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Saving for School Over Retirement | Series 9.9
Episode 910th October 2022 • Enjoy More 30s: Family Finance • Joseph P. Okaly
00:00:00 00:04:36

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Shownotes

Why do flight attendants say to put your oxygen mask on first, before helping others?

  • Instead of utilizing the ample college loan opportunities, we can instead try and pay for college as much as possible out of our own pockets. (01:42)
  • If we spend $250,000 today that we can't afford on their education, then 10 years later, when we go to retire, that would be around $500,000 less that we would have to work with and supporting our own selves financially. (02:14)
  • As you can't borrow for retirement, having your children borrow for what is possible to borrow for in college is in effect putting your mask on first. (02:54)

Quote for the episode: "But now using the 4% withdrawal rate rule of thumb that $500,000 you kept will now be $20,000 a year every year coming out to you and supporting your own post retirement goals." (03:16)

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Transcripts

Voiceover Audio:

Welcome to the Enjoy More 30s Family Finance

Voiceover Audio:

podcast. The only podcast dedicated to making life more

Voiceover Audio:

enjoyable for young families, by hitting on the financial topics

Voiceover Audio:

that tend to weigh on us, stress us out, and distract our focus

Voiceover Audio:

from simply enjoying life.

Joseph Okaly:

Hello, and welcome to the Enjoy More 30s Family

Joseph Okaly:

Finance podcast. For all those people out there trying to avoid

Joseph Okaly:

being financially secure, well, we have our series for you 10

Joseph Okaly:

Ways To Not Be a Millionaire. Now if you actually do want to

Joseph Okaly:

be a millionaire, not to worry. This series isn't just for those

Joseph Okaly:

people who are looking for financial ruin. If you avoid

Joseph Okaly:

doing these 10 things then you could very well be on your way

Joseph Okaly:

to millionaire-hood as well. Each and every week, I'll share

Joseph Okaly:

a quick step in this how to not be a millionaire process, so you

Joseph Okaly:

know what to do or hopefully what to avoid. As always, before

Joseph Okaly:

I begin, please share and like, please leave reviews. I'd love

Joseph Okaly:

to reach and help as many young families out there just like

Joseph Okaly:

you.

Joseph Okaly:

Today's great tip on how to not be a millionaire is Saving For

Joseph Okaly:

School Over Retirement. Ah college the next step forward

Joseph Okaly:

towards a lovely life for our children at anywhere from $25 to

Joseph Okaly:

$65,000 a year, at least in today's dollars, all they need

Joseph Okaly:

is just a quick $100 to $250,000 well, per each child you decide

Joseph Okaly:

to have, of course, and they'll be well on their way to success.

Joseph Okaly:

This provides a great opportunity for those who do not

Joseph Okaly:

want to be a millionaire. Instead of utilizing the ample

Joseph Okaly:

college loan opportunities, we can instead try and pay for

Joseph Okaly:

college as much as possible out of our own pockets. This can

Joseph Okaly:

provide an opportunity to significantly hamper ourselves

Joseph Okaly:

financially, providing less overall in the way of resources

Joseph Okaly:

for our own retirement, where of course there is absolutely no

Joseph Okaly:

such thing as a retirement loan to get us through assuming a 7%

Joseph Okaly:

growth rate. If we spend $250,000 today that we can't

Joseph Okaly:

afford on their education, then 10 years later, when we go to

Joseph Okaly:

retire, that would be around $500,000 less that we would have

Joseph Okaly:

to work with and supporting our own selves financially. A great

Joseph Okaly:

success for those not wanting to be millionaires. If however, you

Joseph Okaly:

want to do the exact opposite of that, and instead follow what

Joseph Okaly:

you have heard on absolutely every airline flight you've ever

Joseph Okaly:

taken; 'Putting your mask on first before helping the person

Joseph Okaly:

next to you', then you should likely reconsider this entire

Joseph Okaly:

approach I just went through. As you can't borrow for retirement,

Joseph Okaly:

having your children borrow for what is possible to borrow for

Joseph Okaly:

in college is in effect putting your mask on first. Can you

Joseph Okaly:

still help them with the amount that won't throw your retirement

Joseph Okaly:

into a nosedive? Of course. Can you still help them down the

Joseph Okaly:

road with payments if you can afford to? Sure why not. But now

Joseph Okaly:

using the 4% withdrawal rate rule of thumb that $500,000 you

Joseph Okaly:

kept will now be $20,000 a year every year coming out to you and

Joseph Okaly:

supporting your own post retirement goals. Overall, I

Joseph Okaly:

think it is more than clear. Saving for school over

Joseph Okaly:

retirement is a fantastic way to not be a millionaire.

Joseph Okaly:

Thanks for tuning in today and join us for next week's episode

Joseph Okaly:

on how to not be a millionaire, Living For Lifestyle. As always,

Joseph Okaly:

please remember to review and share for others. And if you

Joseph Okaly:

need any help, don't hesitate in reaching out. I probably have

Joseph Okaly:

helped someone just like you. Until next week. Thanks for

Joseph Okaly:

joining me today and I look forward to connecting with you

Joseph Okaly:

again soon.

Voiceover Audio:

The conversations on this show are

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Joe's opinions and provided for general information purposes

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only. They do not constitute accounting, legal, tax, or other

Voiceover Audio:

professional advice for your specific situation. You should

Voiceover Audio:

always seek appropriate advice from a financial advisor,

Voiceover Audio:

accountant, lawyer or other professional before acting upon

Voiceover Audio:

any content or information found here first. Joe is affiliated

Voiceover Audio:

with New Horizons Wealth Management LLC, a branch office

Voiceover Audio:

of TFS Securities, Inc., and TFS Advisory Services an SEC

Voiceover Audio:

Registered Investment Advisor, Member FINRA/SIPC.

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