posted in: Retirement Planning
When it comes to working toward financial security, you may face a dilemma - getting all of the different pieces of your puzzle to fit within the resources you have available.
Many families face the financial issues of:
- Saving for their own retirement
- Funding a child’s education
- Helping to care for or financially support an elderly relative
This is commonly referred to as The Triple Squeeze, and few people have the resources to do it all at once.
If you have a budding scholar in your household, you might think that addressing education funding needs first makes sense since that will be the most immediate need.
Certainly, funding a child’s future education needs is important, but it is vital to pay yourself first.
Your retirement plan should take priority over funding your children’s college education. There are many methods available to pay for or reduce the cost of college: community colleges, less expensive schools, scholarships, college work-study programs, choosing colleges within commuting distance, employer tuition assistance, joining the military. The list goes on. However, there is no such thing as a retirement loan.
Don’t short-change your retirement for your children’s college education. If you’re making good strides towards your retirement goals, an education savings account might help reduce those frightening freshman tuition bills. If your retirement plan isn’t making the grade, however, now is the time to get it on track.
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