Retirement First! Then Education Funds…
As mentioned in: Retirement First! Then Education Funds…Part I, You are debt free! Now what? Saving for your children’s education needs to come second to saving for your retirement. Your child’s degree will not pay for you to be able to live comfortably in your retirement years. If you save for retirement first, you will be able to move to the next stage to save for your child’s education fund as well.
Non-Registered Savings and Investments
Not only can non-registered savings and investments include savings/chequing accounts but also investments such as mutual funds, stocks and bonds. This is beneficial in terms of short-term savings and is also easier to access in case of an emergency.
Basic Savings Account
Interest rates are usually low. Your money does not grow due to inflation. However, you are saving money and your savings are accessible at all times and protected by the Federal Government to a maximum of $100,000.
Talk to a financial advisor or trustee in bankruptcy for retirement savings advice. Once you have started to save approximately a percentage of your income (hopefully between 5% and 15%), you can then begin to research options to save for your child’s education. Remember: Retirement First!
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.