FI in 2020: New Year, New Beginnings (FI in 5 years or less!?)

It's been a while.  Once school and activities with the kids happened ... there wasn't much time left to keep up with the blog.  Then the holidays happened.

It's definitely been a busy end of 2019.  We took our first big step towards FIRE (financial independence retire early) / becoming nomads / moving to Spain.  We listed our house in mid-December to sell, and (if all goes well) it "sold" day 1 / showing 1.  Things should be finalized soon, and we should be moved out to a temporary apt in the next few weeks or less.

Moving / Gearing up for Spain

On the one hand it is definitely sad to leave our very unique home behind ... we designed the home with an amazing architect - Brett Zamore Design (and great builder / family owned business - Mealer Homes) ... and our kids spent most or some of their early childhood in this home (starting age 3 and 1 ... up to age almost 9 and 7)... But on the other hand, we only planned to stay here about 5 years and eventually move to a better climate / place with seasons like CO (and CO turned into Spain more recently).

So it is on to new beginnings and new adventures ...

Throw back photo of the kids on our front porch (I believe their first Thanksgiving at the house).

Our last Thanksgiving at the house (2019).

Our last Thanksgiving at the house (2019).

Backyard with Brooklyn.

So is it possible to achieve FI (financial independence) in 5 years or less?

As we mentioned in our first post, it took us about 2 years (2013 - 2015) to pay off debt and trim down our expenses / budget.  Starting in February 2015 we started investing and saving for FIRE.  Here we are a little less than 5 years later, and we hit our FIRE number.  And now we continue our plan to move to Spain.

So what's next?

Our next big step will be preparing for the Non-lucrative Visas (which selling our home was a part of that).  This will be a big (and detailed) undertaking that I will try to share through our blog.

Some of our "smaller" steps have involved deciding what we need for Spain.  We tried to cut back on "things" for Christmas, but some of the things we and the kids received related to our travels.

All four of us received LARQ bottles that were researched by Erik.  (Even the kids were very excited about their LARQ bottles!).  Water purifying bottle with great design I might add ...!

The kids also received their Tortuga bags (equally excited about those ... and we've talked about our Tortuga bags before), and I got them some Atlético de Madrid futbol jerseys and key chains for their bags.  I definitely think Erik won the gift ideas between us though because he got the kids personalized travel journals and old school compasses.

He found all four of us travel towels by Matador (you can see them hooked right on the bigger Tortuga bags), and even our neighbor got in the spirit of our big move (despite not wanting us to go) ... she got the kids Frozen characters for their bags (they will probably add more - like a monkey from my parents!), and she also got us and the kids books related to Spain.

These are just a few gifts / purchases related to our upcoming travels.  We will definitely provide more details and share more soon.  What is your favorite travel gear (we plan to pack as easy and light as possible!)?

So that is a very brief summary of the happenings around here.  We are excited to share our journey to taking flight to Spain in 2020.

What plans do you have in 2020?  How do your finances fit into those plans in 2020?  Or travel?  Will you take flight with us?

-Tara

 

The Stock Market This Century: Would The 4% Rule Be Safe?

As you know by now, I’m always running our numbers in planning for our (very quickly approaching) ER (early retirement).  While I was doing some research on historic market returns, I came across this great website that lists the yearly returns of the stock market from 1928 to current day.  

While scrolling through the numbers, I thought it would be a great idea to see how well a person would have done if they had retired at the beginning of this century and applied the 4% rule.  

New York City's Financial District is home to the New York Stock Exchange

I did this for two reasons: 

One: After looking at the data, it doesn’t take a rocket scientist to see that retiring in the year 2000 was really bad timing, so therefore a good way to test the 4% rule.

Two: I wanted to compare a portfolio withdrawing 4% no matter what the market is doing with one that will apply safety margins via a smaller withdrawal rate and / or tapping into a cash cushion (this would be similar to our future strategy). 

Lets take a look at the results.  

The above table illustrates what a 4% withdrawal rate would look like from 2000 - Present.  

As shown, after retiring right when the dot com bubble was bursting, and Enron was imploding, along with September 11th, two major wars (Afghanistan and Iraq), and with the housing bubble looming, this person would have an overall loss of ($108,443.40) to their portfolio.  This certainly isn’t a good outcome, but this is also a scenario in which a person literally retired at one of the worst times in history and with that said, it's not a terrible outcome (they still have almost $900k invested!)  They have clearly been able to weather the storm, and my guess would be over the next 20 years their account value will go up even while withdrawing their 4%.  

Also note, this person didn’t apply any safety margins during this time frame, which IMO (in my opinion) is a reckless way to go about early retirement.  But, to each their own.

This table illustrates what would be much closer to the way our withdrawal strategy would have worked had we retired in the year 2000.  In this scenario the person / family lives on 3.5% of their investments in the good years (Safety Margin 1: 3.5% withdrawal), and they lowered that down to 2.5% in the bad years by tapping into their cash cushion as needed (Safety Margin 2: 2.5% withdrawal).  

Also remember, in this plan, each year’s withdrawal rate is based on the previous year's market performance.  For example, even though in the year 2000 the market was down over 10%, they still withdrew their 3.5% because in 1999, the market was up 19.53%. 

As we can see (and hopefully this is obvious) the results in table 2 are better, but still not really great.  After dealing with such volatility, I expect a better return than this, and again my guess would be the next 20 years are set to provide that.

Note, table 2 isn’t even a true representation of our plan because it does not factor in any extra income coming in, which we absolutely intend to have in some shape or form at some point.  This income would be used to lower our withdrawal rate even more (potentially to zero for at least some of the time).

What this exercise shows us is that despite the historic bull run that the market has been on the last 10 years, this century overall has been extremely volatile.  While we expect and even embrace the volatility that the market brings, this leaves me feeling (dare I say) optimistic with what the next 20 years has in store for market returns ...?!

Also, it is important to keep in mind that it is very rare (though possible) to retire at a historically bad time like this post illustrates.  For example, if the person from the first table would have decided to work just one more year and retired in 2001, their account balance in 2019 would have been positive by over $38k.  Work a few more years and retire in let’s say 2003 ... and withdrawal their 4% as shown in table 1, their current account balance in 2019 would be over $1.7 million!  Had they adopted the withdrawal strategy shown in table 2 (and retired in 2003), their account balance in 2019 would be over $2 million.

Key Takeaways

• Stay flexible in retirement (and really in life in general) because there will be stretches of years where returns aren’t great. 
• Plan to have safety margins, and implement them as needed. 
• Don’t be scared to earn some income in ER (early retirement).  This doesn’t mean your ER has failed, this just means you are a relatively young, healthy, educated, and productive human being (pat yourself on the back).

Lastly, I leave you with a quote from Mr. Money Mustache:

“Standard retirement advice is based on protecting people from any form of hardship or change, which is completely counterproductive.  In the right quantity, these are the backbone of a good life and the fuel for personal growth.  Without them, you will melt into a whining puddle in front of a television that endlessly blares Fox News.” - MMM

What do you think?  What withdrawal rate feels safe to you?  Would you apply safety margins?  What might yours be?

-Erik

FI With Kids: Fun Friday Food

Food is always a big topic in the FI (financial independence) community as we mentioned in our blog last week (How To Feed A Family Of Four On $75 Per Week).

One topic that does come up in FI social media groups is ... lunch!  How do you save on lunch (adults and kids)?  What do you pack for lunch?  How much do you spend on buying lunch?  And so on ...

So today I bring you ...

Fun Friday Food

Our daughter's Back to School lunch from last year.  Also featured in the photo - reusable bag (found on Amazon - Bumkins).

When our son entered Kindergarten (he's now in 3rd Grade) I started doing Fun Friday Lunch Art for him.  And now that both of our kids are in elementary school, I do Fun Friday Lunch Art for both of them each week.  It is an easy goal to stick with - entertaining for the kids, and nearly free (with the exception of art supplies, but of course most of us have those around the house).  (Side Note: I am an art teacher.  You can read more about how we live on a teacher's salary (and save the higher salary) here).

Not feeling artsy?  Of course you can write simple notes or jokes (my kids love when I incorporate jokes!).

But what about the food?  Most of the food comes from our regular grocery budget - How To Feed A Family Of Four On $75 Per Week.  If I buy anything special, it would come from our extra spending budget.

Today I am not going to talk to you about their normal lunches, but I am going to talk to you about their special "holiday" lunches.

On special holidays (or near special holidays), I sometimes try to surprise them with an extra fun lunch (maybe Back to School, Halloween, Dia de los Muertos, Christmas, Valentine's, and Easter (Easter is fun because I put ALL of their food in eggs!)).  It really doesn't take that much more effort than their normal school lunch, and the cost is minimal and would come from our extra spending budget (I could definitely do it for $10 or less for two kids if I wanted to).

For example ... it might look like:

Back to School Lunch

Christmas Lunch - Our Son

Christmas Lunch - Our Daughter

Valentine's Day Lunch - Our Daughter

Valentine's Day Cookie - My Sweet Obsession Cookies (Support local vendors and artists!)

Valentine's Day Lunch - Our Son

-Instead of using their normal Bento Box in their lunch kit for special holiday lunches, I would remove that to allow for more room.  (I bought their Bento Boxes from Pottery Barn Kids their Kindergarten year.  They have lasted since then (now 3rd Grade and 1st Grade).  Their lunch boxes are also from Pottery Barn Kids which last 2 years or more.)

-I sometimes replace the Bento Box with crinkle paper (paper not plastic) that goes along with the holiday.  I've found this at the Dollar Store.  I like to avoid the Dollar Store as much as possible, but some things are okay like paper products.  At Christmas, I've put in "snow."  You can find fake fluffy snow at craft stores.  It's cheap, and the kids love it.

-I've found holiday baggies at Target to use to hold some food items.

-Sometimes I find little trinkets to go along with the holiday (like spiders at Halloween).  I often find these at Target.

-Food?  I usually use the food they normally eat for lunch, but then I might buy one or two extra treats they don't get (this would come from extra spending).  And I sometimes do extra special treats like the one featured in the Valentine's Day lunches above.  I've used a local cookie artist / vendor a few times for holidays and gifts.  Her cookies (My Sweet Obsession Cookies) are adorable, tasty, and affordable, and I prefer to support local artists / artists in general versus big box stores (when possible).

-Other ideas?  Cookie cutter shapes go a long way!

I've thought about doing my own Etsy shop or something similar selling personalized lunch art ... and maybe even pre-packed holiday lunch items (not food items), but that is not something I have time for right now.  Maybe in early retirement as a side gig?

So there you have it ... what do you pack for lunch?  Do you ...or would you consider packing notes / art .. or going above and beyond at the holidays?  What other ideas do you have for lunches?

-Tara

How To Feed A Family Of Four On $75 Per Week

Before we get to our food post, I am going to provide a quick summary on FIRE (Financial Independence Retire Early).  As we get closer to FIRE, I've had some people ask me ... well, what about work?  What about a job?  (You can also see our recent post here on the What Abouts).  

1) FIRE stands for Financial Independence Retire Early: Once you reach financial independence you are able to retire early if you choose to do so (of course you do not have to stop working!).
2) We plan to stop working full-time, but that does NOT mean we will probably never work (make money) in some way ever again.
3) We plan to try to get Non-Lucrative Visas (NLV), and move to Spain for at least a school year (or more).  If we are able to obtain Non-Lucrative Visas, this means we can't work / take a job from a Spaniard.  But a NLV would allow us to stay for up to a year in Spain (versus an American Passport would only let us stay for 90 days).
4)  How do you achieve FIRE?  Short answer ...

Pay off all of your debt!
Budget, and decrease your spending rate (and increase your savings rate!).
Invest, invest, invest.
Figure out your FI (financial independence) number.
Be prepared, and have back up plans (your safety margins).
Reach your FI number!  Now you can live off your investments (4% or less), and there are other ways you can pull from your retirement early (here and here).
Enjoy FIRE.  Done!

-Tara

How To Feed A Family Of Four On $75 Per Week

The hummus wraps and salad are mentioned below.

One of the numbers that seems to jump out to people when they read our blog and look at our budget is the amount we spend on groceries.  (It is also a fairly common topic amongst the FIRE (financial independence retire early) community).  We try to keep this between $70 - $75 per week or about $300 per month.  What?!  Yep, you heard that correctly.  This includes our food, toiletries, cleaning supplies (hello, baking soda and vinegar!), etc.  

Today we wanted to give you an inside look at what a typical week looks like for us.  

We will also include the meals that we plan to cook (because planning your meals ahead of time is key to sticking with your budget (and a time saver)) AND some of the recipes we use.  (At this point I don’t really use recipes, and I certainly never measure seasonings.  The cooking is more based on feel.  The below recipe ideas are almost impossible to mess up -- really quick and easy to make and adjust to your own tastes).

As of right now, we mainly shop at HEB and Aldi (of course prices vary depending on the market you are in and where you shop).  Both of these places are pretty popular amongst the FI community / local FI community.  Where do you shop?  We've also shopped at Sprouts (which is like a smaller version of Whole Foods) when they've had sales.  And if we lived closer to Trader Joe's (there are some in Houston, but we are in the burbs), we would probably frequent there too (we even noticed when we have visited NYC the prices at Trader Joe's are similar to the prices in Houston which was surprising!).

Note, any eating out (meals, even grabbing ice cream, or Starbucks, etc.) comes from our extra spending budget not our grocery budget.  And I am guessing we "eat out" less than a typical American family because that has not been a priority for us.  It also helps that any eating out is usually because it is a treat not because we weren't prepared / or in a pinch.

The Grocery List

The sample lists above were actual lists we used within the last month.

As you can see we try to shop the sales for our fruits as much as possible.  Another thing to note is that I have my list written according to the store layout.  We start in the produce section.  Then we hit the condiments (Peanut Butter, Salsa, etc.) ... next up, rice, beans, etc.  This helps me stick to my list and gets us in and out of the grocery store as quickly as possible (the less time you’re wandering around in there, the less likely you are to spend on unnecessary items).  

Speaking of the list, it is in my hand EVERY time I am in the store.  It includes obviously the items I am going to buy but also each item's price (an estimate) so that I have a good idea of how much I’m spending before I check out.  My son and I sometimes play a game where I tell him how much the bill is going to be (give or take $1), and my estimate is always right (this blows his mind!)  My list also contains the meals I have planned to cook for the week (which helps me make sure that I’m not forgetting any ingredients).  (Sample of that below).

The Meals

This exact meal isn't mentioned in this post, but basically it is baked tofu, kale, rice, and white sauce / hot sauce!  Yum!

I’m guessing most people who cook at home have some “go to” meals that they make most weeks that are quick / easy, and that everyone in the family likes (depending on the day or mood if you have a 6 and 8 year old).  These are just some of our “go to” meals.  Note, they are all plant-based.  What are your "go to" meals?

Pasta with Garlic & Walnut Sauce and Spinach Salad with Sliced Apple and Garlic & Walnut Sauce

To make the garlic & walnut sauce - blend about 1 cup of walnuts with as much or as little fresh garlic as you want (I usually use 4 - 5 pieces) and ½ - 1 cup of water (depending on the consistency you want the sauce to be).  This stuff is good on just about anything, but we like it over rice, pasta, homemade tortilla chips, and steamed kale.

Burrito Bowl

This is one of the wife’s favorites, and it's also good for kids because they can come and build their own bowl (think Chipotle at home).  For this I usually make a big batch of rice.  Then just set out bowls of beans, garlic sauce (same as above), corn, cilantro, sautéed onion, salsa, hot sauce, homemade tortilla chips, etc.

To make the homemade tortilla chips, preheat oven to 400.  Put some parchment paper on a baking sheets, and cut tortillas into chips or strips ( you can use corn or flour tortillas).  Bake for about 10 minutes.  (Start watching them around 8 or so.)
  

Breakfast Scramble

Onion, garlic, frozen hashbrowns, spinach, leftover beans, and leftover corn in a non-stick skillet.  Top with hot sauce, cilantro, or salsa.  Done!

Hummus Wrap

Fill a tortilla with homemade hummus, sliced cucumber, sautéed onion / garlic, diced tomatoes, spinach, cilantro, beans, etc.

To make the homemade hummus, simply blend 1 - 2 cups of cooked chickpeas with fresh garlic (again I use 4 - 5 pieces), a couple squirts of mustard, lemon juice, and about a ½ cup of water (alter depending on the consistency you want for your hummus). 

“Nachos”

Make tortilla chips (as mentioned above).  Put some homemade hummus in the middle of the plate, and lay chips around hummus.  Then cover chips with the garlic sauce, cilantro, salsa, hot sauce, beans, onion, jalapeno, spinach, etc.

Big Pot of Beans / Rice

What plant-based menu is complete without a recipe for a BIG OL’ POT of rice and beans (plus we are Texans ... we love rice and beans)!?  This is one of my personal favorites, and I typically eat a variation of it at dinner every night.  This is a great meal for leftovers, and it is good to eat by itself (or you can use it as filling to make tacos with).  

Saute onion / garlic in non-stick skillet.  Next add 4 cups of vegetable broth, 1 - 2 cups of water, 1 cup uncooked rice, 3 cups of cooked beans OR lentils, and seasonings of choice (my favorites are smoked paprika, onion powder, and garlic powder).  Bring everything to a boil, and then simmer on medium / low until rice is cooked (and most of the liquid has been absorbed).  

There you have it!  This is just one example of our grocery list / meals in a week.  

What do you think?  How much do you spend on groceries?  What kind of food do you cook?  Do you shop with a grocery list, and plan your meals ahead of time? 

-Erik

FI With Kids: The Arts and Ice Cream (Free!)

We've said it before ... there are ways to cut the costs even with kids.  Yes, you can achieve FI even with kids!  For example ... FI With Kids: Family Memberships (Bonus: Travel Gear!) and FI With Kids: Easy Color Theory Science Experiment.

So how do you keep costs down with kids?  What types of free activities do you enjoy with your family?  Or even free activities for adults?

We live in the Houston area so there is really no shortage of free activities all the time.  We recently participated in two.

Last week we attended the TC Energy's annual Theater District Open House, and this weekend we attended a local small town Labor Day Ice Cream Social in Friendswood.

Labor Day Ice Cream Social

Theater District Open House

The Theater District Open House happens annually in August each year.  Unless you count driving / gas, we spent $0 (same with our Labor Day Ice Cream Social mentioned below!).  I've been once before years ago, but we decided to go with the kids this year.  And I am glad we did!  It is a great opportunity to get a small taste of the performing arts scene (for free!).  They also had unique opportunities (besides performances) such as arts & crafts for the kids, behind the scenes opportunities (checking out wigs), and hands-on participation like drum circles.  We spent a few hours there, and we didn't even get around to everything.

Another bonus?  We didn't have to pay for parking.  Parking in Downtown Houston can be a pain for large events, but they offered complimentary parking in nearby parking garages / lots.

We also lucked out because the weather wasn't great driving in (rain storm) so I am guessing less people attended - therefore we didn't have to deal with ridiculous crowds.

For those that wanted to spend money ... there were some food trucks (we enjoyed the complimentary Saint Arnold's Root Beer).  And for those that did better about planning ahead, you could find deals on performing arts tickets and season passes (I should have thought about this prior because there are a few things that I am interested in attending, but we also were looking to stay within our August extra spending budget).

I would definitely recommend this event to others!

Friendswood's Labor Day Ice Cream Social

Last year we attended the local Labor Day Ice Cream Social (it was a great little free event) so we decided to go again this year.

Free Blue Bell (best ice cream in Texas)?  Yes, please.   Say no more.  (They had vanilla, chocolate, strawberry, mint chocolate chip, and even root beer floats).

They also had other ice cream cookies and treats, water and lemonade, a live band, and outdoor family / kids activities / toys.

They hosted it at the small local historic Perry House Museum (early 1900s).

What activities have you enjoyed lately that were free?

-Tara

Early Retirement: The "What Abouts"

As you go through your journey to reach FI (financial independence), you will inevitably have conversations with family / friends / co-workers who are concerned (some extremely concerned) about the “What Abouts” that could happen (example: What About ... running out of money!?).  (And many are just curious / don't really understand).  We want to go through the Top 5 “What About” questions that we have come across and answer them.  

Let’s dive in!

What About ... the freedom of time in our calendar?  The ability to see public art anywhere in the world?  (Location: Houston's East End).

Top 5 What Abouts 

1) What About: A Job??!  Boredom?

2) What About: Running Out of Money?  What About: When The Stock Market Crashes?  (I'll lump these two together).

3) What About: Health Insurance?

Abroad

United States

4) What About: Being Away From Family / Friends?

5) What About: Education?

What About: A Job

Often times when people hear that we plan to be financially independent and retire early they still ask about our jobs.  What about work?  What do you mean you don't need to work?  Okay, I get it.  The concept is non-traditional and does take some time to sink in, but the beauty of FIRE is you have the financial independence to not rely on full-time work (if that is what you choose to do).

So yes, we plan to move to Spain (at least to try it out for a school year ... maybe more), and no we do not plan to have full-time traditional jobs in our near future (in fact, we plan to apply for Non-Lucrative Visas so that means we can't work even if we wanted to).

So once people get a handle on, okay ... you actually plan to retire early ... well, won't you be bored?  For me (Tara), the strong answer is no.  We are going to focus on our kids and travel (time for naps?  reading?  making art?).  Even if I was bored (unlikely), my answer wouldn't be working full-time again in a traditional sense.

What About: Running Out of Money?

This question is simply a lack of understanding of how our investment strategy works.  We invest in VTSAX which covers the entire US Stock Market.  Historically the data shows that this will net us about a 7% return on investment after adjusting for inflation (10% return without adjusting for inflation).  We only plan to take between 3 - 3.5% from our investments each year to live off of (and we all know the safe withdrawal rate is actually 4%).  Being that we are withdrawing less than the safe withdrawal rate each year, we have a built-in safety margin to our plan.  This is absolutely overkill and extremely conservative, but it helps me sleep better at night.  

Let's look at a spreadsheet to see what $1,000,000 will do over time assuming 7% returns and then withdrawing 3.5% per year over 50 years.  

As you can see, we start with $1,000,000.  We earn a rate of return that has historically proven to be as good an indicator as any as to what to expect our future returns to be, and we have withdrawn 3.5% per year.  After 50 years, our account has grown to over $5,500,000!  If I’m being honest, I think this is actually on the low end of what our account will end up being because we will have part-time income of some sort (eventually) that will lower our withdrawal rates even more during some years (not to mention the possibility of Social Security in our future).  

What About: A Stock Market Crash?

This is a great one because it’s not IF the market will crash but WHEN.  I anticipate at least 3 - 4 more really major stock market crashes in my lifetime (I’m not talking about what happened in the 4^th Qtr of 2018, I’m talking about 2008 level legit crashes).  

This is when you tap into your safety margins, and as we already discussed above, our 3 – 3.5% withdrawal is like having a safety margin already in our plan.  Some other things we will consider when the market crashes, is to pick up extra income through part-time work / side hustles, move to a cheaper part of the country / world, spend less (cheaper vacations, less eating out, etc.).  If we have managed our funds well up to this point, we aren’t going to one day be irresponsible and blow it all down the drain.  

What About: Health Insurance in Spain?

This is one of the most common concerns from US Citizens and rightfully so because a medical emergency in the US could set you back quite a bit if you don’t have the right insurance coverage.  Since we plan to live in Spain our first year in retirement, we aren’t nearly as concerned about this because health care in pretty much every other developed country in the world (other than the US) is affordable!  Go figure.  (And we have to have health insurance to qualify for our Non-Lucrative Visa).  We mention one health insurance option we are considering in this post.

What About: Health Insurance in the US?

We don’t plan to stay in Spain forever (I guess anything is possible though) ... so what about when we come back to the US? 

Keeping in mind that our income will probably be around $40k or less in retirement (and depending on what state we settle in), we will qualify for huge subsidies that allow us to pay $200 per month or less for health insurance in the US.  It’s almost like living on less in FI is a loophole for affordable health insurance (hence the Affordable Care Act).  That said, it is also very likely that one or both of us will eventually pick up some part-time work, and so it’s possible that we end up working for a company that offers health insurance as well.  Justin from Root of Good has a great post on how subsidies cover 88% of health insurance for his family of 5. 

What About: Being Away From Family / Friends?

This one will be tough for everyone involved no doubt, but even though we won’t be able to see our loved ones as often as we do now (the ones that live close by at least), when we do see them we will have the freedom to stay for a month or two or more if we so choose.  Rather than rushing in town for 5-7 days, we can visit and stay 30 - 60 days.  Not to mention that loved ones and friends could come and visit us as well and stay as long as they please.  

Honestly, I think our family / friends will end up kicking us out because they see us too much in FI.

(And another thing to keep in mind is our 5 - 7 Year Window.  We think this is the ideal time to give our children the gift of travel despite the cons, but again as mentioned above ... we will have the flexibility to visit family longer (not tied down to FT jobs)).

What About: Education: K - 12?

For our first year of FIRE (financial independence retire early), we plan to enroll the kids in school in Granada, Spain.  Part of the reason for going to Spain is to immerse them fully in the language and culture and being in school will help with that (yes, we plan to do !00% Spanish immersion for school).

But what about after that?  That is definitely up in the air at this point, but we are not at all concerned about their education.  As we mentioned in this post, we do have some ideas (that may or may not change) for our 5 - 7 year window before our oldest hits high school age.  Our one year in Spain may turn into two years in public school.  We would like to do possibly one year (World School) in NYC, and then we plan to do two years of World School while traveling.

But what about traditional American public school?  Honestly, I (Tara) have so many concerns about traditional public school (at least in the US), that I am not concerned about them possibly missing this time for up to 5 - 7 years (or more?!).  And I am a public school teacher!  (With that said, yes, there are many things we love about their teachers / school).  But I won't go into those concerns in this post.

And what about high school?  That is up in the air, but still on my mind.  I can definitely see staying put in one area as being a possibility.  Will that be the US?  Maybe.  Another country?  Also maybe.

What About: Education College?

One of the greatest perks I believe we will gain from living in different parts of the world during FI is the number of opportunities it will open up for our children's higher education.  For example, if we live in Spain for a year or two and then do some World Schooling in parts of Italy, Germany, and Croatia (for example), then it would not be out of the question for our kids to eventually go to college in one of these countries which would be SIGNIFICANTLY cheaper than going in the US.  Take a look at this article from CNN Money. 

We could make college in the US work as well by applying for scholarships and choosing a school in the state that we reside in.  Being that we more than likely won’t be tied down to a job, if we were currently living in Oregon, and our kids wanted to attend college in Colorado (or wherever), we could simply move to that state in order to get the in-state discount (if a public school).  We wouldn’t want to cramp their style though, so they might make us put a 50 mile radius around the campus of their choice that Mom and Dad can't live in.

But honestly, why would you pay $50,000 - $100,000 plus for a college degree in let’s say Texas, when you could get a degree in Germany for almost nothing?

Am I worried about paying for college?  Not in the least.

To Sum It Up

I’m not trying to sound like emergencies won’t happen in life, but I’m also not going to keep myself up at night worried about what might happen as life goes passing by.  All we (or anyone) can do is have a plan in place so that we can handle the curveballs that life will certainly throw at us over the years.  One thing I know for sure is that I don’t want to wake up one day and realize that I missed seeing the waterfall because I was too scared to look over the edge.  Step out of your comfort zone, hold on tight to something, and go look over the edge!

What do you think?  What are your questions or What Abouts?

-Erik (and some parts by Tara)