It's easy to get carried away. They were probably spending 100 grand a year in Vegas. I'm a big advocate of spending your money. You don't want to go back to the kids for a loan. Not everyone spends, spends, spends their midlife surplus.
Some folks help an adult child buy a first home or bankroll a grandchild's education.
But being too generous here could hurt you later. Make sure you and your spouse have plenty to live on during your retirement years before worrying about financing little Susie's college fund. Some people use their pre-retirement surplus to help figure out what they'll do with most of their time once they stop working. Some people have a real clear idea what they'll be doing when they leave the work force. You Want Now .