How do I plan FIRE corpus with child education goals?

You want to retire by 45 — but your child’s education will peak at 48.
Does that mean FIRE is off the table? Not if you separate your goals the right way.

TL;DR / Quick Summary

Treat your child’s education as a separate goal, not part of your core FIRE corpus. Use goal-based investing to fund it, and let your retirement portfolio stay untouched.

Real Problem

Most FIRE calculators assume a fixed monthly expense — but ignore large future goals like child education.
This leads to underestimating the corpus.

If your child’s college costs ₹30–50 lakh and you haven’t planned for it separately, you’ll either:

• Delay your FIRE

• Or withdraw heavily from your corpus and risk early burnout

Both are avoidable with the right system.

Step-by-Step Solution

1. Separate FIRE and Life Goals

• FIRE Corpus = income-generating assets to replace monthly expenses

• Child education = time-bound goal with a known future cost

2. Use Goal-Based Investing for Education

• Estimate education cost (e.g., ₹50L in 15 years = ₹20–25L in today’s terms)

• Invest in a separate child education portfolio using mutual funds or debt + equity mix

• Use tools like the Goal Tracker inside FIRE Life OS

3. Back-Calculate Your FIRE Date

• If you can fund education separately, you can FIRE earlier

• If not, extend your working years or increase savings rate to meet both goals

Actionable Tips or Mistakes to Avoid

• Don’t mix FIRE and child goals in one corpus — it creates confusion and false clarity

• Avoid education insurance plans — low returns, high commissions

• Start early — SIPs of ₹10–15K/month can build a ₹50L education fund in 12–15 years

• Prioritize equity for long-term goals, use debt only for safety closer to the goal year

Real-Life Example

Arvind, 34, wanted to FIRE by 45 and also fund his daughter’s MBA.

He built two portfolios:

• FIRE Corpus Target: ₹4.5 Cr

• Education Goal: ₹50L (using SIP in Flexicap + Index Funds)
  Result: He stayed on track for both — without compromising lifestyle or timelines.

Explore this Paisa360 Product: 🔥 FIRE Life OS

Need help tracking FIRE and child goals together — with full clarity?
Try FIRE Life OS — a step-by-step system to build your ₹10 Cr FIRE plan with real-life goals included.

FAQs

Q1. Should child education be part of my FIRE corpus?
No. It should be a separate goal with its own investment plan.

Q2. How much should I save for my child’s higher education?
Depends on the course and location — but target ₹30–50L for Indian or ₹75L+ for abroad.

Q3. Can I use mutual funds for education goals?
Yes — Flexicap, Index Funds, and hybrid funds are ideal for long-term child goals.

Q4. What if I can’t save enough for both FIRE and education?
Prioritize FIRE for basic needs, then adjust timelines or scale of education spending.

Q5. How do I manage timelines if education comes after I FIRE?
Plan the education portfolio to mature before that year — and keep it liquid.

Q6. Can FIRE Life OS help with multi-goal planning?
Yes. It’s designed for this exact need — FIRE corpus, child planning, insurance, and more.

Q7. Should I take an education loan instead of saving?
Loan is a fallback, not a plan. Try to save 60–70% and use loans only if needed.

FIRE isn’t selfish. It’s strategic. With the right system, you can give your child a great future — and still claim your own freedom.