Retirement Traps to Avoid – The Bank of Mom & Dad

Posted by on Jul 11, 2017 in Certified Financial Planner Boise ID, Certified Senior Advisor Boise ID, Financial Advisor Boise ID, Financial Planner Boise ID, Financial Planners Boise ID, Financial Planning Consultant Boise ID, Financial Services Advisors Boise ID | Comments Off on Retirement Traps to Avoid – The Bank of Mom & Dad

Be careful of helping your kids, you may jeopardize your own retirement security. A 2015 Pew Research Center survey found that 61% of Americans with adult children helped their kids financially in the past 12 months.

Be careful that helping a child through a rough patch doesn’t become an annuity. The best gift you can give an adult child is the financial skills to be independent. Check out Dave Ramsey materials and his Financial Peace University. Or the book “How to be a Financial Grown Up” by Bobbi Rebell.

The adult child needs to learn financial responsibility while you are alive. When you die, the safety net is gone. They may receive an inheritance, but if they have a leaky bucket, it won’t last. Studies have shown inheritances, regardless of the size, being gone in less than 3 years.

You need to set boundaries with your children. Determine how long you will help and under what circumstances. Many times, after the loss of the patriarch, mom is left to contend with the children.

Mom, can find an ally in the accountant or financial advisor. These professionals can affirm the boundaries and be the “bad guy” for mom.

Another gift you can give your children – never need their financial help. Safeguard your retirement assets so you won’t need to depend on them.