M . It ls Possible To Save For Retirement AND College At The Same Time (NAPSA)—When weighing the importance of saving for a child’s education versus your ownretirement, it’s often impossible to say which is more crucial. And though a child’s education maybecloser, the cost is small compared to the potential of 20 or more years of living expenses neededin retirement. That is why people need to save for both—at the sametime. Saving for two significant financial goals at the same time may seem overwhelming. However, saving a little bit now toward both goals means you can actually put aside less than if you wait a few years. Once you make annual return of six percent, by the time their son is 18, he will ply let the power of compounding workfor you. have $12,283 in his college fund. And when the Johnsonsretire at age 65, they will have $46,204 in and Melissa Gardner have a daughter. That year they open Johnsons are putting twice the amount of money aside each account and begin making monthly deposits of $50 into each. much moneyas the Gardners. Though it sounds daunting, the commitment to save, you sim- For example, at age 35, John both a college and retirement Assuming a hypothetical annual return of six percent, by the time their daughteris 18, the Gardners will have $19,368 in her college savings account. By the time they are 65, they will have $50,226 in their retirement savings account. By comparison, the Johnsons wait until their son is 10 before they begin saving for his college education or their own retirement. At that time, they are 45 and put $100 a month into each account. Again, assuming a hypothetical their nest egg. Even though the month,theystill will not have as with time on yourside, it is possi- ble to save for both your children’s education and your retirement. The keyis that the sooner you can start saving, the less money you will need to invest and the more money you will have in the end. Remember, every little bit counts. So start today! Allstate has a Web site where you can find general information on individual retirement solutions and college savings. Log on to www.allstate.com.
