Don't Let Boomerang Kids Endanger Your Retirement
Parents will do pretty much anything for their children. But parents need to be careful when boomerang kids return home after college to live, especially if they are near retirement.
"If the parent rides to the rescue, there is a real possibility that they will impair their retirement," says Chris Chaney, vice president and financial consultant at Fort Pitt Capital Group in Pittsburgh. "You shouldn't anticipate a typical retirement. It will be a different kind of life."
Here's what parents can do to keep boomerang children from draining financial resources and endangering their retirement:
- Do a cost analysis.
- Set deadlines.
- Help with the transition to adulthood.
- Make them pay rent.
- Let your financial planner be the bad guy.
Rodney Brooks
An award-winning journalist, writer and author and my specialty is retirement planning and other personal finance issues. I have written for many national publications, including USA TODAY, The Washington Post, U.S. News & World Report, AARP and National Geographic. I am available to speak on personal finance, financial literacy and the racial wealth gap.
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The author tells the history of the Freedman’s Savings Bank, how it grew much too quickly, why it failed and the impact on Black America. The Freedman’s Bank offered a safe depository for formerly enslaved people, expanded quickly and gained millions in deposits – mostly ranging from $5 to $50. But inexperience and corruption doomed it to failure, costing may of the small depositors their savings.
