You can't take a loan for retirement.
Your kids can borrow for college. You cannot borrow for retirement. So the right order is retirement → emergency fund → 529 — not the other way around. Here's how to do all three on a real-world budget.
Your priorities, in order
Review employer match and plan rules
An employer match adds to eligible contributions under the plan formula. Check vesting, taxes, fees and withdrawal restrictions before comparing it with a 529 or another goal.
Term life insurance, not whole life
20–30 year term policy at 10–15× income. Costs ~1/10th of whole life and covers exactly the years your kids are dependent. Buy young — rates skyrocket after 40.
Open a 529 — but only after retirement is on track
Tax-free growth, tax-free withdrawals for qualified education, often state-tax-deductible. SECURE Act 2.0 lets you roll up to $35K of unused funds into the beneficiary's Roth IRA — no waste.
Estate basics: will, beneficiaries, guardian
A will naming a guardian, beneficiaries on every account (especially 401(k) and life insurance), and a basic healthcare directive. $200–$500 with a lawyer or $50 with a service like Trust & Will.
Calculators built for this stage
Recommended reading
Frequently asked questions
Should I save for college or retirement first?
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Whole life insurance for the kids?
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