Good financial planning is not intuitive. What sounds efficient often is not. Here is an example of something that may result in negative effects on both college and retirement planning.

Intuition (and advice from your parents, friends, neighbors and colleagues) says that if you can reduce your long term debt by refinancing your mortgage at a lower rate and paying it off in 15 years instead of 30, then do it. By the time your children are ready for college, you’ll have paid off your mortgage and you can start paying for college. Right? Maybe, maybe not.

The difference can mean tens of thousands of dollars.

In many cases, Sage’s advice is to refinance at the lower rate, but do it for 30 years. Take the extra monthly savings and invest it in a 529 college savings plan. As your annual income increases, consider increasing the amount of your 529 investment.

Thinking about buying a new car? Have enough money in savings to pay for it? Intuition might tell you to take the money out of savings to avoid taking out a loan and making those monthly car payments. Think again. Sage’s advice is to look for more options. A greater number of options to choose from will substantially increase the effectiveness of the plan. Informed decisions are usually better decisions.

Be on guard for “Identity Theft.” Protect yourself and your assets. Do not share your date of birth, social security number, credit card numbers, etc., with others, especially with telephone solicitors.