Planning for Retirement

[ryan]

With the economy like it is, just paying the bills is enough of a challenge. Right now, any IRA contributions I make are going to be small, but even a few dollars a month will be better than nothing.

These financial websites talk about paying yourself first when it comes to building your savings. I think they're right and, when your budget is tight, it's probably the only method that works.

 

[Michael]

Ryan, paying money into your Roth and 401K are probably more important than anything you can spend money on above basic survival costs. Providing for your old age is even more important than sending the kids to college. Kids can foot their education costs if need be. Old people cannot get money when there is none to be gotten. If they can no longer work, it's quicksand.

 

[ryan]

You're right about college, Michael. I know that some parents feel like they are obligated to pay for their children's entire education. The problem is that those same parents often end up expecting their children to support them financially when they can no longer work.

My outlook is that parents aren't doing their children any favors when they don't plan for their own retirement. I worked and paid for most of my own college expenses. I would have felt terrible if my parents had to suffer in their retirement years because they had tried to foot the bill for my education.

 

[Victor]

I argue about this with my wife sometimes. She wants to set up college education funds, but we are still trying to get out of debt while simultaneously setting up a retirement fund. I keep reminding her that there are no loans for retirement but there are for college.