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.