CONTRIBUTING AUTHOR: Jay Geddie
I know, I know… that’s a shocking title to read, but hear me out.
In a perfect world, you would be able to save for your kids’ college tuition AND your retirement. But, for a lot of families, it’s tough to do both adequately.
Long story short: if you are saving towards your children’s college fund instead of funding your retirement…
🛑 STOP 🛑
Why? Simple. YOU CAN NOT BORROW MONEY TO FUND YOUR RETIREMENT.
I know our first instinct is to put our children first, I get it. However, by not securing your retirement first you are running the very realistic risk of either never retiring or placing the burden on your children to feel obligated to financially help you down the road. And I think we can all agree, those are two outcomes we’d like to avoid.
There is good news though, there are quite a few ways to pay for your child’s education. Through loans, grants and scholarships, you will be able to send your child to college, if they decide that is best for them.
Additionally, push comes to shove, any money that you have in your 401k and Roth IRA isn’t counted as income so that will help you also in securing financial aid if needed!