Find Balance by Answering these 5 Questions for the Sandwich Generation
Are you faced with the dilemma of having to save for your own retirement while at the same time trying to raise your growing children, put money aside to fund their college educations and support your aging parents? How do you juggle all these financial goals? How do you determine which is more important, or what path to take? Rest assured you are not alone in this problem.
To help define a solution, answer the following questions:
- How many years until you retire?
- How much income do you hope to have in retirement?
- How many years until your child starts college?
- Will your child attend public or private college (and what’s the expected cost)?
- Do you anticipate your child will qualify for financial aid?
- Reduce your standard of living to allow you to save more now
- Invest more aggressively (although this also carries with it a greater risk)
- Expect your child to contribute more money to offset college expenses (through loans or part-time work)
- Send your child to a less expensive school (community college or state school vs. private school)
While it’s true that retirement accounts can be used to save for college, there may be negative consequences to doing so. It’s best to talk with a financial professional to determine the appropriate course of action and to make sure you’re on track to meet your goals. If you or someone you know is part of this sandwich generation, contact our office for a consultation and review of your portfolio and budget. We can help you explore the options available to you and your family.
Written by Securities America for distribution by Joseph A. Davis, CDFA.
Throughout the past two and a half months I have continued to ask myself, did we jump off a financial cliff? The answer was no. How did I know? The answer, while somewhat complex, is profoundly simple.
While it’s true that retirement accounts can be used to save for college, there may be negative consequences to doing so. It’s best to talk with a financial professional to determine the appropriate course of action and to make sure you’re on track to meet your goals.
A 401(k) isn’t the only option for retirement, but it’s definitely one of the most attractive. In many cases, it offers free money and is relatively easy to roll over when you change jobs. A financial professional can help you prepare for retirement with a 401(k) that fits your current investment style and stage in life and adapts to changes in career or investment styles.
Qualified plans, such as 401(k), profit sharing, defined benefit pension and money purchase pension plans, have defined benefits or defined contributions. A qualified domestic relations order, or QDRO, is required when dividing qualified plans.
Davis Financial LLC
A financial services firm servicing clients across Utah. We strive to understand your goals, help you manage your retirement planning, guide your overall wealth strategy and help minimize your tax liability through a long-term and trustworthy relationship.
Office Hours: M-F, 9am-5pm
Call Us: (801) 620-0586
Directions: Map It
Copyright © 2023 Davis Financial. All Rights Reserved.
This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed.
Securities offered through Purshe Kaplan Sterling Investments, Member FINRA & SIPC., Headquartered at 80 State Street, Albany, NY 12207. Advisory Services offered through BEAM Wealth Advisors, Inc., a SEC Registered Investment Advisory Firm. BEAM Wealth Advisors, Inc. is a separate entity from Purshe Kaplan Sterling Investments. Joseph Davis, Registered Representative, Aaron Schuler, Jr, Investment Advisor Representative, Beam Wealth Advisors, Inc., Tax services provided by Davis Schuler & Associates, LLC. Advisory services offered by Beam Wealth Advisors. Davis Financial LLC, Beam Wealth Advisors, Inc., Davis Schuler & Associates, LLC, and Purshe Kaplan Sterling Investments are separate, unaffiliated entities.