The title sounds like that old joke about what comes first; the chicken or the egg?
I have been going through this dilemma myself over the last few years. I have one son in a New Jersey prep school this fall. He will be in college the following year.
Right behind him is his sister, who is a senior in a Minnesota high school this fall. She will be a college freshman the same year as my son. I will have two kids in college at the same time for at least four years.
My financial priorities have been clear for the last several years. Several of my clients have had to make this same set of decisions before. I have learned my lesson well from their experience.
My kids can always get a loan for their college expenses. I have never heard of a loan for retirement.
I have maximized the amount of money that I put in my company 401(k) retirement plan every year. And I will continue to do so until I retire.
If my kids need help paying off their college loans in the future, I can always help them retire their loans as soon as possible.
My retirement comes first. My kids’ college expenses come second.
Ric Lager
Lager & Company, Inc.
