Being financially "balanced" can mean different things to different people we meet. From our perspective as financial planners, balance means maintaining quality of life today while taking the steps to secure quality of life in the future. Often this discussion involves the issue of paying down debt efficiently while still addressing other financial concerns. We recently met with someone who was working on paying down debt while trying to aggressively save for retirement at the same time. Her focus on these two items had lowered her current quality of life significantly. This post describes the approach we recommended to balance out her current financial needs with her future financial goals.
Courtney A. Schmidt | March 21, 2016
As the cost of college education becomes ever-increasing, the concern for parents who wish to help fund their children's higher education costs becomes more prevalent. People often ask us what the 'best' way is to save for their children's future college expenses. The most common answer is to begin funding a 529 plan. A 529 plan is an account specifically designed for education planning and saving. Any qualified education expenses can be covered from the account tax-free. This can be a powerful tool for education planning, but is it appropriate for everyone? This post will show an example of someone we met with where an alternative approach to a 529 plan made more sense in her situation.