Don't Raid Your 401(k) To Pay For College - KTUL.com - Tulsa, Oklahoma - News, Weather & Sports

Don't Raid Your 401(k) To Pay For College

Posted: Updated:

Here's a financial challenge many parents will find themselves in at some point... how to pay for their children's college tuition. A new study shows that many intend to dip into their own retirement accounts to do it.

Nearly a quarter of the nation's parents who are saving for their children's college education plan to use some of the money in their 401ks, IRAs and pension plans, according to a new study from Sallie Mae and Gallup.

Your intentions may be good, but financial advisors say raiding your retirement account is risky. Steve Ellis, with Seasons Financial Group in Tulsa, says it may delay your retirement date, and when you do retire, you might run out of money sooner. So what can parents do?  Ellis advises to:

  • Get with a good financial planner to crunch the numbers.
  • Evaluate other options to pay for college.
  • It may be better for a parent to take on an extra job than dip into their retirement fund.

Other alternatives?  Just half of the parents polled said they were familiar with 529 college savings plans, which are available in every state.  

And how about this one? Maybe the student can help out by getting a part-time job.  Just a thought.

Here's more on the results of the College/Retirement survey.

  • NewsMore>>

  • Walgreens Hopes To Thwart Pill Thieves

    Walgreens Hopes To Thwart Pill Thieves

    The pace behind the counter at any Walgreens pharmacy is quick and speedy, but starting today, when it comes to certain drugs, the brakes are being applied."Walgreens has expanded the use of C-2 time delay safes for our pharmacies across the state of Oklahoma," said Walgreens' Loss Prevention Manager Mike Schaeffer.The safes will contain the drugs that thieves routinely steal from pharmacy after pharmacy."The quickest way for these individuals to get this is to just walk into one of these pha...More >>
    The pace behind the counter at any Walgreens pharmacy is quick and speedy, but starting today, when it comes to certain drugs, the brakes are being applied."Walgreens has expanded the use of C-2 time delay safes for our pharmacies across the state of Oklahoma," said Walgreens' Loss Prevention Manager Mike Schaeffer.The safes will contain the drugs that thieves routinely steal from pharmacy after pharmacy."The quickest way for these individuals to get this is to just walk into one of these pha...More >>
  • Hit & Run Suspect Pleads Guilty

    Hit & Run Suspect Pleads Guilty

    A man accused of leaving the scene of an accident that injured a Broken Arrow High School athlete entered a guilty plea Wednesday afternoon.More >>
    A man accused of leaving the scene of an accident that injured a Broken Arrow High School athlete entered a guilty plea Wednesday afternoon.More >>
  • Female Entrepreneurs Balance Work & Home

    Female Entrepreneurs Balance Work & Home

    Celebrating successful business women making their mark here in Green Country.Broken Arrow's Chamber of Commerce hosted a luncheon Wednesday featuring three women who started their businesses locally.Lisa Riley from Pinot's Palette, Shannon Wilburn from Just Between Friends and Jill Donovan from Rustic Cuff were the guest speakers.The ladies discussed the challenges of being an entrepreneur and wearing many "different hats" at once."I'm used to being in corporate America, where I have an HR d...More >>
    Celebrating successful business women making their mark here in Green Country.Broken Arrow's Chamber of Commerce hosted a luncheon Wednesday featuring three women who started their businesses locally.Lisa Riley from Pinot's Palette, Shannon Wilburn from Just Between Friends and Jill Donovan from Rustic Cuff were the guest speakers.The ladies discussed the challenges of being an entrepreneur and wearing many "different hats" at once."I'm used to being in corporate America, where I have an HR d...More >>
Powered by WorldNow

P.O. Box 8 Tulsa, OK 74101-0008

Powered by WorldNow

All content © Copyright 2000 - 2014 Worldnow and KTUL. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.