Since the economy has been so uncertain over the past few years, many parents have had to make tough decisions when it comes to paying for the kids’ college expenses. Many parents have found it very tempting to tap into their retirement accounts or reduce future retirement contributions to help pay for college. Doing so puts retirement savings at risk. And, it’s important to think about who is going to help you out in retirement?
Put Your Oxygen Mask on Before Helping Others
This phrase is very common in the aviation industry and is a great way to think of how you should use your retirement dollars. You will have financial needs in retirement and you most likely will not be able to work to earn more income once you are retired. So, it’s important to make sure you earn your living now. This does not mean that you shouldn’t help your kids once they are of college age if you have the financial means. Remember, they will still need your advice and guidance too.