2nd Generation FIRE

015 | Root Of Good | 2nd Generation FIRE And College

Let's talk about 2nd Generation FI. What changes when you are raising kids after hitting FI yourself or on the path to FI? How do we do college smartly?

In Today’s Podcast we cover:

  • Our guest: Justin from Root of Good
  • Justin had access to 401k and the 457 retirement plans
  • 457 plan is an extremely valuable took for early retirement as there is no 10% early withdrawal penalty
  • Justin’s early retirement journey: Retirement at 33
  • Saved over 60% of his income to help retire early
  • Justin has a wife and 3 kids and was still able to retire early
  • What does a day in the life look like for Justin and the Root of Good family?
  • “Optimal spouse selection” is important on the path to early retirement. You both need to align and be compatible with the savings mindset
  • Being early retired gives you the flexibility to spend your time as you choose and live like a billionaire from a prior era
  • Justin followed the Early Retirement Forums to model the behavior as he was learning about the path to financial independence
  • Does it really cost $300,000 to raise a child?
  • They spend $29,000 to $34,000 per year including luxurious vacations
  • Quote of the day: “If you want to be average, it’s going to cost 300 grand”
  • How they save money on cruises for the family: Go in the off season, look for deals online and book through a shopping portal like Ebates Full Disclosure: We earn a commission if you click this link at no additional cost to you. , don’t book excursions through the cruise line
  • How does early retirement impact your children?
  • Great lesson to teach your kids: I worked really hard for 10 years, saved money, and now can enjoy life for the next 50
  • For people who save money, it isn’t a stressor, it’s a tool to live a better life
  • You have so much extra time to spend with your children when you are early retired
  • Significant tax savings from having children
  • 2nd Generation FIRE: How to pass this concept on to our children and to teach them to get started even before we did
  • Planning for children’s college while early retired
  • How to get college credit while still in high school (AP classes, classes from local university, etc.)
  • Once you get to college, how do you pay for it?
  • How to hack the FAFSA: they don’t look at retirement savings or home equity for calculation
  • Don’t pay sticker price for college! Financial aid and scholarships are plentiful
  • Some elite schools offer full scholarships to “lower income” people of which early retirees may qualify
  • Will college still be relevant in 10 years and how will you pay for it?
  • The Hot Seat Questions
  • Justin’s favorite blog: Millennial Revolution
  • How Brad uses ToDoIst to put everything in his life on autopilot

Listen to Brad and Jonathan's thoughts about this episode here.

Links from the show:

15-2nd Generation FIRE

Your Financial Resilience Toolkit

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3 thoughts on “015 | Root Of Good | 2nd Generation FIRE And College”

  1. Hi Justin. Loved this episode especially after hearing you’re from Raleigh as well. We moved down here from Pennsylvania cold weather 2 years ago and just love Raleigh-the outdoor activities and the beautiful weather. If you know of any Raleigh meet up groups for financial like-minded individuals, let us know.

  2. Ha ha, hey Donna! I know this is 8 months later, but glad that we ended up bumping to each other here in Raleigh (or at CampFI, more specifically 🙂 ).

  3. Just listened to this episode and wanted to add a bit about college financial aid coming from someone who has a college sophomore. State school and some others only require the FAFSA, which as Justin mentioned does not request information about retirement savings or home value. As he alluded to, many private schools require filling out the CSS form, which does request information about total assets such as retirement portfolio and real estate holdings, including providing data about what the current value of real estate holdings are.

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