College or Retirement?

College for the kids or retirement for you? Which goal has the highest importance? Or can you possibly save for both? These are a couple of the most frequently asked questions of financial planners.

First off, don't criticize yourself about your money management. It is very difficult to accomplish either one of these goals. The purchasing power, the company pension plans, the increase of education and starting families earlier play a huge part in such difficulties.

And let's face it -your retirement should have an emphasis on your own life. Let your children go to a high-priced four-year private school if you wish, and give them the gift of learning to use their money wisely by paying for it themselves. Look at it from this point of view, if you spend your money on college, then a few years into retirement your savings will be gone. Your social security may not be enough to make ends meet.

Just ask my 90-year-old great aunt how far her $638 Social Security check stretches each month!

The best thing to do for your family is to stay financially strong, and put your retirement first. It may sound selfish, but it is truly the best strategy for your family overall.

If you want to try to save for both, here's some advice. Start while the children are young, and set them up a bank account. Many financial planners recommend that children set aside 25% of their earnings into this bank account. This could be money earned from chores, good grades or even holiday gifts. When the child reaches high school age, then they can start a part-time job and supply that percentage through their earnings. This will not only help save money for college, but it will help teach your children important economic lessons.

So again, pay attention to your future first and your children will appreciate it in the long run. Don't let something like not paying for college get you down. Your children will need you throughout their life far more than your money. The protection of your finances will ensure an independent retirement and leave no burden on future generations.

Retirement Communities

Oftentimes as retirement approaches, many people choose to move into a retirement community as opposed to a private home. There are many things to consider when taking this route in your retirement.

The first step in shopping for a retirement community is taking a good look at what you want...much like a personal inventory. Characteristics such as age, health, marriage, financial status, religious preference, personal interests and hobbies will help define the type and location of retirement communities best suited to an individual's or couple's personalities and capabilities. Don't worry...there are plenty of options when it comes to retirement communities...there is one just for you!

The fees and ongoing costs of a retirement community can vary widely. Some retirement care communities provide unlimited medical and nursing home care as part of the total package. Others include a certain amount or level of care, but charge more if you exceed the limits. Still others are "fee-for-service," with the charges depending on the care needed.

Many communities will require applicants to pass physical and mental checks. Applicants with cancer, strokes or dementia may have their applications rejected. Even facilities that accept people with unhealthy conditions do so on a space-available basis. Therefore, the best idea is to apply while you are still healthy. People who wait until their first health crisis to apply might not get in.

So-called "independent living" retirement communities are designed for seniors who are relatively independent, both physically and socially. The primary perk in this kind of retirement community is maintenance-free living; no house and lawn upkeep, linen service, trash pickup, transportation, and lunch served in a common dining center. These kinds of retirement community homes give seniors the freedom to truly enjoy the "Golden Years". Activities are another big part of independent living communities and often include crafts, exercise classes, live entertainment, movies, parties, outings and overnight bus trips, each adding a new dimension to the senior's experience. Residents generally choose apartments from one of three floor plans.

When looking at a retirement community, find out if it is accredited. The Continuing Care Accreditation Commission is the only accrediting agency for continuing care retirement communities. Ask how medical care is provided. Is assisted living or nursing home care on site or on-call? Scrutinize the agreement and make sure you thoroughly understand it. Also, some retirement communities will let potential applicants spend a night in the retirement community home and take a meal. If you do this, take every opportunity to talk to as many other residents as possible to get a truly unvarnished view.