Sunday, October 12, 2014
College Financial Planning Tips: Crucial Mistake Parents Must Avoid
So even if Junior is just about to start school, you’d be wise to start college financial planning now. As John McDonough of Studemont Group College Funding Solutions, LLC says, though, you’ll want to avoid these crucial mistakes: Borrowing from Your Retirement Fund A lot of parents think that they can simply “borrow” money from their 401k plan to fund their child’s college education. Chances are, though, your kid will enter college during your 40s or 50s, leaving you precious little time to pay off that borrowed sum. Remember: it’s always easier to secure a student loan than a retirement loan, so don’t touch your nest egg if you want to retire on time.