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Parents · Audience hub

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

  1. Capture employer match before anything else

    A 401(k) match is a 50–100% instant return. No college savings vehicle competes. If you're not getting the full match because you're funding a 529, you're losing money.

  2. 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.

  3. 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.

  4. 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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Retirement, almost always. Your kid can borrow for college, get scholarships, attend a cheaper school, or work. You cannot borrow for retirement. Capture employer match → max Roth IRA → then start 529.

Whole life insurance for the kids?

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No. The pitch is that it "locks in low rates" — but kids rarely die, premiums are high, returns are mediocre. Buy term life on yourself instead. Insurance is income-replacement, not investment.
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