Saving for college and saving for retirement are two of the most common goals our clients have. College savings is really a retirement problem for two reasons. Shortfalls in savings and cash flow might be addressed by spending retirement savings, either through outright withdrawals or through loans against retirement accounts. After effects can be felt long after college graduation as potential retirement savings is redirected to pay off the loans taken against the retirement accounts. And if you prioritize college savings over retirement savings, you could find yourself living with your very well-educated childrenAlso, many employers match some portion of your retirement savings.

Source: Forbes June 01, 2024 05:41 UTC