College graduates are leaving school with record amounts of student loans. If you have young children, can you help them avoid a heavy college debt load in the future?

You might want to invest in a tax-advantaged college savings account, such as a 529 plan or a Coverdell Education Savings Account. You might also want to consider a custodial account, known as UTMA or UGMA.

Understandably, you’re not saving for education in isolation – you likely have many goals you’re trying to achieve, including retirement. But by starting to save and invest early, you can put time on your side — so you won’t have to delay saving for one goal in favor of another.

Clearly, saving for college while simultaneously building resources for retirement is something of a “balancing act.” And, because everyone’s situation is different, there’s no one right answer for everyone. So take the time to find the solution that works for you.

Lower Debt Levels Means Greater Investment Opportunities

In the past few years, Americans have done a pretty good job of whittling down their debt loads. If you’re in this group, how can you use the money you’re saving?

For starters, try to boost your contributions to your 401(k) and your IRA. Both accounts offer tax advantages and an array of investment options.

Also, start building an emergency fund containing six to twelve months’ worth of living expenses. And if you have children or grandchildren, you might consider contributing to a 529 plan, which can help build resources for college.

It’s also a good idea to address any gaps in your overall financial strategy. For example, do you have adequate life insurance and disability income insurance?

Reducing your debts can relieve some stress in your life. And you can gain even more benefits from debt reduction by putting your savings to work to help reach your financial goals.

Contact Wendell at Edward Jones www.edwardjones.com.