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Nov 14 2011 12:00AM


We have four children and limited resources for saving for college and retirement. Would it be wise to continue to contribute to their 529 plans or use these resources to continue to build our retirement savings, invest in real estate, etc.?


“It very important, and sometimes a struggle, to juggle savings for these multiple goals,” said FPA member Adam Finch, CFP®. “There is certainly some personal preference here, but one important thing to keep in mind is that your children could very well take out educational loans and/or receive scholarships. Whereas, your retirement savings has to be funded by you and you won't have the ability to take out retirement loans or scholarships.

“Therefore, I would place greater emphasis on retirement savings. What I would do is first develop a financial plan that helps to calculate what you should be saving for your retirement. Once this gets on the right track, as well as building up an ample emergency saving fund, you could comfortably save for college knowing you aren't derailing your retirement savings plan.”

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