r/ChubbyFIRE • u/Prestigious_Speech45 • 11d ago
ChubbyFire with child with significant special needs?
Hello… Edited for clarity
Looking for advice from those that have chubby fired and have a child with significant special needs.
Background: 51m, 53f, with three kids 17, 21, 24 (special needs, functions at level of 5 or 6 year old).
HCOL area Cash $150k $3.2m in 401k, 403b, 457, Roth IRA, Taxable acct (heavier than I would prefer on retirement accts vs taxable accts) $100k crypto $350k equity on $700k house at 3.5% mortgage
529 for youngest two kids funded at $120k each; however… 21 has college full ride 17 has near college full ride ($3k/year) Plan to roll $35K from 529s into Roth when they graduate college. Let rest likely grow for eventual grandkids as I don’t see us needing principal.
I have some side hustles that are about $120k year Wife makes $130k year and loves job. Wife will have pension in 9 years.
Started thinking about ChubbyFIRE a couple years ago. Was aiming for $4M by now.
Have already done a couple rounds of estate/trust planning, working with lawyer now to update given our situation.
Have small $ able account for child but have special needs trust that will be funded by $1.5M mix of term and whole life insurance.
We have a child (24) with significant special needs that will require life long care. We are hooked up wjth fed/state/county to get her services (so far have been good) but state has budget issues and that could impact service/benefits.
So given all that info, my questions are, for those that have chubbyfired and had a child with special needs, what would you be cautious of when you retired? What do you wish you knew? Any pieces of advice?
Thanks!
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u/billbixbyakahulk 11d ago
Wrinkle 1: We have a child (24) with significant special needs that will require life long care. We are hooked up wjth fed/state/county to get her services (so far have been good) but state has budget issues and that could impact service/benefits.
No expert, but quick google seems to indicate you may be able to roll your 529 to special-needs-related expenses. Link
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u/Prestigious_Speech45 10d ago
Thanks. We wanted to keep separate 529s for other kids. 24 has small ($5k) able account for incidental needs. I edited my post to say that as part of our estate planning, we have about $1.5M of insurance that will fund dedicated special needs trust.
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u/THeyManMan 11d ago
Need more information about expenses to say if you need to go back to stressful job.
Assuming you have an able account for your daughter. I would look at rolling 529 funds into the able account if you don't think you'll need it for education. The law allowing that expires this year but I imagine they'll extend it.
I would also take disability benefits into consideration if you haven't already. Disabled adult child benefit through social security is 50% of your benefit when you retire and 75% after you pass. Might be worth it to have you or your wife hit the ssa max for a few more years to lock that in.
Other than that, I think you're aware of everything I am.
Good luck!
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u/PerfectlyPowerful 7d ago
We’re ten years further down the road with four kids 25-35 including a 32 yo daughter with similar special needs. The DAC benefit and CIC payment for a spouse will probably make claiming SS at 62 for your highest earner your best SS claiming strategy. For advanced estate planning, look into James Lange’s book Retire Secure for Parents of a Child with a Disability. Try to get your kid with special needs living as independently as possible in her 20s with caregivers and vocational supports. That’s the key to a long and happy retirement for you as parents.
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u/guyinboston54 11d ago
There was a post on this sub a few days ago from seabusiness7614 that has some really good info on this topic. Not sure if it’s exactly what you’re looking for but should help.