[ry0ohki]

1) You don't need to pay your kids college tuition

2) Without a mortgage or debt, even 25k goes a very long way. Add up all of your non-housing bills, it shouldn't come anywhere close to 25k, I just did a sample budget and it still leaves 500 in savings per month.

[gaadd33]

1) So shoulder your kids with massive debt or hope the educational system has changed enough that college degrees aren't required for everything and things are affordable. Nice.

2) Assuming a low cost of living state, and you live frugally for just yourself, I totally agree. I don't think that anyone would say raising a family on that much is easy in any part of the country. (I'm not saying its impossible, just not easy, probably to the point where you would say screw it and go back to work.)

[ry0ohki]

1) I paid for my own college and know others as well. I also know many people whose parents paid for their college. Guess who earns more out of this admittedly small sample? When you have to shoulder your own education you make many more money-making decisions, so that poetry degree from $200k school doesn't look so hot.

2) It's not that frugal, that's my point, here's the budget I put together, which still has luxuries like cable tv, smart phones, and $250 a month for going out. https://www.budgetsimple.com/budget/DKwEDsxt

Assumptions- You own your house outright, you own a car outright. There are other costs like property taxes and car repairs, but with $500 savings per month, those should be easily covered in a year.

EDIT- It's also worth noting, we're talking about income solely from dividends on $800k. Once your kids are going to college if you want to help them out, you have 800k (plus the $500 in savings per month to help them.)