Long-term financial success for a family often includes sending the kids to college and enjoying retirement.  When you start to run the numbers it seems like achieving one will be hard enough, let alone both. The earlier you make decisions about these joint goals the better your chances of achievement. Start by figuring out approximate savings goals.

Retirement

Take a look at the budget to determine your sustainable monthly expenses. This includes determining what will be removed in retirement and what will be added.  If you plan to increase travel substantially in retirement, you will want to add this to your budget. Remember to approximate Social Security benefits. Engage retirement planning calculators online as well. ( www.money.cnn.com/tools)

College

Determining your college funding tolerance is essential. What is the type of school you would like to be ready to fund, and how much of the annual expenses would you like to pay? For example, a state university at 50% funding could be your savings goal. Again utilizing calculators to determine savings needs can be helpful. (www.savingforcollege.com)

Move Forward with Savings

Once you understand your savings needs, determine how much you can save each month and allocate savings to your greatest need. Keep in mind that loans are not available for retirement, which makes it the priority.  Many families struggle with this fact and the desiring to not saddle children with debt.  If possible save for both.

Alternatives to help achieve both sets of goals

·         Consider working part-time in retirement.

·         Take advantage of employer sponsored tax-deferred retirement plans ( 401k & 403b).

·         Start at community college and transfer for last two years.

·         Defer retirement a few years.

·         Alternate allocating your annual pay raise towards retirement or college savings.

Barbara King is an Associate Financial Advisor with Axiom Advisors (www.axiom123.com) in Merrimack, NH. She welcomes your comments and questions at Barbara@axiom123.com.

Advisory Services offered through Axiom Advisors, LLC. A registered Investment Advisor Securities offered through Cambridge Investment Research, Inc. a Broker/Dealer member FINRA/SIPC Axiom Advisors, LLC and Cambridge Investment Research, Inc. are not affiliated.