

I wondered if this was click bait for his site or not.

Why preschool for a kid who is either two or barely three? By the time the kid is 5 they will have spent around $60K in preschool costs. And the expensive food if neither work is because they don't want to bother making it from scratch? Maybe his plan was to retire and spend what he was spending prior to retirement. It doesn't seem like that is possible at $200K a year on most budgets. Even several million isn't going to last long at that rate.

I think we have to be way more scrappy than this to retire, kids or not.

I know housing costs and arm and a leg in the bay area, but from what I remember from visiting, food in supermarkets was only marginally more expensive than in other areas. They're either eating out a lot, or everything they buy is organic and/or small farm (which is a nice idea, but not something most people can afford).

I retired 11 years ago at age 45 and about a year later I joined an early retirement forum. The subject of kids arises from time to time, and it can sometimes become contentious. There is, however, a significant share of early retirees who have no kids. Personally, I don't know how anyone who has kids can retire early, but that's just me. I know I would never, ever have been able to retire early if I had kids.

What is the age of "early retirement?" This question arises there from time to time, too. There are various degrees, IMHO. Before age 65 is one degree, because that is Medicare age. Before age 62 is another, because that is the earliest one can collect Social Security. Before age 59.5 is still another, because that is when someone can withdraw from an IRA (although there are exceptions to that rule). Still another is before age 55 because someone who leaves an employer at 55 can begin taking withdrawals from his 401k.

With the Affordable Care Act's insurance exchanges introduced in 2014, individual health insurance is a much lesser obstacle to retiring than before. I have surely discovered that after I retired in late 2008.

I think you can retire early with kids - if you earn above average and you are thrifty. After daycare and diapers, so much of childhood costs, aside from the enormous quantities of food they consume as teens, is discretionary spending. (College is maybe the one difficult semi-mandatory expense.) The same is true for many adult expenses; very few of them are not subject to flexibility. If you live your whole life like you make 30k, but actually make 100k, you can retire early.

I retired at 54 with a payed for house and car (and 2 cats).

Quote
deegee
I retired 11 years ago at age 45 and about a year later I joined an early retirement forum. The subject of kids arises from time to time, and it can sometimes become contentious. There is, however, a significant share of early retirees who have no kids. Personally, I don't know how anyone who has kids can retire early, but that's just me. I know I would never, ever have been able to retire early if I had kids.

What is the age of "early retirement?" This question arises there from time to time, too. There are various degrees, IMHO. Before age 65 is one degree, because that is Medicare age. Before age 62 is another, because that is the earliest one can collect Social Security. Before age 59.5 is still another, because that is when someone can withdraw from an IRA (although there are exceptions to that rule). Still another is before age 55 because someone who leaves an employer at 55 can begin taking withdrawals from his 401k.

With the Affordable Care Act's insurance exchanges introduced in 2014, individual health insurance is a much lesser obstacle to retiring than before. I have surely discovered that after I retired in late 2008.

This is terrific deegee! Congrats. Most people in the forums I visit are planning to retire but aren't there yet. I've also read lots of twenty somethings writing about retiring by the time they are 30 and I'm thinking, that means saving around 60 years worth of money. Better not have kids!

It is just silly when a conversation gets contentious about the personal choice of having kids. People die before they can enjoy retirement. And most people in those kinds of forums are the types who will end up shaving a few years or more off the time they work even if they don't retire especially early.

Even retiring at the standard 65 or 67 is light years better than having to work a crummy retail job out of necessity at 70 or older. It isn't the same if the work is voluntary.
I'd guess for the FIRE movement the likely early retirement age is any time prior to age 65, but as you've pointed out there are many definitions.

Quote
khan
I retired at 54 with a payed for house and car (and 2 cats).

That's a solid retirement khan. Hopefully the kitties have also adjusted.

Quote
yurble
I think you can retire early with kids - if you earn above average and you are thrifty. After daycare and diapers, so much of childhood costs, aside from the enormous quantities of food they consume as teens, is discretionary spending. (College is maybe the one difficult semi-mandatory expense.) The same is true for many adult expenses; very few of them are not subject to flexibility. If you live your whole life like you make 30k, but actually make 100k, you can retire early.

I agree yurble. So many people convince themselves that everything their kid desires is a necessity. Most stuff for kids (and adults) can be purchased second hand and there is public school then public college. I've known more than a few kids who have been told by their parents that they are going to go without extras but will have college paid.

Quote
yurble
I think you can retire early with kids - if you earn above average and you are thrifty. After daycare and diapers, so much of childhood costs, aside from the enormous quantities of food they consume as teens, is discretionary spending. (College is maybe the one difficult semi-mandatory expense.) The same is true for many adult expenses; very few of them are not subject to flexibility. If you live your whole life like you make 30k, but actually make 100k, you can retire early.

Honestly, how many parents do that? Most of them are fucking awful at money management and will do the precise opposite: live like they make 100K when they only make 30K, max out craptons of credit cards, wreck their credit, and then wonder why they're so poor all the time. If most parents were savvy about finances, they likely wouldn't be parents because they'd realize what a massive expense kids are.

Having kids either makes or keeps a lot of people poor because they don't know how to adjust their spending habits to fit their new life. That being said, it's certainly not impossible to retire early with kids. It's just highly unlikely.

Also, the guy who wrote this is living in an insanely expensive metropolitan area, and he's shocked that it costs a fucking fortune to live there, raise a kid and send them to private school? Why didn't they move somewhere more affordable so their money could last longer? Surely they've lived in a city long enough to figure out that everything is more expensive in urban areas. And if he's considering moving the family to Hawaii as a more affordable alternative, it doesn't sound like they're hurting as much as they imply.

Quote
Cambion

Quote
yurble
I think you can retire early with kids - if you earn above average and you are thrifty. After daycare and diapers, so much of childhood costs, aside from the enormous quantities of food they consume as teens, is discretionary spending. (College is maybe the one difficult semi-mandatory expense.) The same is true for many adult expenses; very few of them are not subject to flexibility. If you live your whole life like you make 30k, but actually make 100k, you can retire early.

Honestly, how many parents do that? Most of them are fucking awful at money management and will do the precise opposite: live like they make 100K when they only make 30K, max out craptons of credit cards, wreck their credit, and then wonder why they're so poor all the time. If most parents were savvy about finances, they likely wouldn't be parents because they'd realize what a massive expense kids are.

Not most people, for sure. And that lack of thrift applies to people without kids as well as people with them, although breeders are probably the worst for spending beyond their means. I fully admit my parents are a lot more thrifty than I am, and probably lived on about 50% of their income. I, on the other hand, live on about 70-80% of my income, because I have some indulgences as well as some thrift.

Quote
yurble

Not most people, for sure. And that lack of thrift applies to people without kids as well as people with them, although breeders are probably the worst for spending beyond their means. I fully admit my parents are a lot more thrifty than I am, and probably lived on about 50% of their income. I, on the other hand, live on about 70-80% of my income, because I have some indulgences as well as some thrift.

I save about $400 per month if you calculate, but as I am on Disability I will never 'retire' as I was diagnosed unable to work with my triple whammy of mental problems.

+++++++++++++

Passive Aggressive
Master Of Anti-brat
Excuses!