Retirement vs. Education savings is a balancing act
A question on many of our clients’ minds is whether they are saving enough for retirement and their children’s education. For clients in the asset accumulation phase of life with young children, there are often competing demands on their cash flow, which makes it difficult to adequately save for both retirement and education. Oftentimes, clients must decide whether to prioritize saving for retirement or education.
Faced with this choice, many parents ultimately choose education savings. In fact, a recent survey from T. Rowe Price revealed that almost three quarters of parents with younger children prioritize education savings over retirement savings. The same dilemma also applies for parents with adult children: another study from Merril