Why Education Planning Should Be Part of Your Financial Plan

Why Education Planning Should Be Part of Your Financial Plan

Every parent wants to be there for their children as they move toward adulthood, and that usually involves helping them with education planning. More often than not, it also involves helping them fund their education as well. At some point in the planning process, a tough financial decision must be made by parents in choosing whether to fully or partially help with college expenses. As costs rise every year, fully funding college education seems less and less likely for most families. The competition for capital, often a choice between funding your own retirement vs. your children’s college education, can be terrifying for parents.

Competition for capital presents itself in more than just college vs. retirement saving. The question presents itself in everyday life. Do you buy a new car or put money aside for the new roof? Do you send your children to summer camp this summer or go on that nice family vacation you’ve talked about for years? Do you open up 529 plans for your children’s education or spring for after school classes to help your kids get into a good college or university? This competition for capital, however, becomes more critical when it comes to retirement planning. The real question is this . . . “Will you have enough money in retirement, or will you become a burden to your children by running out of money?

Financial planning is designed to help you with these important questions. As part of the planning process, one of the first tasks is to identify, clarify, and prioritize your financial goals. If you already have these goals in place, re-prioritizing them in light of any changes is equally important. Changes in costs, where your son or daughter was accepted, the cost of living in the college city, and changes in financial aid and scholarships will all have an effect on education and retirement planning. The process of clarifying and writing down your financial and retirement goals is the first step in prioritizing what is most important and finding peace of mind. Next, determining how to fund those goals and determining the timeframe involved are also very important.

To get some perspective to the process of identifying your financial and education planning goals and determining how to fund them:

• Attend the Bell Investment Advisors Lunch & Learn
Why Education Planning Should Be Part of Your Financial Plan
October 24, noon – 1:30 in our downtown Oakland, California office
RSVP by October 22 to Jaye Roundtree 510.433.1066, ext. 100 or jroundtree@bellinvest.com

• Or view the video of our webinar on the same topic here

Watch a video of Forrest Bell, CFP®, Senior Investment Advisor, Financial Planner explaining the value of an education plan here.

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