These days it’s not uncommon for parents to postpone starting a family until both spouses are settled in their marriage and careers, often well into their 30s and 40s. Though this financial security can be an advantage, it can also present a dilemma–the need to save for college and retirement at the same time.
The prevailing wisdom has parents saving for both goals at the same time. The reason is that older parents can’t afford to put off saving for retirement until the college years are over, because to do so means missing out on years of tax-deferred growth. Moreover, because generous corporate pensions (and lifetime job security) are now the exception rather than the rule, employees must take greater responsibility for funding their own retirements. Regardless of one’s circumstances, it’s advisable to consult with a financial advisor to discuss specific objectives.