Financial Planning: Balancing Post-Secondary Education and Retirement Savings

It can be difficult to get a proper investment plan in place to help you save for some of your financial goals like your child’s post-secondary education or your retirement funds. But with some careful planning and a well-designed strategy, you can get your savings right on track. Let us show you how you can start balancing post-secondary education and retirement savings without breaking the bank!

Outline Your Goals

First things first – you should have an idea of how much you’ll need to save. If you want to save for your child’s education, you should research what the typical post-secondary education costs are today. The same goes for your retirement – what is the average amount of savings you will need to live comfortably after you retire? There are online calculators that can help you, but talking to a professional who has expertise and insight is always a wise decision in gaining a more accurate scope.

Look At Your Choices

Once you have a better understanding of the goals you’ll need to achieve; you can then begin putting a savings strategy into place. If you feel overwhelmed by the figures involved, reach out to your advisor. They can help you focus on what’s in front of you, so you can stay on track and determine what the best strategy is. Their job is to help you understand all the choices that are available to you to meet your education and retirement savings goals without putting a damper on your lifestyle.

Start Early

The earlier you start saving, the more funds you will have available when your child needs to enroll in post-secondary school and when you’re ready to retire. For example, if you begin saving $100 per month for your child’s education, you can save approximately $20,000 by the time they go off to college. If you wait too long, then the number starts to decline. The same goes with your retirement savings – start saving now for better returns.

Set And Stick To Priorities

Learning to identify your priorities is another important factor in achieving your financial goals. You will face many moments in your life where you’ll need to make hard decisions between your wants and your needs – is that in-ground pool really worth it or is it better to tuck that amount away into your savings instead? It’s all about setting your priorities and trade-offs straight before you land in some bad habits of putting your wants before your needs. By placing your retirement and education savings toward the top of your priority list, you’ll have a much better shot of reaching your goals.

Be As Frugal As Possible

There are lots of ways to save more money without limiting your lifestyle. You can save by shopping at a discount grocery store, buying items in bulk, by sticking with only one vehicle, taking staycations, and limiting your shopping habits. By sacrificing a little, you’d be surprised at just how much you can end up with.

When you need an advisor to help you balance post-secondary education and retirement savings, talk to us at The Beacon Group at Assante Wealth Management Ltd. Our team can help you organize your finances and help you achieve your financial goals.