How To Protect Your Retirement From Expensive Lies Parents Tell Themselves

10:15 pm Retirement Planning

truth or lies e1357856295698 How To Protect Your Retirement From Expensive Lies Parents Tell Themselves

And Why Finding a Family-Oriented Law Firm Will Help You Keep Your Future In Mind While Ensuring the Best for Your Children

According to a recent study by the National Center for Policy Analysis, approximately one-third of the student loan debt in the U.S. is held by those over the age of 40. Statistics also show that almost 60% of parents with adult children are providing some type of financial support for those children. This can have disastrous consequences on retirement plans.

It’s no secret that most Americans are unprepared financially for retirement. Here are some expensive lies parents are telling themselves and what they should do to stop:

College is for everyone. Not everyone wants or needs to attend college. And with undergraduate degrees costing anywhere from $140,000-$250,000 per student, it’s an expensive lesson if your child is not cut out for college. Consider exploring alternatives with your children; some may have the entrepreneurial spirit to start a business Iike Bill Gates or Steve Jobs. Some may wish to serve their country in the military. Some may want to learn a trade and there are many well-paying jobs that don’t require a college degree.

Big-name colleges are best. Instead of targeting colleges that have prestigious reputations, consider shopping around for schools with good reputations and a more reasonable tuition.

To get a good job, you need a college degree. Actually, it depends on what kind of degree you get. If your student chooses a major that is not marketable, he or she will likely have a difficult time finding a good job.

I can pay for college and worry about retirement later. You’re not just losing what you would have saved for retirement when you fund a child’s college expenses, you’re also losing what you could have earned from employer matches in a 401(k) or seeing your money grow in another qualified retirement plan. This is money you will never get back. Student loans are available to fund education; there is no such thing as a retirement loan.

Things have changed dramatically since most parents went to college. The cost of a college education has increased 80% in the last 20 years, and there are not an available pool of jobs waiting for graduates. Both parents and children need to adjust their expectations to these new realities.

There are several estate planning strategies that can help you and your children with the cost of higher education while protecting your retirement. Get started by contacting our Orange County asset protection estate planning law firm as soon as possible.

Named the Father of the Year in 2007, Jeff Matsen, Esq. understands parents’ desire to care for their children and get them the best education possible.  He will help you devise the most effective Estate Plan that keeps you and your children’s best interest in mind.

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