SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Rogelio Gonzalez, CRPC®, CSRIC™
Financial Advisor, Prudential Advisors
Pacific Northwest Financial Group
1700 SE Mile Hill Drive, Suite 264
Port Orchard, WA 98366
Phone: 360-919-4271
May/June 2025
Balancing Saving for College an Retirement
Summer vacation is almost here. How many more summers until you have a graduate heading off to college? It always comes faster than we'd like. So does retirement. Will you be ready? When it comes to choosing between saving for a child's college education or saving for retirement, which one should be the priority?
Think About it This Way
Sure, you want to minimize the amount your child will owe for student loans. But keep in mind that there are no loans for retirement if you come up short on your savings. While there are no hard and fast rules about prioritizing your savings, the usual recommendation is to put aside money for retirement first. Your personal circumstances should be your guide. Here are several things to consider.How Much Have You Saved?
If you already have significant retirement savings, you may be able to direct more money toward saving for your children's college expenses. Be sure to run the numbers first, so you know you can afford to do this. However, make sure you're still contributing enough to your company's retirement plan to take advantage of employer matching funds.Contribute to a 529
Plan A 529 plan* allows you to make after-tax contributions to a college investment account on behalf of a designated beneficiary. One upside: Parents may be able to contribute less if others are chipping in. Grandparents, other relatives, and friends can contribute to the account. Withdrawals are tax free if they're used to pay qualified education expenses, including tuition, room and board, fees, books, and supplies.Open a Roth
IRA Although typically for retirement savings, a Roth IRA can do double duty as a college fund. You won't pay a penalty on earnings you withdraw to pay qualified higher education expenses if the account has been open for five years or longer. Any funds remaining in the IRA will still be invested for your retirement.Other Payment Options
There are a variety of ways to pay for college, including financial aid, loans, and work study. In addition, many organizations offer scholarships to students whose interests align with their mission. Start as early as you can. Work with your school's counselor throughout high school to learn how to qualify for aid.*Certain requirements may apply. Before investing, read the program offering statement and consider the investment objectives, risks, charges, and expenses. These plans are not guaranteed by any state or federal agency.
698725
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Securities and investment advisory services offered through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
"Prudential Advisors" is a brand name for the propriety retail sales channgel of The Prudential Insurance Company of America ("PICA") and its insurance company and other affiliates (collectively "Prudential"). Prudential Advisors financial professionals are licensed insurance agents of Prudential.
Pursuant to a strategic relationship among Prudential, LPLE, and LPL Financial, Prudential Advisors financial professionals provide securities brokerage services and/or investment advice on securities solely as registered persons of LPLE, an affiliate of LPL Financial. These financial professionals are permitted to brand under "Prudential Advisors".
LPLE and LPL Financial are not affiliated with Prudential or Pacific Northwest Financial Group.
Prudential, Prudential Advisors, and the Pacific Northwest Financial Group are not registered as a broker-dealer or investment advisor.
Pacific Northwest Financial Group and LTM Marketing Solutions, LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Marketing Solutions, LLC, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.