From: BreadWithSpam@fractious.net
Newsgroups: misc.invest.financial-plan
Subject: Re: Need your suggestions
Date: Tue, 14 Feb 2006 09:55:48 -0600
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	oGotI81U/YQ5qf1f8CAX8ZGYOhlsVq+ulDUMwevSCCK96VXc62/fJw==
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"bo peep"  writes:

> < able to take out money without penalty until I am 59-1/2. But for my
> children's education I will be needing money 10 years before my
> retirement age.>>
> 
> It is important to remember that your retirement is more important than
> your children's education.

That's not exactly how I would have phrased it, but the idea
is right.  As they say, you (or your kids) can borrow money for
college.  Nobody's going to lend you money for retirement.

Moreover, retirement savings which is in 401k and IRA and
other qualified plans typically don't hurt one's chances for
financial aid for college, at least not as badly as similar
savings outside of such plans (and certainly better than
savings in the kids' names).

The college financing system in our country is nearly as broken
as the health care financing system.  Costs have been going
up faster than inflation, folks go deep into debt for it, etc.
(and unlike healthcare, the product isn't actually getting
vastly better).

But know that there's nothing selfish about saving for your
retirement first and the kids education second.


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