Balancing College Savings & Retirement: A Challenge Many Face in Their 50s

If you're in your late 40s or early 50s, you’re likely juggling a lot—kids nearing college age, retirement savings, and the uncertainty of what life will throw your way. The reality is, while you make a good income, maxing out a 401k, 529, HSA, and a backdoor Roth can feel overwhelming. The numbers don’t always add up when you're already trying to keep up with everyday expenses.

And then, there's the unknown:

• How much will college actually cost?

• Will my child get scholarships?

• Should I even be saving for college when I need to save for my own retirement?

  
  

These questions are tough, and the answers are never clear. But there is something I’ve been discussing with a few people recently, and it might offer the flexibility you need in such an unpredictable time: The Roth 401(k).

💡 Here’s the thing:

With a Roth 401(k), you have the ability to pull out your contributions tax-freeat any time. If your child’s college expenses aren’t as high as you expected, that’s money you can keep growing for retirement. But if those costs do hit harder than you imagined, you can pull out your original contributions tax-free, if needed, to pay for school.

It’s not a perfect solution, but it’s a tool that offers a little peace of mind—a hedge against the unknown. It’s knowing that whether your child’s education costs are higher or lower than expected, you’ve got options.

We’re all trying to make the best decisions for our families and our futures. No one has the exact answer, but maybe this strategy could be a little piece of the puzzle that works for you.

If this resonates, or perhaps your company doesn’t have a Roth 401k, I can help with that as well.

We’re all in this together, navigating these unpredictable times the best we can.