You’ve heard us talk about a long-term investing strategy being the first step in any financial plan, especially one that is trying to satisfying both your retirement and your children’s future. Although it is hard to plan for both, here are a few points to keep in mind, and keep you from going crazy as you try to figure it all out.
Use long-term investment strategies by saving now.
Accumulating wealth over a number of years is the best way to approach this situation, as the resources needed for both are substantial. Retirement savings especially need to start as early as possible to fund two-plus decades of retirement. Education funding can come quicker, but the longer you save, the less additional funding will be needed to achieve your educational goals.
Protect Your Investments
If you are the major breadwinner for your family, you need to be saving aggressively, especially if you feel that your earning potential may be at its peak. The reality is that job security and income are not what they used to be. Therefore, you need to protect your investments by having appropriate strategies in place to manage unknown risks. Portfolio diversification to mitigate investment loss and insurance protection against disability or even death can help offset the hardships to your family if your earning dollars cease to exist.
Explore Your Options
Explore the options for reducing the costs of education for your children. Only applying to in-state public universities can help reduce costs, and attending a community college for two years to earn credits for attending a major university or college also eases financial burdens. And it always pays to explore options for reducing costs based on financial aid, scholarships, or low-interest student loans.
Although it might seem overwhelming, saving for retirement and college can be done: and done a lot easier the earlier you start. If you are still struggling with all these decisions, speak with your financial advisor to help you negotiate and fund these important milestones in life.
If you still have concerns, you can call Mooney Lyons at 1.847.382.2600, or visit us at mooneylyons.com. We can help ease the complexity and reduce the anxiety in many areas of retirement planning — so you can focus on a future built on good financial sense.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
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