Sacrificing your retirement savings to send a child to college benefits no one—not even the student.
Yet parents wonder what they should do to help their children pay for a post-secondary degree. Some consider raiding their retirement accounts, such as their 401 plans and individual retirement accounts, while others stop investing for retirement altogether to fund a college savings account during some of their best earning years. A few will choose to co-sign student loans instead, which is equally as dangerous.
How to tackle the issue: Financial advisers warn parents to never commit more of their finances to education than retirement. But there are ways to make it work for those hoping to help their children earn a Bachelor’s degree with as little debt as possible while also eventually retiring comfortably.
Take for example, a parent 10 years away from retirement looking to take $50,000 out of an individual retirement account . Assuming an average return of 5% as well as 0.25% in investment fees, that parent would lose out on more than $29,000 over the next decade if she made that withdrawal for her child’s college education, according to Andrea Feirstein, managing director of AKF Consulting.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
84% of borrowers say student loans are tanking their retirement savingsFinancial experts say that despite the competing demands, when possible, millennials need to make room in the budget to pay down their student loans and save for retirement.
Baca lebih lajut »
Ga. superintendent gives up $10k bonus to help students apply to college
Baca lebih lajut »
Providing Pathways to EducationIn the case of the San Diego Workforce Partnership, its newly launched ISA targets more than the typical college student. The nonprofit’s mission is to offer job search and career development resources to all San Diego County job seekers 18 and over regardless of income or background at no cost.
Baca lebih lajut »
A superintendent will donate his bonus to pay high school seniors' college application feesThe superintendent of a Georgia public school system is donating his $10,000 bonus to help high school seniors in his district pay their college application fees.
Baca lebih lajut »