Many Americans are stuck between caring for aging parents, worrying about their own retirement while simultaneously helping their children afford higher education.
Most of us grew up with nothing. We had no college fund. We took out student loans or applied for scholarships. A lot of us will be our parent’s retirement plan.
What would you have preferred? Do you wish your parents would have planned better so that the burden wouldn’t have fallen on you? Or do you wish your parents would have saved for your college education so you could’ve graduated debt-free?
For me, the only answer is to prioritize YOURSELF and YOUR RETIREMENT. We’ve all heard there are loans for college, but none for retirement, and that is the TRUTH. There are dozens of ways to get an education, but you can’t rewind time and contribute more to your 401k.
Unfortunately, for some parents, it feels SELFISH to prioritize themselves over their kids. But how is it selfish? You are giving your children the gift of not having to worry about your golden years so they can focus on themselves and their kids. The very first generation to make that shift allows the next to build, and the following to thrive.
For example, I totally lucked out and my parents have pension and social security money that covers them 100%. They only have a mortgage, and no consumer debt. PHEW! What a relief! I am able to invest without worry that I may lose it all supporting my parents into their advanced age. If I did, then guess what, my kid gets zip, zero nada.
We all know that if the plane is going down, you put your mask on first, then help others. The same rationale applies here. Maybe that means no 529. Maybe that means no travel sports or competitive cheer. Maybe that means no pets or no new cars. Those sacrifices, and the redirection of those funds, could be the key to becoming the cycle breaker.
We all have to take a good long look at what we are doing ask ourselves, is this the right move in the LONG RUN? I would venture to guess most of us know the answer but are unwilling to make those hard decisions. So what do we do? We put it off…and put it off… and put it off until the decision makes itself. So whether you are proactive or reactive, you will have to pay the piper no matter what.
What are you willing to do to break generational curses? What are you willing to do to create generational gifts?
