College vs. Retirement?

We work for a lifetime to provide for our children in hopes of a bright future. Many parents see college savings as part of another investment and at some point, may ponder the challenging dilemma of using retirement funds to pay for college. It’s critical however, to consider the following:

 

  • Tapping into retirement funds to pay for college may result in less for your retirement expenses. Also, withdrawing from a retirement account negates the power of long-term compounding growth, which could have a lasting impact in retirement.
  • College loans can be paid back, retirement growth cannot. Be sure to understand all college funding options available, including financial aid resources such as grants, scholarships, and federally guaranteed student loans.
  • College graduates will hopefully be in a better position to pay back a student loan than you may be during the retirement years.
 

It’s important to keep college savings separate from your long-term finances, including retirement savings. By doing so, you protect your ability to reach your retirement income needs and ensure you are poised to help your child(ren) in other ways down the road.

Let us help you design a college funding strategy that takes into consideration your current financial situation and long-term retirement goals. 

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IMPORTANT DISCLOSURES

Product availability varies by carrier, state, and individual eligibility. Not all products listed are available in all states or to all applicants. Product descriptions on this page are for general informational purposes only and do not constitute a solicitation or offer to sell any specific insurance or annuity product. All products are subject to underwriting approval and applicable state insurance regulations. Riders and benefits are subject to additional charges, terms, conditions, and limitations. Variable products involve investment risk, including possible loss of principal, and are sold by prospectus. FundaDream Insurance Solutions, Inc. is a licensed California insurance corporation. Consult the applicable carrier contract for full terms, conditions, and limitations. FundaDream’s charitable giving is made from general corporate revenues at the sole discretion of FundaDream leadership and does not constitute compensation to any licensed insurance professional.

The decision to purchase life insurance should be based on long-term financial goals and the need for a death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value for loans in the policy’s early years.

The information provided is not written or intended as specific tax or legal advice. FundaDream, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Insurance products and services are offered through FundaDream Insurance Solutions, Inc., California License No. 0M95835