Hi all,
I've been into FIRE for the last couple of years. VTI, Jim Collins, fear debt like the devil, live humble, etc. Love FIRE.
I have a dear, dear friend I'm worried about. She just told me her 13 y/o child got into a private Catholic school that will cost… $13000 per year.
That's roughly $78k from when he's 13-18 y/o.
Here's the details:
1. She's 45 y/o and single
2. 3 kids – 13, 11, and 2 y/o.
– The baby with a separate father. They're in a custodial war that has already cost her $30k this past year.
3. Job – massage therapist making maybe $60-70k per year.
4. Home – Owns a house that her father helps her with the mortgage. House value 500-600k.
5. Student loan debt – I think $60k
6. Emergency/911 fund – Prob none
7. Retirement savings – none at 45 y/o.
8. Financial literacy – Never taught about a Roth IRA, dollar cost averaging into simple index funds, compound interest, FIRE, 2nd generation FIRE, etc.
I've tried and tried for 8+ months to explain #7 above. Including opening/funding a Roth IRA before April 15 so she doesn't miss ONE MORE YEAR of compound interest growth into VTI.
She told me this morning:
a. Her oldest son at 13 got accepted into private Catholic school
b. Cost – $13000 – split b/w her and her Ex
c. He also has 2 other sons. So on any given night…. the Ex has 4 boys there. No idea how much he makes.
d. She said her and her Ex are going to take on 2nd jobs to cover the new, extra debt.
e. She said school/debt will give her son great “OPPORTUNITIES”. I dont know who has confirmed these “opportunities” verus the “opportunity cost”. What the “opportunities” are… compared to taking on more debt versus her starting a Roth IRA (and custodial accounts for the 3 boys) and adding to it annually over 30 years.
I'm deeply worried for her. The FIRE community is a bunch of BAD ASS REBELS that don't go with the status quo.
So I'm curious, is this a good idea for her son? For her?
Thank you!!! 🤘🤘🤘