I spoke with a young couple this week with three young kids. Their big question was: where should we save first? Young parents may be tempted to save for college first, because of the size of the expense and how much closer they are to the first payment than they are to retirement. Why might this not be the best long-term approach? 1. The cost of delaying your retirement funding will cost you a lot in the long run. That's the magic of compounding. 2. Your contributions to your 401Ks/403bs/457s and IRAs grow tax-deferred whereas the savings you put into 529s come out of post-tax earnings. In other words, you can put away much more in pre-tax than you can after-tax. 3. Most retirement savings are not considered in the financial aid equation. As the Japanese swordsman-philosopher Musashi said, “You must understand that there is more than one path to the top of the mountain.” As planners, our job is to plug these scenarios into your plan to determine the best path for your specific situation. So if you find yourself asking the question of where to save first, ask your advisor! That's what we're here for.
Between visits to clinics, cardiologists, OB/GYNs, and countless other healthcare professionals, there is a lot of important data about your health out there. Take the necessary steps to gather, review, and organize your personal medical records.
To make the most of your home investment, it pays to better understand what a primary residence means. Knowing the status of your residence is important for financial, tax and legal reasons, and the perks will inform how you approach managing it.
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I spoke with a young couple this week with three young kids. Their big question was: where should we save first? Young parents may be tempted to save for college first, because of the size of the expense and how much closer they are to the first payment than they are to retirement. Why might this not be the best long-term approach? 1. The cost of delaying your retirement funding will cost you a lot in the long run. That's the magic of compounding. 2. Your contributions to your 401Ks/403bs/457s and IRAs grow tax-deferred whereas the savings you put into 529s come out of post-tax earnings. In other words, you can put away much more in pre-tax than you can after-tax. 3. Most retirement savings are not considered in the financial aid equation. As the Japanese swordsman-philosopher Musashi said, “You must understand that there is more than one path to the top of the mountain.” As planners, our job is to plug these scenarios into your plan to determine the best path for your specific situation. So if you find yourself asking the question of where to save first, ask your advisor! That's what we're here for.
Do you know where your medical records are?
Between visits to clinics, cardiologists, OB/GYNs, and countless other healthcare professionals, there is a lot of important data about your health out there. Take the necessary steps to gather, review, and organize your personal medical records.
Read MorePrimary Residence: A Guide | Bankrate
To make the most of your home investment, it pays to better understand what a primary residence means. Knowing the status of your residence is important for financial, tax and legal reasons, and the perks will inform how you approach managing it.
Read More