Michael Egan Shares Tips with Business Insider on "The 11 worst money mistakes to make in your 30s"
July 6, 2015, Business Insider — In this issue of Business Insider, reporter Kathleen Elkins writes:
“After a decade of experimenting, failing, and learning from those failures, most of us have figured out how to navigate, or avoid, the most common money mistakes by the time we hit 30. However, then we face a whole new group of challenges. We consulted the experts and found out that money mistakes still run rampant after the roaring 20s, especially as major life changes are coming around, such as raising kids and purchasing a home.”
Elkins interviewed EBW’s Michael Egan, who offered some of the worst, including #2 of the top 11:
Prioritizing your kid’s education over your own retirement. While focusing too heavily on the 401(k) is a common mistake, not setting aside enough money for retirement also remains a big issue, especially when kids enter the picture.
Obviously, your child’s education is important, but “your number one priority in your 30s — even if you have a family — still has to be retirement,” says Michael Egan, certified financial planner and partner at Egan, Berger & Weiner, LLC. Think long term, he advises; if you don’t set aside enough money for your own retirement, your child may have to support you in the future, which could end up being more expensive in the long run than student loans would be.
“Make sure you’re on pace for a decent retirement before you start setting aside money for college,” he says. “Once you’re on pace for that, and you have extra funds that you can set aside for a goal like college, definitely do that.” He advises starting with a 529 savings plan.
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