Balancing college savings with other financial priorities can be tricky, especially if you're also approaching retirement. This episode of Sidewalk Talk explores two real-world cases where college funding plans had to adapt. From over-saving concerns to rethinking investment strategy, it’s all about aligning goals. Watch to see how personalized planning makes a difference.
Topics Discussed:
Adjusting college savings strategies
Balancing college and retirement goals
Evaluating financial aid potential
Tailoring investment strategy by timeline
Transcript:
Hey everybody, Russell Rivera, founder and president of Voice Wealth Management, and welcome back to Sidewalk Talk. Well, it's August, so it's still the heat of summer, but it does mean winter is coming and really before winter comes, we've got to think about back to school time. And of course, when it comes to education and money, people are most concerned about college and college planning. So I wanted to share a little bit about how you can think about prepping yourself. So a couple of quick stories.
So I have one person whom I've worked with who they started doing the right things young, had begun their college savings plan and everything else. And when we started working together, I started to think about how, essentially, they had perhaps been over-saving for college. Looking at their balances, it looked like they had oversaved, and if their kids didn't end up going to a private institution, they might actually have too much money saved for college, even though the kids were quite young.
So we started thinking about do we want to dial things back and how can we use the money that they'd already saved to help them use it to the most efficient use? Not that it's a bad use now, but to use it for the most efficient use when it was time and they were ready.
The other story is about another couple who, they're both older parents and so around the time of getting the kids into college and the kids finishing college, they want to retire. So they have two goals that they have to build for that draw a lot of cash simultaneously. So we had to start thinking about how much financial aid can they expect and whether or not we're going to be able to get them the financial aid that they want. And then of course, not sabotage their retirement plans at the same time.
So also we have to think about since time they're a little older and the kids are only one or two years from school, have to think about the money that they've already saved and whether or not it should remain invested the same way, or whether or not it should go into different types of vehicles so that they don't have to take the same amount of risk to get where they want to go and accomplish that college goal. And that's the thing, is tailoring a plan based on not only where you are, but where the kids are and all of the things that go into it. It's not just college and on itself. There are a lot of things that come together and tailoring a college savings plan and a college payment plan for you and your family.
So if you think you need help with this, give us a call, email us, send us a text, and we look forward to trying to help you come up with your college savings plan for your kids, both now and in the future. So that's it for now. I'm Russell Rivera, Founder and President of Voice Wealth Management. Thanks for joining us for Sidewalk Talk and we'll see you next time.
Russell D. Rivera, CFA, CFP®, is the Founder and President of Voice Wealth Management, an independent financial services firm serving professionals, entrepreneurs, and families in New York City and beyond. Focusing on helping clients make informed decisions about saving, investing, and financial planning, Russell is committed to providing a customized approach that reflects each client’s unique priorities and experiences.