Is Your Family Putting Your Retirement at Risk?
Oh, we do everything with love, for love ones!
A recent survey reports that today more than half of Canadians provide financial aid to their family members & young kids are above and beyond any help with college costs. Among the 45% of people provide financial help of an approx estimate of $10,000 to their family members, yet for this, they aren’t saving enough for their retirement and have unexpected debt. In one survey, people report that because of this so many of them possibly not able to afford the annual premium for a long-term care insurance policy to protect themselves and their family–in later years. You must be worried about your financial security if you are providing any sort of financial help to your family members and young children. It is time for a serious think of your retirement security while scaling back the financial support to others can give you the cash today to work on but we forget about the future.
Helping is one valuable thing if you are providing financial aid to elderly parents to meet their basic needs. We have to differentiate between a family member those are in need and others who can support themselves but not interested in struggling for their needs. Unlike elderly parents, sometimes adult children put your present and future in danger. As you may continue to pay for way too much by using the debit card and adding up all the charges for non-essential expenses to your account. For example, you agree to help your kid with a car loan, but instead of buying a 3-year-old used car that comes with a manufacturer’s warranty, your child shops for the expensive reliable car and you are subsidizing a $500 as a car payment. If any of that sounds remotely familiar, your retirement stuck in a dangerous position and your family put you in this serious condition.
Most of the time we fear saying no two grown kids will disappoint them and is a failure on your part. By keeping giving them financial support, they will not stand on their feet even if your grown kids can support themselves. If you want to land in retirement with solid financial shape, stand out against this fear of post-retirement. If continuing to provide financial assistance to your kids is making it the time your family putting your retirement at risk and with no doubt, your finances are out of shape–paying down your mortgage, eliminating credit card debt, and saving more for retirement. We have to plan because your adult kids will probably step into bigger challenges that they need to face them their own. It’s not bad to provide financial assistance to your kids, but if you help today, it can be more hurt you tomorrow. To secure the future of all, it’s rational to stand in support with them, it can also be the catalyst to make them responsible for taking care of their problems.
