Post by @yunggeeski

How much does having kids REALLY cost your retirement? We simulated 40 years of investing, compound interest, childcare expenses, college tuition, taxes, and debt to calculate how family size affects long-term wealth. The results are staggering. FINAL NET WEALTH AT AGE 65: 0 Kids: $12,721,228 1 Kid: $9,418,958 2 Kids: $6,739,409 3 Kids: $3,734,584 4 Kids: $1,823,289 5 Kids: $61 10 Kids: -$3,722,062 A difference of over $16 MILLION between having no children and having 10. HOW THE SIMULATION WORKS: We modeled the same married couple from September 1986 to September 2026, starting at age 25 and retiring at 65. Both parents work full-time, with combined annual income ranging from $120,640 to $149,344 based on age-specific earnings assumptions. The first child arrives at age 26, with additional children every two years. Annual household living expenses start at $60,000, excluding child-related costs. CHILD-REARING COSTS: Ages 0–4: $22,184/year Ages 5–12: $14,000/year Ages 13–17: $18,000/year College: $15,495/year per child for four years. Shared living-expense discounts and additional housing costs are included for larger families. TAXES: Modeled 2026 federal income tax brackets, child tax credits, childcare credits, education credits, payroll taxes, and an assumed 4% state/local tax rate. INVESTING: Monthly historical S&P 500 returns using Robert Shiller's historical data and actual SPY adjusted prices. Returns are adjusted for CPI inflation, with missing observations estimated. BORROWING: Positive cash flow is invested. Deficits reduce accumulated wealth, then create debt at an assumed 8% nominal annual interest rate. Future surpluses repay debt before investing resumes. All results are expressed in inflation-adjusted dollars. September 2026 data is provisional. IMPORTANT: This is a hypothetical financial simulation, not a prediction. It assumes both parents remain employed and can borrow indefinitely at the modeled rate. It measures financial opportunity cost, not the personal value of having children. How many kids would you want, knowing these assumptions? #RetirementPlanning #CostOfRaisingKids #Investing #PersonalFinance #CompoundInterest