A lot of things in retirement are beyond your control. You can’t control what will happen with interest rates or the financial markets. You can’t control your health and what kind of care you may need in retirement. You can’t even control how long your retirement will last.
However, you might be under the assumption that you can at least control when your retirement starts. After all, you get to decide when you retire. If you feel you can afford to retire early, you have the right to do so. Similarly, if you need to catch up on your retirement savings, you have the option to push back your retirement date.
Are you helping your adult child by making some or all of their student loan payments? Or did you even take out student loans yourself to pay for their education? You’re not alone.
According to estimates from the Government Accountability Office, as of 2015 there were 2 million holders of Direct Plus Loans from age of 50 to 64. There were an additional 200,000 Direct Plus Loan holders over the age of 65. Those numbers have more than doubled since 2005.1
Direct Plus Loans are a type of loan that a parent can take out to pay for a child’s education. Parents often choose to take these types of loans because they think they’re in a better position than the child to make the payments, or because they don’t want to see their child start their adult life in a challenged debt position.
Principal of BAM Advisory Group