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Showing posts from July, 2012

Don't Sabotage Your Retirement to Pay for College

It's quite normal that parent's desire to pay for college expenses for their children. However, doing so often is a competing objective against becoming financially independent and funding one's retirement. Emotions aside, remember there's only one chance at retirement, but your children will still have a lifetime of opportunity whether you pay for all, part, or none of their college.

Christine Benz from Morningstar recently wrote on the topic, saying:

"But by multitasking as so many parents do--saving for college and their own retirement at the same time--they run the risk of coming up light on the retirement front with no way to make up for the shortfall, except for working longer. The old saying about this topic is dead-on: Your child can get a loan to pay for his or her college education, but no one will give you a loan to pay for retirement if it turns out you haven't saved enough. Given increasing rates of longevity, rising health-care costs, and what many…