Page 2 - Van Wig & Associates Newsletter, Lakewood Edge ~ February 2020 Issue

starting out
YOUR MONEY

HELPING ADULT CHILDREN FINANCIALLY:

LEARN TO SAY NO

by Carla Fried an annualized 5%. That would add
“If you have even the $100,000 to your retirement kitty.
etween high rents, student
loan debt and meager wage SET LIMITS ON WHAT
B growth, it’s hardly surprising tiniest worries about YOU WILL HELP WITH
that young adults increasingly lean Helping an adult child get
LAKEWOOD on parents for financial support. A retirement security, you established is one thing, but often
help can extend into bankrolling a
Pew Research survey reports that
REAL ESTATE EDGE the majority of us think it would nicer-than-needed lifestyle. Money for
be grand for an adult child to be groceries so they don’t exist on a
Publisher financially independent by age 22. owe it to your entire ramen diet or helping make rent on a
Allison Van Wig But Pew’s analysis of government shared apartment are reasonable assists.
CA DRE #00985700
data estimates that fewer than one Cosigning a loan for a new car (which
in four grown kids are hitting that family to consider should be a used car), or contributing
milestone these days, compared to to rent for their own place (rather than
Need proof that most of us recalibrating your support.”
one in three in 1980. shared) is you not setting smart limits.
consider our kids special? In the HANDS OFF YOUR SAVINGS
4435 E Village Rd Pew research, nearly two in three In the Merrill Lynch study, more
Long Beach, CA 90808 parents said that parents with adult your later years. That’s surely not an plan, and if you’re still covering them than eight in 10 parents with adult
kids between the ages of 18 and 29 outcome the entire family wants. on your health insurance, consider children said they are willing to make a
562-882-1581 generally are doing too much for The decision to provide financial having them contribute to your major financial sacrifice for their adult
Allison@superbroker.com those kids. Yet fewer than 30% agree support for an adult child is, of course, monthly premium. That’s not harsh. kids. If you want to trim your lifestyle
www.SuperBroker.com that they themselves do too much for personal. That said, if you have even It’s building adulting muscles. to come up with the extra cash to
their adult children. the tiniest worries about retirement Are you thinking, geez, trimming help—downsizing your house, driving
When the help is financial, we’re security, you owe it to your entire your support isn’t going to make the car more years before trading
not talking pocket change. A survey family to consider recalibrating your a difference in your financial life? in—that’s a responsible tradeoff to
last year by Merrill Lynch and Age support. Not overnight, but by setting That’s a cop-out. consider, and one that 40% of survey
Wave estimated that the $500 billion a timeline expectation for when your Right now you may be helping with respondents mentioned. But half of
in annual financial help that parents child will be independent. Nearly half rent, but it becomes the mortgage, or parents also said they would consider
give adult children is double what of parents in the Merrill Lynch and childcare for the grandkids. Without a raiding a savings account, and one-
those same parents manage to save Age Wave survey said they wished conscious game plan, there will always quarter said they are willing to pull
for retirement. Nearly three in four they had established clearer financial be opportunities to contribute, and money from their retirement accounts.
6425 Busch Blvd., parents reported they put their adult boundaries. Here’s how to achieve you will always default toward giving. What’s more, one-quarter said they
Columbus, OH 43229
877.872.3080 kids’ needs ahead of retirement. that: The parental instinct to provide would take on debt to help their adult
www.DiscoverPubs.com Parents who make that choice doesn’t magically click off at 22 or 25. kids. That’s where your helping puts
could be setting everyone up for a ADULT KIDS CONTRIBUTE TO Yet if you have even the slightest your family at greater financial risk. If
Sudoku, Scrabble, Crossword
and articles distributed by difficult future. The less you have FAMILY EXPENSES concern about your retirement you don’t have the savings to take care
Tribune News Services and saved for retirement, the more Once an adult child has a job, security, those are dollars you need to of yourself, who will? The kids. n
Brandpoint where noted. likely you will feel money-stressed even if they are still living at home, it’s seriously reallocate to your 401(k) or
© Copyright 2020 by
Discover Publications, Inc. in retirement—that’s not the goal, time to have them participate in bill IRA. For instance, let’s say you trim ©2020 Rate.com News
All rights reserved. right?—and you may end up needing paying. At a minimum, they should your support by $250 a month. And Distributed by Tribune Content
to rely on your kids for help in pay their share of a family cellphone that gets invested for 20 years earning Agency, LLC.
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