Optimal Finance Daily - Financial Independence and Money Advice 3405: [Part 2] The Greatest Risk To My Retirement Goal by Craig Stephens of Retire Before Dad on Securing Your Future
Dec 30, 2025
A financial planner dives into the daunting costs of college for his three kids, forecasting a staggering $454,000 needed by 2030. He explains the delicate balance between saving for education and ensuring a secure retirement, emphasizing how fluctuating variables can impact projections dramatically. Amidst this financial juggling act, a surprise announcement of a third child adds to the complexity. The discussion also touches on the ROI of college in the face of rising tuition and stagnant wages, encouraging a realistic perspective on major financial decisions.
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Early 529 Starts And Current Balance
- Craig Stephens started his son's 529 the month they returned from the hospital and opened one for his daughter soon after his blog began.
- Their combined 529 balance is about $19,000, roughly one year of in-state tuition and expenses.
Invest Aggressively Early In 529s
- Contribute consistently and keep funds aggressively invested in stocks until five to six years before college starts.
- Use index stock funds and consider state 529 tax benefits when choosing a plan.
Long-Term College Cost Uncertainty
- Estimating college costs 15 years out is imprecise and small changes to assumptions alter totals by tens of thousands.
- Stephens modeled costs and concluded four years for both kids could total roughly $394k–$454k depending on inflation assumptions.