Kids and retirement: The Shakiba Report | HOUSTON LIFE | KPRC 2

Updated : Sep 13, 2019 in Articles

Kids and retirement: The Shakiba Report | HOUSTON LIFE | KPRC 2


[Music] when it comes to college the price burn education continues to soar every single year and not having a financial plan for your children’s college can possibly ruin your retirement here to make sure your kiddos don’t leave you empty-handed and ways to begin saving for your future is Private Wealth Advisor with a mere prize financial trevor Shakib oh welcome back to the show thank you how are you all this is an interesting topic when we think about our kids kind of the empty nesters but then the empty wallet scenario – if you haven’t really planned for it people might freak out when they hear about this because in a blink of an eye your kids are headed off to college yeah you know this is an interesting topic kind of a shocking one when you when you read it right when you first hear it but it’s based on an article that I just read in Barron’s and it’s very true I’m coming across it a lot with clients and potential people I meet with in our industry you know when it comes to education there’s a lot of different things you can do you can get loans and work-study and work but when it comes to retirement you’re either working longer or you’re reducing your lifestyle so that’s why this is a critical critical topic we’re talking about well and the costs are pretty staggering some of the facts for your private college nearly $50,000 per year on average and by the way I mean living expenses in tuition totally separate things it really adds adds up eighty percent of parents give some supportive financial support yeah so these are just the facts right here obviously we all know about college that’s a shocking statistic but the next couple really surprised me as well eighty percent of adults give financial support to their adult children that’s the key word they’re adults and then actually that number is 500 billion annually which is two times how much people are saving for retirement oh my god that’s unbelievable so adult children means that they’ve either gone back right so there’s still the the parents are still holding on to that responsibility of their children yeah and I think in the study it was age 21 or okay but I mean you see it a lot I see it a lot with my clients where there are kids mid-20s late 20s even mid 30s that are still living at home let’s talk about a 529 plan because this is one of the that people can start saving early yeah and that’s my second point what so what can we do just start early so if you’re watching you’ve got young kids start as soon as you can 529s or a great education vehicle in fact they’re probably the best education vehicle any savings is better than none so don’t you know I hear that all the time I don’t really have much well if you have 50 bucks a month just start 100 bucks a month and look this can add up it’s not on the screen but if you do fifty bucks a month for 18 years assume 8% that’s approximately twenty two thousand five hundred if it’s a hundred a month that equates to forty five thousand so you got to get started early oh wow okay a little bit adds up all right and then also you say I mean this is you say this no matter what plan we’re looking at but those setting the education goals and sticking with them is sort of like setting your budget stick with it don’t stray from the path yeah so it all starts with a discussion and I’m always surprised when I meet with new couples or they’ve just had a child what was their experience what are we planning for is it four years a hundred percent any school in the country in Texas what if that takes them seven years to graduate you you really gotta define this and then like you said Cortney don’t deviate so if they get into an Ivy League school and you’ve planned for a school in Texas you can’t completely change everything unless you understand it’s going to dramatically affect your retirement plan what about just telling your kids though like hey we want to try to help you but you can’t just expect us to pay for everything I mean that’s well that’s yeah you know look there’s always a motion and when it’s your kids you know it’s difficult but that’s a great point you got to separate the emotion and then my fourth point is is don’t be afraid of some tough love so that definitely goes in your example but look you can’t afford even after college you can’t afford to be their bank forever and it’s probably not good for them to be in your house at age 35 either so they you just can’t afford it with the numbers and so tough love comes into the equation like here’s what we’ve got for college and if you want to go to Harvard well then you have to figure that out the rest of it on your own and let’s talk about of course return on investment that’s another conversation right yeah well everyone laughs when I say that especially my wife when I say let’s think through this but look if you approach it that way at least approach it that way that would change your perspective and so look at the cost of the college versus what their degrees gonna be in and what their salary might be meaning you probably don’t want to go to a college if you’re gonna be a teacher that cost sixty or seventy thousand a year if you’re gonna make forty or forty five thousand in your first year those numbers there start going to work and my final point here this is very prevalent a down payment for the kids that’s a nice thing to do but that’s not an investment it’s a good thing for them but it’s not a good thing for you now keep that in mind on the return on investment discussion some truf tough love from you trevor shakeela it’s great to see you as always folks if you would like more info on financial planning or if you’d like to schedule a complimentary initial consultation with trevor and it should keep a group you can call to eight one seven two four nine nine one seven or visit them online at the Shikibu group comm Trevor thanks again thank you good to see you

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