Barry Bulakites: How to Plan for Retirement and College for Your Children at the Same Time
While you want to ensure your kids get the best college education, you also want to retire comfortably. And while these two are pressing needs, how do you ensure you can plan for both? Barry Bulakites shares a few tips on how to simultaneously plan for retirement and your kid’s college.
Write Down Your Goals
How can you achieve your goals when you have not even established what they are? It is essential to take time and decide when is the right time to retire while also thinking of when your kids will be going to college. How much money are you supposed to save for your kids’ college? Once you have established these two things, devise a plan to get there. Barry Bulakites suggests spending a specific amount of money each month to achieve these goals.
Start Saving Early
Start saving for these two early on. The earlier you start saving, the easier it will be to achieve significant savings without relying so much on your income. The mistake that most people make is waiting until the kid is about to go to college or when they are about to retire, then they start saving. But when you save from when your kid is just a child, these two needs will not have to compete for your income later on.
Retirement Should Be a Priority
College is an important goal. But when you have limited funds, focus more on retirement. Keep in mind that your kid can take out a student loan or even get a scholarship. But in retirement, there is nothing like a retirement loan.
Set a Limit for College Tuition Fees
Most parents want to help their kids with college tuition, but sometimes the funds can be limited. Barry Bulakites advises parents to talk to their kids about how much they can comfortably contribute to their tuition fees. Let them choose a school within that price range. If not, they should be ready to take student loans to cover the deficit.
If Possible, Save for Both at the Same Time
Ideally, you need to try and accomplish these two goals simultaneously. Saving more money means you will not have to worry too much about college fees in the future. Even saving as little as $100 monthly for your kid’s college will go a long way. You will be surprised at how much has accumulated after ten years. No amount is too low when you are saving up for the future.
What if You Cannot Meet Both Goals?
If the numbers are not adding up when you try to save, Barry Bulakites suggests making sacrifices by doing the following:
- Reduce your standard of living
- Invest more aggressively
- Find ways to increase your current earnings
- Work part-time during retirement
Working with financial experts like Barry Bulakites can help you make sound decisions about planning for these two needs. It does not have to feel like you have to choose between the two, as both goals can be accomplished simultaneously.
