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You can’t base your life on other people’s expectations.

Stevie Wonder

For Parents :Planning Your Future

Should the air pressure in a plane drop, making it difficult to breath, airline staff instruct you to place an oxygen mask around your own nose and mouth before you do the same for your child? That is, care for yourself first so you can care for your child.

The same concept holds true when it comes to your financial future—plan for yourself first so you can plan for your child.

Through saving in special accounts designed to provide income during your retirement years and tending to some legal matters, you can create your own income stream during retirement, and then later, for your child.

Borrowing against the Future

In some cases, you can use your retirement savings as a safety net for present financial needs. Certain conditions apply, but if necessary, you may be able to borrow money from certain retirement accounts. Some types of accounts allow you to borrow or withdraw money for medical purposes.

But borrow very cautiously, for two reasons.

  1. You must pay borrowed money back. If you don’t, you pay heavy fees and income tax on the borrowed money.
  2. Not paying borrowed money back can seriously jeopardize your retirement income.

Before you borrow from any retirement account, be sure you understand what fees you’ll incur, if any, and the consequences, in dollar amounts, for not paying borrowed money back: fees, taxes, and lost retirement income.


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