With the cost of higher education rising each year, more families are worrying about how to save for retirement and help their children pay for college. The world of student loans has grown immensely in the past decade, with a large percentage of new graduates already saddled with thousands of dollars in debt before they’ve even had a chance to land a job.
Families are pulling money out of 401K plans or taking equity out of their home to help pay college tuitions, leaving them with the burden of worrying about their financial future when they’re too old to work. With the right financial advisor in Colusa families can put into action a plan for retirement and college savings so that both the children and the parents will have a prosperous future.
Choose Retirement Over College
Choosing to save for retirement over helping your child pay for college seems like a selfish task for some parents. However, you have to consider that it’s possible to find money to help pay for college, but you must fund your own retirement. Choosing retirement over college tuition does not mean forfeiting your help; it simply means that you have set up a plan with a financial advisor in Colusa that will fund your retirement because the money will not be used to pay college expenses.
Ways to choose retirement over college is to agree not to touch any money in your 401K. A job loss could have you unexpectedly needing to pay that money back, putting you in more debt. You may also wish to set up an IRA that’s strictly for retirement investments and don’t take anything out of it until you’re well beyond retirement age and need the money.
Help Your Child Plan for College Expenses
Colleges and universities provide scholarships, grants, and loans to incoming students. While scholarships and grants require some work on the student’s part, there are full and partial scholarships that can greatly reduce the overall cost of college expenses. If your child takes out a loan, he or she can fund current tuition and you and your spouse can always plan to help out with repayments in the future. When visiting a financial advisor in Colusa, make sure to ask about college savings plans and find out which avenue of paying for college would work best for your family.
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