Is it possible to save for retirement and your kids’ education at the same time? According to Walter Updegrave, it’s possible, but you really should prioritize instead of trying to do everything at once…
I think most people have enough trouble just saving adequately for their retirement. Throw in college education and it just becomes too overwhelming. Too often the result is that people don’t address either goal adequately, or they get so discouraged that they sometimes give up altogether, figuring it’s hopeless.
That’s why I recommend that people avoid trying to do too much and, instead, adopt a realistic saving plan that focuses on the most important goals first and then moving on to secondary ones.
He then goes on to rank things as follows:
(1) Emergency fund
(2) Stuffing your retirement accounts with as much money as possible
(3) Everything else (including education)
This is pretty sound advice in my book. As they say, you can’t borrow for retirement, so make sure that’s taken care of before you start saving for other things.