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
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Securities offered through Securities America, Inc., Member FINRA/SIPC. Joseph Davis, Registered Representative. Tax services provided by Davis Tax & Associates. Advisory services offered by Beam Asset Management. Joseph Davis, Investment Advisor Representative. Davis Financial LLC, Beam Asset Management, Davis Tax & Associates, Fit Divorce Planning and Securities America, Inc. are separate, unaffiliated entities.