Can't have your cake and eat it too...or can you?
Life is full of so many choices. Where are we having dinner? What clothes should I wear? Should I call in sick today? With every choice made, another option is tossed to the side. If I ride my bike to work, my car has to stay behind. If I wear dress shoes, my adidas won’t leave the closet. If I save for retirement, I can’t pay for my child’s college.
Let’s hold it right there. Sometimes in life you CAN have your cake and eat it too. Most families I meet with have two primary concerns, How do I pay for college and can I retire. While there is no simple answer to those questions, I have a few tips that will point you in the right direction
- Review your spending:
The first question I ask families is “Where are you financially?” I am surprised at how many families are unsure on their monthly expenses compared to their income. A lot of people I meet with have money that is just disappearing bit by bit through daily spending. If you develop a budget and stick to it, that disappearing money can begin to build your retirement or in a 529 plan.
2. How are you saving for retirement?
How you save for retirement is an important issue. There are many factors to consider so I have written a great article here to help you out. http://creativefinancialgrp.com/Custom.aspx?apId=16659
3. College Choice:
Choosing the right college with your student is key. A lot of our children may dream of Harvard, or Stanford, but the financial reality might not agree. There is nothing wrong with your student aiming high, encourage it, but also help them to make an informed decision. Often times attending a school like IUPUI for undergraduate studies is the best move financially, especially if you child plans to move on to graduate school after. The financial burden is much less on you and your child, and could be the difference between $50,000 in loan debt, and $300,000. It could also mean the difference between retirement and working until you’re 80. If your student is set on a school that you can’t possibly afford, let them find out how to finance it. It seems harsh, but I have found it often opens their eyes to the reality of how much money college is. Starting life with a couple hundred thousand dollars of debt is not a good plan for anyone.
4. Talk with an expert:
Take some time out to meet with a College Financial Planner, like me. Indy College Funding offers free College Financial Plans to families. It’s good to get some expert advice and a fresh look at what is, isn’t, or might be possible. You would be surprised at how much that helps.
Thanks for reading,
Kurt Supe offers securities and advisory services through cfd Investments, Inc. and Creative Financial Designs, Inc, respectively. Member FINRA/SIPC. Indy College Funding is not affiliated with the cfd companies.