Taking Social Security, Paying Student Debt: Financial Planners Weigh In

Ross Levine, founder of Accredited Investors in Edina, Minnesota, studied Ms. Keyser’s question. Mr. Levine said the Keyser family is on track with their current plan, one they created mostly on their own, especially given the pressure parents of college students face juggling their needs and their children’s.

“I want to stress how troubling it is trying to balance trying to put your kids through college and saving for retirement,” Mr. Levine said. “It is not a good idea to put your financial security at risk.”

As Mrs. Keyser noted with the needs of her parents and in-laws, Mr. Levine also saw that many people underestimate the assets they would need should they become incapacitated.

“We notice with our clients that one of the things that creates the most financial stress is caring for your aging parents,” said Mr. Levine, adding that he encourages clients to put their retirement first, because their financial stability as they get older is a gift to their children.

He said, “You can borrow for education, but you cannot borrow for retirement.”

So, Levine says, if a couple can continue to fund their 403(b), they should, and they should feel good about that choice. He said he would direct them towards taking their children a study loan, as that would maintain the couple’s financial flexibility. They can always help pay off the loans, if they so choose.

“They’re unnecessarily hard on themselves,” Mr. Levine said, because annuities help create a steady stream of income, which is one of the most challenging aspects of retirement. They’ve been really thoughtful — they have pensions, they have 529 plans, they have personal investments. They do everything right. My advice is to actually celebrate the choices they’ve made.”