Should I Use Retirement Savings to Pay for My Child’s College Education?

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.

No the kid going to support you in retirement 😈👹👺🤡

In short. No.

VictoriaVenega7 No. Nein. Non. Nee. Nahi. Niet. Voch. Never spend retirement money to pay for a child or grandchild's college. There are no scholarships for retirees. Instead, help them earn more scholarships. My book, Free College, shows you how,

You can borrow for school, you can not borrow for retirement So that is a FIRM NO!!!!!!

You should have started saving for education by the time they were five.

Obviously not.

If you have a home and 55 years or older, you can responsibly tap into the equity of your principal residence and free up the monthly cash flow for your child’s college education or other things. Ask me for more details. This solution is from HomeEquityBank

Give them a loan, no interest at first then scale it to your 401k returns. They don’t pay, their inheritance goes to charity.

Yes, the less work your children have to do the lazier they can be.

Education Education Latest News, Education Education Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

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. MakeIt Hey, maybe we should go after the student loan industry. MakeIt That’s less $$$ for the the stock brokers!!! Come on people ... MakeIt Not to mention likely killing their ability to purchase a home as well. Debt it the great killer of all.
Source: CNBC - 🏆 12. / 72 Read more »

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.
Source: Forbes - 🏆 394. / 53 Read more »

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. Admirable may God bless you abundantly
Source: CNN - 🏆 4. / 95 Read more »