What’s more daunting, paying for college or paying for your retirement? While one year at a public four-year university costs $9,139 (or $31,231 at a private school), you can only guesstimate how much money you’ll need to fund your golden years.
That’s why deciding whether to funnel more savings towards your child’s education or your retirement savings is a particularly tough decision. Our latest article on Yahoo Finance, Is It Better to Save for Retirement or Your Child’s College Fund?, examines the pros of each scenario. Saving money for your daughter’s education can make her transition to adulthood smooth. Not only will she avoid struggling to repay debt on an entry-level salary, but it’ll also reduce your own tax bill if you place the money in a 529 savings plan. On the flip side, however, your child could borrow money to pay for her school whereas you can’t borrow money to replace the nest egg that you never built. And if you don’t invest in a retirement account, you could be missing out on a valuable company match, too.
A difficult call, right? Ultimately, you have to pick the option that works best for you and your family’s financial future. Once you do, professionals from TradeKing Advisors can help create and manage your investment portfolio, while you adjust your saving levels as life necessitates.
How do you choose between something in the future and something in the distant future?