What to do as retirement nears
Cut off the kids
Financial experts aren’t suggesting you kick your young or teenage children out on the street.
But a recent study by the Pew Research Center found that 27% of all adults ages 40 to 59 are the primary source of financial support for a grown child.
Unless you’re very wealthy, that’s a monthly expense you shouldn’t be paying when retired.
“If it’s some dire emergency, I understand,” says Cathy Pareto, a certified financial planner in Coral Gables, Fla. “But when mom and dad aren’t bringing in their own money anymore, they really can’t afford to have the kids on the payroll, so to speak.”
We all want to help our children, but the years before retirement are ones when it’s important to focus on getting your own financial house in order. Your children need to understand and step out on their own.
After all, the sooner they become financially independent, the better it is for their own long-term financial health.