User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


70° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Share your Photos, Videos, and Stories on uShare! Click here to get started.

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

Retirement Savings vs. College Tuition

November 7, 2011, 9:50 PM by Angela Kennecke

Retirement Savings vs. College Tuition
SIOUX FALLS, SD - Do you fund your own retirement or pay for your child's education?  A new study finds that parents often see their child's tuition bill as equal to, or more important than funding their own retirement.

But if you don't put your own retirement first, your kids could end up paying your medical bills instead of their student loans.

The rising cost of college and increase in student debt load has many parents torn between funding their child's education or their own retirement. But financial planners say don't sacrifice your savings for your child's tuition.

"Your retirement is ultimately the most important thing because the dollars that kids can get on Pell Grants and students loans is such a low interest rate right now, they can afford to pay those back once they get a job. But you can't go back and save for your retirement 15 years," financial planner Rob Huber said.

Huber says parents don't have the luxury of time, while their children do.  And most kids can handle the payment.

"It's a tax write off as well; the interest they pay on the student loan is a tax write off. If they just manage it; probably living in an apartment or affordable home, adding on a student loan payment isn't going to kill them," Huber said.

Huber also says many parents don't face the issue until their kid’s college is staring them in the face, and they need to start saving much sooner for both retirement and college.

"You've got to do both and you've got to start when they're born. I hate to say it. You need that 18 years to get into bigger dollar amounts or get that nest egg built up," Huber said.

In the survey, low-income households were most likely to say they would pay for their children's college over saving for retirement.

Previous Story

Next Story


Comments







Sponsored

 


You may also like

Deadly Crash On I-29

7/3/2015 6:38 PM

A Brookings man is dead following a two-vehicle crash on I-29 Friday afternoon, just south of Baltic.

Full Story
Spearfish Woman Dies In Rollover Crash

7/5/2015 12:25 PM

A Spearfish woman was killed Saturday in a single-vehicle rollover crash outside of town.

Full Story
Woman Dies After Boat Collision Below Missouri River Dam

6/30/2015 9:46 AM

A 68-year-old Nebraska woman has died after a collision of two boats below Gavins Point Dam on the Missouri River.

Full Story
Arlington Woman Dies Before Crashing Vehicle

7/4/2015 2:36 PM

An Arlington woman has died following a crash Friday night, but authorities say her death was not a result of the accident itself.

Full Story
Firefighter Suspended For Flying Confederate Flag In Parade

7/5/2015 4:34 PM

A Minnesota volunteer firefighter says he's been suspended for flying a confederate flag from an engine during a holiday parade, and that he expec...

Full Story


Events