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Managing the Shortfall

The problem the Glovers will have is one many other families will face as well: They simply don't have enough money to meet their needs without losing balance in their overall retirement plan. Under their current investment strategy, the college education alone will wipe out their liquid assets, leaving them with their retirement plans and their home as their key assets. As I said earlier, one of the key benefits of GORP is that it isolates the real problem the minute you start to match assets to goals. The Glovers have to decide how they will solve the problem. They can get part of the way there with their current investments, but they will need to save more to comfortably achieve their goal. Another option would be for Greg and Connie to explain to the kids that they simply can't afford to fund a private school education and they both have to go to public schools.

Common Mistakes

Are you carrying credit card debt? If you are, you are inevitably paying far too much in interest that cannot be deducted on your taxes.



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