January/February 2026 HAWAII PARENT 143 loans for their child’s education. However, it is important to understand terms, interest rates, and the risks. Avoid Sacrificing Retirement Savings to Fund College Putting your child’s well-being above your own is a noble action. However, in leveraging retirement savings, the benefits of compound interest on investments for retirement are lost, and there could be tax penalties. Additionally, you cannot borrow or take out a loan for retirement. Plan Perhaps most importantly, before you take action and decide how much you’re going to contribute toward your child’s college education, talk with a financial advisor to build a financial plan to pay for college alongside your need to save for retirement and plan for other lifetime wants and needs. Planning for the rising cost of college is much easier when it is done with a professional and is a family affair. Daniel Shiu is a Financial Advisor with UBS Financial Services Inc., a subsidiary of UBS Group AG (Member FINRA/SIPC) in Honolulu. This article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. The strategies and/or investments referenced may not be suitable for all investors, as the appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Investing involves risks and potential of losing money. The views expressed herein are those of the author and may not reflect views of UBS Financial Services Inc. For designation disclosures, visit www.ubs.com. UBS Financial Services Inc. is not affiliated with any third-party entities mentioned. Review the client relationship summary at ubs.com/relationshipsummary or ask your UBS Financial Advisor for a copy.
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