What’s The Biggest Mistake People Make When Financing Their Kids’ College Education?

June 14, 2013
Excerpt by Michelle Perry Higgins

Start Shopping for Long-Term-Care Insurance at 45Don’t Deplete Your Retirement Account

Besides the big “no-no” which is not saving at all, I would say the biggest mistake is depleting a retirement account to fund a child’s college education. I understand that touching those assets can be tempting when faced with today’s college tuition and housing costs. But you really need to consider the long-term implications of this decision long and hard. Work with your financial planner to explore all other payment options. The opportunity cost of using your retirement fund may be severe and you need to clearly understand the additional years you are adding to your work life. Unless your child is going to pay for your retirement, avoid touching those funds at all costs.

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