Getting organized and coordinating your financial affairs is one of the most important things you can do to secure your financial future. Let me tell you a story about a couple—Stephanie and Tom—in their late 50s who have two children in college (a common situation, since many people are having children a little later in life). In this case, the couple has to address both college funding and retirement planning issues. From a planning perspective, it can be difficult to manage both at the same time, as this couple had discovered.

Pay for College or Save for Retirement?

Stephanie and Tom's biggest issue was that the husband hoped to retire in the next three to five years. The market hadn't been cooperating, however, and the husband was no longer sure that would be possible. He'd lost a lot of money in the market and a lot of faith in his financial advisor.

The second issue for the couple was that they were drawing on their retirement nest egg to pay for the kids' college expenses. If they continued along this path, they could potentially bankrupt their retirement by putting their kids through college.

In addition, the couple was unsure about how much life insurance they should own and how to pay for it. Plus, they kept getting invitations to buy long-term care insurance, which they weren't sure they really needed. Finally, the couple had too many advisors: two different brokers, two different insurance agents, an accountant and several friends who were all providing "guidance." They were totally confused and unsure of where to go next.

Steps to Success

When I met with the couple, the first thing that we did was create the foundation for the Retirement Roadmap. To do this, I asked some basic questions: What were their goals, what was important to them, and how would they like to prioritize all of the issues facing them? After we took some time to develop their roadmap, the solutions to their problems became much clearer.

Next, we created a portfolio for the husband that fit his needs. Because he had lost faith and trust in the person who was giving him financial advice, his broker, he had taken over control of the investment portfolio without really knowing what to do. We worked together to create an investment plan that would work for him.

Third, we addressed how to pay for the college expenses. The couple was fortunate to have significant equity in their house, and they agreed it was better to pay a portion of the college expenses through the tax-deductible expense of a mortgage. We also gave them guidance about how to explain to their children that their financial situation had changed. The kids stepped up and agreed to shoulder a portion of the college expenses.

We also determined that the couple didn't have enough life insurance coverage. We helped them understand how to put together an appropriate life insurance portfolio and protect themselves from the unexpected. We also gave them tips on how to talk to their life insurance agent and obtain the right amount of insurance.

Finally, we considered long-term care insurance. While long-term care insurance can be an excellent choice in the right scenario, the timing wasn't right for this couple. Together, we decided to put long-term-care insurance on the back burner, with the intention of evaluating the issue again when the kids were out of college. Their budget was simply too tight to buy long-term care insurance at this time.

The Perks of Working with a Financial Advisor

The final thing this couple needed was a "go to" trusted financial advisor who could coordinate all of the issues and find the correct solutions for them. This couple had too many voices saying too many different things. That created a tremendous amount of confusion and anxiety. When they chose to work with us, they were able to understand exactly what they needed to do and how to get there. Simplifying the decision-making process helped them to get back on track toward achieving a successful retirement.

About Mark Singer

Mark Singer is a CERTIFIED FINANCIAL PLANNER™ professional and the author of The Changing Landscape of Retirement—What You Don't Know Could Hurt You. He has been The Retirement Guide to thousands of investors for close to 25 years and is the creator of the Retirement Roadmap, which contributes to a solution to investors' greatest concerns–properly coordinating their financial affairs. These systems have become a primary resource for the people who have worked with Mark over the years. You can download the first chapter of Mark's new book for free by Liking it on Facebook.