According to two articles in Barron’s (May 25, 2019) – The Parent Trap (lead article)* and When To Bankroll Your Kids –by Sarah Max… the trend has become for parents to assist their adult kids with financial support – giving help to purchase homes; bankroll education; providing free room and board; vacations; and other big ticket items.
In some cases this help is given at the detriment of parents’ retirement savings. “The biggest implication, no doubt, is when parents jeopardize their own financial security for the sake of their offspring”.
According to the article by Sarah Max – “U.S. Parents now spend $500 billion a year on their 18 to 34 year old children.”
Reshma Kapadia notes: “Parents have long tried to set their children up for success, but today that assistance is costing more, and lasting longer.”
Both articles are a must- read for parents who want to provide financial help, while at the same time managing their retirement goals wisely.
“It’s an old saw in the financial planning industry that you can borrow to pay for college, but not to fund your retirement.”*
*article The Parent Trap by Reshma Kapadia
Working To Preserve Your Wealth and Protect Your Future…in a Constantly Changing World
Please read my full Disclaimer and How I Can Help You
Visit my website: www.attorneybarbaradalvano.weebly.com for over 300 articles; free webinar information and printable infographics