College vs. Retirement Saving

[Anonymous]

We have small retirement savings, and no pension prospects. We have zero college savings, but we do have some cash savings. The cash/funds wouldn't last 4 years in retirement, but look like they could cover 2 years of college. What should we do with this in order to preserve it for retirement? I do contribute to a 40 1or 3 through work now, so the retirement savings is creeping up.....but realistically, it will never be enough to retire on.

Thanks for advice, or resource or web site suggestions.

[Anonymous]

How old are you and your spouse? How old are your kids? How much is in retirement? How much is in cash savings? Do you have an emergency fund? We need more info in order to be of any help.

[Anonymous]

I would basically not plan on helping with college, keep some cash in an emergency fund (which could be an internet bank, some rolling CDs, or possibly some I-bonds), and probably put whatever you don't think you need for an emergency into a Roth IRA (where you can access the amount you deposit after 5 years, I think, if you need to).

[Anonymous]

We're 50, 1 child, college in 6 years, underwater in mortgage for (very modest) house, but in no danger of foreclosure. 100,000 in cash/investments. 100,000 in retirement plans. Wondering if at this age we can shift the savings to retirement, figuring we are close enough (age wise) to be able to access it in emergency circumstances.
Putting 14,000 year in retirement, but otherwise no "leftovers" (or vacations). Retirement savings might have to become college savings, but it is how the money is being saved right now. Thanks again for any suggestions.

[Anonymous]

Retirement first, college second!
Trust me, your fabulous child has no interest in taking care of you when you're old....so make sure you have enough to live on!
Never hurt anyone to get loans for college, they'll be fine if they have to do that!

[Anonymous]

Always, always retirement first!!!

[Anonymous]

Look at how financial aid is determined (if you can figure it out). I think the schools may assume more money can be contributed from savings accounts then if that same money is locked away in a retirement account. This could help resuce the family contribution portion.

[Anonymous]

Anonymous wrote:We're 50, 1 child, college in 6 years, underwater in mortgage for (very modest) house, but in no danger of foreclosure. 100,000 in cash/investments. 100,000 in retirement plans. Wondering if at this age we can shift the savings to retirement, figuring we are close enough (age wise) to be able to access it in emergency circumstances.
Putting 14,000 year in retirement, but otherwise no "leftovers" (or vacations). Retirement savings might have to become college savings, but it is how the money is being saved right now. Thanks again for any suggestions.

Retirement first. I am not trying to be mean, but at 50 years of age with only 100K for retirement (even 200K if you count your investments), you are way, way behind and will need to max out your retirement every year for the next 15 years to even think about possibly retiring at 65, and that's if you don't get put out to pasture (age discrimination) in the next big downturn and lose your job. Did that scare you? It should. You are at a crisis point and there is no way you can afford to contribute to your child's education.

[Anonymous]

you can borrow for college you can't for retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're 50, 1 child, college in 6 years, underwater in mortgage for (very modest) house, but in no danger of foreclosure. 100,000 in cash/investments. 100,000 in retirement plans. Wondering if at this age we can shift the savings to retirement, figuring we are close enough (age wise) to be able to access it in emergency circumstances.
Putting 14,000 year in retirement, but otherwise no "leftovers" (or vacations). Retirement savings might have to become college savings, but it is how the money is being saved right now. Thanks again for any suggestions.

Retirement first. I am not trying to be mean, but at 50 years of age with only 100K for retirement (even 200K if you count your investments), you are way, way behind and will need to max out your retirement every year for the next 15 years to even think about possibly retiring at 65, and that's if you don't get put out to pasture (age discrimination) in the next big downturn and lose your job. Did that scare you? It should. You are at a crisis point and there is no way you can afford to contribute to your child's education.

That's life as a teacher with many years of furloughs and salary freezes. Small small pension if the states don't go bust. No vacations. Used cars. No credit card debt. It's just the way it is. Thanks for the cheery encouragement.

[Anonymous]

Remember it looks like the R's are going to take over the Senate and be able to change Medicare. You are going to have to paid for your medical care. So I don't think you can paid for college as well. A lot of people are looking overseas for college, great schools and much cheaper!

[Anonymous]

Anonymous wrote:Remember it looks like the R's are going to take over the Senate and be able to change Medicare. You are going to have to paid for your medical care. So I don't think you can paid for college as well. A lot of people are looking overseas for college, great schools and much cheaper!

Same for retirement and healthcare.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're 50, 1 child, college in 6 years, underwater in mortgage for (very modest) house, but in no danger of foreclosure. 100,000 in cash/investments. 100,000 in retirement plans. Wondering if at this age we can shift the savings to retirement, figuring we are close enough (age wise) to be able to access it in emergency circumstances.
Putting 14,000 year in retirement, but otherwise no "leftovers" (or vacations). Retirement savings might have to become college savings, but it is how the money is being saved right now. Thanks again for any suggestions.

Retirement first. I am not trying to be mean, but at 50 years of age with only 100K for retirement (even 200K if you count your investments), you are way, way behind and will need to max out your retirement every year for the next 15 years to even think about possibly retiring at 65, and that's if you don't get put out to pasture (age discrimination) in the next big downturn and lose your job. Did that scare you? It should. You are at a crisis point and there is no way you can afford to contribute to your child's education.

That's life as a teacher with many years of furloughs and salary freezes. Small small pension if the states don't go bust. No vacations. Used cars. No credit card debt. It's just the way it is. Thanks for the cheery encouragement.

You must not be OP because the OP said "no pension prospects." But, people in this situation don't need cheery encouragement. They need to save like their life depended on it or just plan on working until they die. Really, there aren't many other options unless you are able to squeeze out a living on SS, which few people can do, and certainly not in a HCOL area.

[Anonymous]

Oh come on- people move to a lower cost of living area. I'm 28, and I know everyone of my generation will have to work until they die.

For college- I still think you can support your child somewhat. I'd encourage him or her to go to NOVA for the first two years, then perhaps live at home and attend GMU.

[Anonymous]

Put $ to retirement first. This is the longstanding recommendation of most well regarded financial pundits. One can w/draw from many retirement accounts w/o penalty for use for kids education. Can't easily switch out of 529 plans to use for retirement. Kids can earn scholarships, take out loans, work while in college, attend lower cost schools. And it still works to pay a bit ahead on home mortagage when you can so that home is paid off before or early in retirement. Then fixed housing costs go down to taxes, utilities and repairs. Worked fine for my parents and grandparents.