For most people, investing in mutual funds is pretty straight forward. You have specific goals that need to be met. You and your partner are approaching mutual fund investing with your eyes open and you're both on the same page. Granted, she may want that pretty cottage down by the lake and you want that new speedboat, but both your goals involve water, and that's close enough for you. But what if you're in a completely different boat? What if you know you need to invest, but you have two equally important goals pulling you two different ways? This is the case with thousands of parents who see the need to save for retirement but also want to save for the kids? college education. How can you do both at the same time? Here are a few tips.
One of the biggest factors in the college vs. retirement battle is the fact that people are putting off having kids until later in life these days. Fifty years ago, this wasn't the case, and saving for both college and retirement usually happened during two distinctly different phases in one's life. These days, now that we realize that saving for retirement is something that should be started when you're 18, not 48, the two overlap more than ever.
The gut instinct of most parents is to put the kids? future ahead of their own and cut back on retirement savings in favour of college. While this is a popular choice, it really only should be a last resort. A technique that is becoming more and more popular with parents who face saving for both at once is offering your prospective college student the chance to get matching funds from you. This is simply the idea that for every dollar they pay for, you'll match it. If you're not sure how junior will pay for half, remember, there are many ways for teenagers to save for college themselves. Almost everyone qualifies for student loans; there are scholarships for good grades as well as an after school and summertime job. Most college students work while they are attending classes, as well.
While walking the tightrope of saving for two goals at once can be stressful, a logical and determined approach to the situation is really the only way to go. Choosing retirement over your kids? education isn't a ?wrong? choice, and neither is choosing college over retirement. Everyone's situation is different and you need to make the right choice for your situation.
College Vs University Difference
I have been fortunate enough to have a college education. In fact, I spent almost ten years dedicated to the system that would give me the "brass ring". College is an expensive venture. You are required pay up front for education that you apply later. In some cases, people rack up $100,000+ bill that they have to scramble to pay off with their new "job". I know people who are skimming by trying to get the 10+ year debt paid off. I was also lucky enough to study a topic I absolutely love, art, more specifically graphic design. In school I was a sell out to all the other fine artists for "making a living" off of my art. I have had a good, some would even say, great career with my college degree. Interestingly enough, it didn't have the power to set me free.
Self education has always been a passion of mine. I love to read to expand my knowledge. I have been moved off of my couch to take action by the things I have read. Self education allows me to learn and apply the skill immediately. Of course, I like to apply my new found knowledge the minute I have learned it. Some might call me crazy stretching my limits. As I write this most people are in bed. I find this time is peaceful and inspiring, and a time to apply myself to my passion and causes. So this path of self education brings with it some challenges, and brings with it hope. It brings with it an incredible amount of wisdom to help me reach my goals. I have had two simple goals since I was a child. I want to spend my time with my kids at home. I want to travel and work from anywhere in the world.
I am extremely fortunate to share my passion with my husband. We found that through this self education, we are set for life. Our dreams are goals with time lines. They have become reality, and completely attainable. If we had settled for less, we would have regrets. Our self education has taken us on the new frontier, the internet. We have become skilled internet marketers who help others learn the same thing. We can do it from anywhere in the world. Our system works while we play with our kids.
To say "self education rocks" is an understatement! It is just as challenging as college. I would say it even tests you more. But what an awesome journey. The view is incredible, and the person it makes you become is even better than you could have imagined. At this point with all of our early goals so easily reached, we are focused on helping others reach their goals. It is our turn to help others "self educate" and give back.
Both Cdup & Guy & Michele Luminato are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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