Page 25 - aruba-today-20190426

BUSINESS Friday 26 april 2019
A25

Millennial Money: Are you robbing the Bank of Mom and Dad?

By MELISSA LAMBARENA what account the money
NerdWallet is coming from and when,
Associated Press additional taxes and pen-
When Melanie Lockert alties may apply.
graduated with a mas- — Outline expectations.
ter’s in performance stud- Will you be financially re-
ies in 2011, she was over- sponsible for your parents
whelmed with student in their later years? If so,
loans. Her many attempts consider those future costs.
to tap the Bank of Mom For example, a 65-year-old
and Dad had failed. couple who retired in 2018
She had already worked would need to have saved
three jobs to pay off $280,000 to cover health
$13,000. After juggling mul- and medical expenses
tiple jobs, relocating from throughout retirement, ac-
New York to Portland, Ore- cording to a Fidelity esti-
gon, and trimming expens- mate . Mom and Dad may
es, she paid off the remain- be able to help you out
ing $68,000 in 2015. Now today, but at what cost for
34, she acknowledges that tomorrow?
tackling it herself may have — Weigh the family dynam-
been for the best. ic. If they give you money,
“If my parents had agreed your parents could also feel
to fund my education, I In this March 14, 2019, file photo, people walk on the Stanford University campus in Santa Clara, pressured to help your sib-
think it would have kind Calif. lings and further hurt their
of been at the expense of Associated Press retirement savings. And if
their own retirement,” says egg is key. more financial problems ners generally recommend they only help you, it could
Lockert, a writer and found- “Expectations I don’t think than it solves. saving enough to replace lead to jealousy or hurt feel-
er of the Dear Debt blog. are set properly for how WHAT TO CONSIDER BEFORE about 70% of pre-retire- ings. — Make sure you truly
Indeed, plenty of parents long people are going to TAKING A GIFT ment income. Castelli sug- need the help. As she was
may already be behind live, so I think most families A gift from your parents gests that it depends on paying down debt, Lock-
on that count. Forty-five are going to need every could jeopardize their po- your parents’ goals. Find ert says her work ethic and
percent of baby boom- penny (for retirement),” tential retirement earnings, out where Mom and Dad creativity were pushed to
ers have nothing saved says Justin Castelli, CEO but it could eventually cost stand. If they aren’t sure, a the limit, forcing her to think
for retirement, according and financial advisor at RLS you, too, if you’re their fi- fee-only financial advisor differently about money. “I
to a 2019 study by the In- Wealth Management in nancial Plan B for their can offer a clearer picture. felt more confident paying
sured Retirement Institute, Fishers, Indiana. golden years. Before ac- — Understand the costs. large bills,” she said. If you
a financial services trade If your parents aren’t on cepting, take these steps: Parents will be required to can budget, save and take
group. And with average track for retirement, ac- — Have a money talk. To file a gift tax return for any advantage of alternative
U.S. life expectancy now at cepting a monetary gift preserve quality of life in amount above $15,000 per resources, you might tackle
about 78 years old, a nest from them can create retirement, financial plan- parent. And depending on financial goals yourself.q

US durable goods orders up solid 2.7% in March

By MARTIN CRUTSINGER GDP expanded at an an- over, which occur at differ-
Associated Press nual rate of close to 3% in ent times each year. q
WASHINGTON (AP) — Or- the first three months of the
ders to U.S. factories for year, up a full percentage
big-ticket manufactured point from their previous es-
goods rose 2.7% in March timates. Several economic
with a key category that reports in recent weeks
tracks business investment have shown new-found
decisions rising at the stron- strength.
gest pace in eight months. A separate report Thursday
The increase in orders for showed that the number
durable goods followed a of Americans filing appli-
1.1% drop in orders in Feb- cations for unemployment
ruary, the Commerce De- benefits, a proxy for lay-
partment reported Thurs- offs, jumped 37,000 to a
day. still-low 230,000 last week.
Both months were influ- Claims had declined for
enced by a swing in the In this Tuesday, April 23, 2019 photo, clothes washers and dryers five straight weeks, falling
volatile category of com- are shown for sale at a Home Depot store in Miami Lakes, Fla. to a near 50-year low of
mercial aircraft, which had Associated Press 193,000 the week of April
fallen sharply in February March, the best showing measured by the gross do- 13. Analysts attributed last
and rebounded in March. since a 1.5% increase last mestic product, on Friday. week’s big jump in benefit
The closely watched cate- July. Economists have been applications to trouble sea-
gory that serves as a proxy The government will pro- upgrading their estimates sonally adjusting the num-
for business investment vide its first look at over- for first quarter growth with bers around spring holidays
saw a 1.3% rise in orders in all economic growth, as many now thinking the such as Easter and Pass-