Re: college vs retirement

In article <[EMAIL PROTECTED]>,
 [EMAIL PROTECTED] (Robyn Kozierok) wrote:

> In article <[EMAIL PROTECTED]>, Richard  <[EMAIL PROTECTED]> wrote:
> >Robyn Kozierok <[EMAIL PROTECTED]> wrote:
> >: I believe it's usually possible to borrow from your retirement funds
> >: for education expenses, if necessary.
> >
> >Yes, it is, though I would consider that close to a last resort.  
> 
> I'm curious as to why you would consider it a last resort?
> 

Can't speak for Richard, but I'd consider it a last resort for the 
reasons previously mentioned--that you can always borrow for education, 
but you can't borrow for your living expenses in retirement.  

That said, if you put all your resources into retirement savings (up to 
whatever your contribution limits are, of course) with the express 
intention of taking them back out again for education if necessary, I 
don't see why that wouldn't work on some level.  That way, you've got 
the tax-free compounding and if another source of money crops up (say 
today's active toddler turns into an athletically inclined 18-year-old 
who gets a four-year free ride on the football team), you aren't stuck 
with a large amount of savings earmarked for education and nothing else.

We'll be old enough to be making withdrawals from our retirement fund by 
the time our daughter hits college age, so we've considered this 
possibility.   Here's a link that lays out the pros and cons:

http://www.finaid.org/savings/retirementplans.phtml

There's evidently a difference between withdrawing the money and 
borrowing the money.   Either way, the folks who put together this page 
also deem it a last resort.