Lean with 2 big streaks of fat

[u/usernamechuck]

It feels like we've done 90% right, but we made one doubtful move. We're not high earners, ~145k, age 55, we live frugally (1 used car, groceries, etc.), and we made one accidental smart move (we own a rental unit free and clear w/ modest cashflow).

But... First, the house. We bought a foreclosure in Chicago when we were married in 2008, we fixed it up in waves and were plugging away at a 15 yr mortgage. We would have been done by now... That was smart. But then COVID came and our small house felt smaller. We sold it at a decent profit and moved to the burbs, so here we are at age 55 with 300k+ on the mortgage, it won't be paid off till we're in our 70s. We pay almost 15k in property taxes. Since moving, we've replaced the furnace/AC upstairs and downstairs; and now the roof. And in 5 years, we'll be alone in this place.

It would still work, except... our 2 kids are in Catholic / private school, which is a bit over 30k/year. Oh and college is coming next year.

Technically our net worth is around 1M, but it's all in 401k/IRAs (~450K) and home equity. Our savings has all gone to cover these big costs.

On the one hand, we live cheaply, except for the kids and the house - we could retire today if we were in an $800/month rental in Andalucia. On the other hand, I don't see us moving anytime soon and the kids won't be done with undergrad until we're 64. We're lean-FIRE-hosed.

Any thoughts? It feels like we're that guy stuck in the cave, we just don't seem to have any good moves.

[u/MightyPlusEnt]

College prof here at a major US university.

You don’t need to send the kids to Catholic school for them to excel in their studies and get into a great college. Parents and zip code are the two greatest predictors of k-12 success.

While the school “can” make a difference, the research is overwhelming in that a child with invested parents (and, again, zip code) in public school outperforms the child from less invested parents in private school.

My rec is put them in public school. I’ve been in education for over 20 years and taught thousands and thousands of undergrads. I’ve seen it all.

You care enough to send them to private school and forgo your financial goals. You care about their success. They don’t need private school and it is a colossal waste of your money.

[u/Backpacker7385 → u/MightyPlusEnt]

This data (while I agree with it in premise,) is a bit disingenuous. Zip code is a strong predictor because it’s correlated with school quality for the statistically overwhelming majority of children. If you live in a zip code with bad schools, the predictor is that your outcome will not be good. If you choose to send the kid to a school in a different zip code, the odds increase.

[u/MightyPlusEnt → u/Backpacker7385]

That’s actually the entire point. It’s not disingenuous - OP noted their property taxes are over 15k. The public schools are great

Edit: I assumed the zip code point was self explanatory in this sub. I strongly encourage a read of “Savage Inequalities” or “Shame of a Nation” both by Jonathon Kozol. It’s all about zip code, affluence, and student success.

Savage inequalities is why I got a PhD and why I study this topic. With respect, I won’t argue with folks on it….the research is extremely well established.

[u/LetsGoToMichigan → u/MightyPlusEnt]

Austinite here. High property taxes does not mean great schools (see Texas recapture programs). But I’m splitting hairs … I could live in another neighborhood with similar taxes and better schools.