This week on WBIR’s Sunday Money a viewer asks, should I save for my daughter’s college or for my retirement? Let’s ask our moneyman, Paul Fain, president of Asset Planning Corporation.
PAUL, WHAT IS THE HIGHER PRIORITY: DO YOU SAVE FOR COLLEGE OR FOR RETIREMENT?
- Save for retirement
- It’s OK not selfish
- Ultimately, thoughtful
BUT DON’T PARENTS WANT WHAT IS BEST FOR THEIR KIDS?
- You want the best for your kids.
- Opportunity to attend college
- Graduate without thousands of dollars in student loan debt
We all have limited resources to use to fund short-term, mid-term and long-term goals.
EDUCATION COSTS HAVE SKYROCKETED BUT RETIREMENT HAS DRAMATICALLY CHANGED AS WELL!
- Pensions are gone
- Social Security’s trust funds are in question
- You’re on the hook for funding your retirement. Who else will fund your retirement if you don’t?
- Do you really want to be a financial burden on your children in their adult lives?
PARENTS CAN STILL HELP THEIR CHILDREN PREPARE FOR COLLEGE…
- Choose a school they can afford
- Take out a reasonable amount of student loan debt
- Explore all options to cut costs, including starting at a community college
- Finding paid internships or part-time jobs
- Apply for scholarships and grants
Remember that students can always borrow money for school — but there are no “retirement loans” available for you.
FAST MARKET FACT: remember that it doesn’t have to be all or nothing. Set aside a portion of income or future bonuses or raises to contribute to a 529 college savings plan.
2019 Top Rated 529 College Savings Plans:
QUESTION FOR OUR MONEYMAN?
Want to learn more about saving for retirement or education funding strategies? Do you have other general questions about financial planning or investing? Send your questions to our Knoxville Certified financial planner Paul Fain or directly to Paul@assetplanningcorp.com!