With student-loan debt at an all-time high, many parents are rushing to help foot the bill. But should they?
This question has been trending lately, and for good reason. Parents who help kids pay for college — but do so to the detriment of their retirement savings — may wind up trading one financial problem (their children's debt) for another (they may never retire).
A couple I met with recently provided the perfect example of how this happens. Ted and Linda were well into their 60s, lacking adequate retirement funds and wondering what to do next. They had refinanced their home four times and still owed about a quarter of its value, they said. They weren't sure they could afford to stay there, yet they would need to invest some money into remodeling if they hoped to sell.