is the season when it feels like there’s money constantly going out the door and relatively little going in. Between end of the year expenses, property taxes and Xmas gifts and all the little unforeseen incidentals, it’s easy to feel a little financially deflated at the end of the year. As my dad used to joke when we were kids, as long as there are checks in the checkbook there’s money in the account, right?
This is a subject that’s been on my mind a lot lately. The debt-load you need to take on to become a dentist is nothing short of crushing, let alone a practice acquisition loan and a mortgage if you’re lucky. Weighed down by all that red ink it’s tough to look past the nose on your own face. Debt-reduction becomes something of a desperate quest and although my accountant assures me that paying off debt is exactly the same as building savings, I am acutely aware that I’m basically in survival mode — which is to say I’m paying off my debt, but my savings account isn’t anything I would call “comfortable”.
I’m just a few days away from turning 41. At best I’ve got another 30 workable years in me… if I’m lucky. My oldest is about to turn 9. That’s the 1/2 way point. The years we have to get her ready for college are just as few as the years we’ve had since she was born, and those years FLEW by.
I have realized that there are things a responsible member of society must do no matter how painful: Pay taxes, take care of your health (re: exercise), and financially plan for the future. That means it’s time to stop living week-to-week like we did in our 20’s and 30’s and start thinking about our 70’s and beyond. It’s time to start thinking about things like 401-k’s.
In short, it’s time to start saving.
When you’re a moderately successful blogger *snort* sometimes opportunities present themselves to you. Recently I was invited to attend an event put on by ScholarShare, an organization that runs 529 accounts (I know… my eyes glaze over too with talk like that. But I have pledged to make this sort of knowledge part of the new “responsible” me… just like exercise.) 529 accounts are essentially the same thing as 401-k’s, only where 401-k’s are retirement accounts, 529’s are college savings accounts. Essentially, just like with 401-k’s, you invest your money with higher risk for larger gains in the beginning, and then as you get closer to the time when you need the money it gradually moves into lower risk investments. What particularly strikes my fancy is that for three kids that have more toys/junk than they can ever appreciate, during the holiday season family members and friends can contribute to an existing ScholarShare account or create one for a child as a holiday gifting option for as little as $25.
ScholarShare treated a bunch of bloggers to a fancy dinner to talk about 529’s and even offered a little compensation thanks to One2One Network (that was nice of them) if we shared the experience on our blogs. In truth, this is a talk I would have gone to whether or not there were blogger incentives. Saving for college is something I need to get serious about and I wanted to hear what they had to say.
The short story is the people from ScholarShare came off as very genuine and honest. I was wary of walking into a timeshare-pitch sort of evening. There was no salesmanship, nothing pushy, no used-car-salesman vibe at all. In fact, since they partner with TIAA-CREF they are a non-profit, so they don’t pay their bills with transaction fees like other financial planners. All they wanted was to get the word out that 529’s are the best way to plan ahead for college savings, and that they would love to be considered by anyone looking into one.
For my money, they seemed like a legit outfit worthy of consideration.
That said, I’d like to try something a little different with this post.
For the sake of getting my head around how to financially prepare for my kids’ college, I’d like to start a little conversation in the comments below. How are you preparing for college expenses (or how did you prepare)? Do you think college is even an investment worth making in today’s world? (There’s a good argument to be made that it isn’t). What are your fears about saving for college/retirement? What do you know now that you wish you knew then?
In the comments below share your knowledge. Share your fears. Share your questions. Maybe we can help each other out.