Are Your Children Living At Home?
Are your kids still living at home as adults? If so, it can put a serious strain on your retirement plans. I’m by no means saying to kick them out of the house to save money, more like, be careful. Here an article from investment news that you should read if you fall into this category.
Economist Barry Bosworth was surprised to realize how much he and his wife still spend on their two adult sons, long after they put them through college.
Although the expenditures are mostly a lot of little things that add up each month, the couple also helped their sons buy homes and cars after they had secured doctorates but were earning low salaries in the early days of their careers.
“Children are still our largest expense, well after they leave home,” said Mr. Bosworth, a senior economics fellow at The Brookings Institution.
The amount that Americans spend on their adult children during years when they should be concentrating on saving for their own retirement worries some financial professionals.
Many parents can’t see how paying down their children’s debt or making mortgage payments for them could be hurting their own future, advisers said.
“Taking care of your adult children is one of those things that you don’t expense for,” said Steve Hamant, a financial adviser affiliated with LPL Financial LLC. “I have to make sure that clients understand that money that’s flowing out at this point will reduce their retirement.”
more of the article HERE