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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

July/August 2018

College Debt vs. Retirement Savings

College Debt vs Retirement Savings

Much has been made of Millennials’ increasing college debt load. Complicating matters, rents are often high, while wages are generally lower when starting out in the work world. In this environment, paying off college debt and saving for retirement becomes a seemingly impossible puzzle to solve.


Difficult, however, doesn’t mean it is impossible. If you’re putting off saving for retirement because you want to pay off low-interest student loans first, think again. A little saved at a young age may potentially turn into a lot when the time comes for retirement.


Costly College
True, college is proving more costly. The Federal Reserve Bank of New York reported that total student loan debt after the third quarter of 2017 was $1.36 trillion. About four in 10 Millennials between 18 and 29 years old have student loan debt, according to the Institute of Politics at Harvard Kennedy School (IOP).


Time Matters
Still, contributing even a small amount toward retirement — perhaps in a company 401(k) plan or IRA — may potentially offer big benefits down the road. That’s because time really matters when it comes to growing your money.


Test the following statement: When contributing the same total, putting away a steady amount over long periods of time potentially grows larger than waiting for a few years and then making up the difference. Check it out: Same total contributions, but a different result. That’s because time matters.


Finding the Money
Where do you find the extra money? Pass on a streaming service you subscribe to. Consider brown-bagging it to work occasionally. Pack a snack and skip the vending machine.


Definitely put any raises or bonuses into your retirement savings efforts. And if your employer matches some contributions, try your hardest to reach that level. You’ll be surprised how a little goes a long way over time.


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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
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