Cedarville Magazine, Spring 2013

Planning for College Planning for your child’s college education can be daunting for any parent. Each family is unique, and there are many variables that affect how you should go about saving for your child’s education. A professional financial planner or tax advisor can help you with a specific strategy for your family, but there are some general guidelines that apply to everyone. Today: If your child is only a few years away from college and you don’t have much saved, you will need to focus on what assets, if any, you have that you can use for college expenses. IRAs or 401(k) retirement accounts, cash value life insurance policies, and home equity are all sources of potential cash. Tomorrow: If you expect to qualify for financial aid, familiarize yourself with the financial aid process before your child selects a college. Do a dry run through the Federal Financial Aid Application (FAFSA). This will help you estimate how much money your family will be expected to pay toward college costs each year before any financial aid is awarded. Long-Term: Start saving for college as early as possible, preferably with regular, manageable contributions that increase over time. Lou Vision, IMC Raymond James & Associates Dayton, Ohio American Dream Conference Sponsor Empty Nest This is likely the time in your life when you have the most discretionary income. You are at the peak of your earning potential, and expenses may have decreased with your children out of the home. The challenge is balancing all the priorities that can come with this stage of life — helping your adult children, growing your retirement savings, and enjoying your new lifestyle. Consider the following as you plan for this phase in life: Today: Ask yourself four questions: How much income per month will I need in retirement? Howmuch do I have to save eachmonth now to generate that amount of income in retirement?What ismy plan to get there? Can I manage this plan on my own, or should I seek professional guidance from a financial planner? Tomorrow: Evaluate your progress against your retirement plan. Sit down with an estate planning attorney to review your will and legal documents. Long-Term: Review your retirement plan and all possible sources of retirement income including Social Security, pension(s), and your portfolio. Evaluate the level of risk you are taking in your investments and confirm that this is appropriate for your age and your retirement goals. Scott Simons ’01, CFP® Financial Counseling, Inc. Springboro, Ohio In Retirement Retirement is that stage in life when you shift from building your assets to using your assets. There are not only challenges in navigating financial strategies, but also challenges in sorting out your security and significance without the daily boost of interacting with co-workers. Fortunately, retirement usually comes with plenty of warning, and there are several key considerations as you prepare for it. Today: For a married couple, there are more than 100 combinations of ways to receive Social Security benefits. Seek out a financial professional who can help you determine the best option for you and your spouse. Tomorrow: Protect your retirement savings by obtaining long-term health care insurance.These policies canhelpprotect your assets for your spouse or your children and give you independence, dignity, and choices when the time comes. But don’t procrastinate — any slight health change can significantly impact the cost or even your ability to qualify for this coverage. Long-Term: Discuss your retirement plan with your children. Explain your estate documents. Introduce them to your advisors or planners. Let them help you when you downsize your home (or belongings). Including your family promotes harmony during the years when everyone needs to come together. Shane Tenny ’98, CFP® Spaugh Dameron Tenny Charlotte, North Carolina Cedarville Magazine | 25 in Order