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Imagine your life without student loan debt, credit card payments, or even your mortgage being paid off. Parents, you might think your most important financial duty is to pay for your children's education. You'd be wrong. Saving enough money for your retirement is even more crucial—and there's a way to do both—all while getting out of debt.
If you're working your way out of debt, prioritizing college savings and retirement is one of the most challenging questions you might face. If you're like most parents, you are always asking yourself—what is more important—my security at retirement or my child's education and future? It's easy to think this way because it's an emotional issue.
Analysis has shown that more parents have decided that college savings should come first. Unfortunately, these parents have dipped into their 401(k)s to pay for their child's college tuition. According to a recent Sallie Mae and Gallup study, 18 percent of parents had loans outstanding against their accounts at the end of 2015, down from 20 percent at the year-end of 2014 and more than double the amount in 2019. It's an alarming trend—one based on fear and desperation. And, after taxes on the loan and an early withdrawal penalty, it's a trend that will get quite expensive and stressful.
Everyone should prioritize retirement over college savings because you need retirement money to live, eat, and pay for shelter—the basics. If you don't have retirement money, you'll be working until you die or living on crumbs. Saving for college is extremely important, but there are actionable solutions you can implement if you're late to College Planning.
Private student loan debt volume hit $7.8 billion in 2017-18, up from $5.2 billion in 2010-11. Average monthly student loan payment (for borrowers from ages 20-30 years old): $351.00. Funding your dreams get a whole lot easier when you have no debt. We have the perfect solution for this avoidable dilemma. Let's have a discussion.
Please register for our next virtual workshop that will focus on ways to securely plan for college—and keep you out of debt. You’ll also learn about strategies we use to help you avoid paying interest on every dollar you make; how to have a tax-free source of income during your retirement years; and build an emergency fund.
“If you’re navigating your way through a financial crisis, and really don’t know where to begin, this workshop may be what you need.”
─ Greg H., Parent of dependent undergraduate student
“They will guide, equip and encourage you to make the best financial decisions for your future.”
─ Samantha P, Parent of Graduate
“You don’t want to just reduce your debt. You want to eliminate it for good! It needs to be gone and out of your life quickly as possible!”
─ Tammy M, Parent of dependent undergraduate student
“Because if you don’t change your behavior, you’ll slip right back into debt once you’re done with their debt reduction service.”
─ Jonathan & Elizabeth Z, Business Owner/Parent of Graduate
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