Prepare Your Kids for Financial Independence
Your children turned to you for support all their lives. When they were babies, you provided them with food and shelter, and throughout their childhood, you guided them and led by example. But if you’ve continued to provide them with financial support into their adulthood, the lifestyle shift that comes with your retirement might come as a surprise to both of you. If your children are still dependent on you for financial support, it’s important to have a conversation about what might change with your retirement. It’s time to consider how your well-intentioned support will affect both of your futures. CONSIDER THE COSTS A study by Merrill Lynch and Age Wave found that, on average, parents over 50 gave their children a total of $6,500 a year. When you compare that 6K to your current income, it might not look like much, but consider what that amount could do if you invested it into your retirement.
Diane Harris, a personal finance journalist, explains, “If, instead, you saved that much cash every year in a tax-deferred account averaging 6 percent annual gains, you’d have close to $100,000 more for retirement within a decade.”
transparent. Let them know that this isn’t about your feelings for them and give them time to process the information. Remember that even if your retirement has been top of mind for you, it may not be on their radar. Erin Lowry, author of “Broke Millennial,” reminds us, “Adult children can’t be expected to know how ongoing support is affecting your finances if you haven’t talked to them about it.” If you can help them understand how the change will impact them and maybe even help them plan for it, you can open up that conversation and reduce tension around it. Instead of looking at the end of financial support as a loss, frame it as an opportunity. It’s an opportunity for your child to find financial independence, and while the journey can be rough, it will benefit everyone in the long term.
MAKE A PLAN Once you consider what you’re
contributing to your child’s lifestyle, you need to find out how it’s going to affect your ability to retire. It’s time to have the tough conversations. Before you talk to your kids, meet with your financial advisor and discuss your retirement goals. Your advisor can give you a reality check if your goals are not in line with your current lifestyle and tell you what needs to change to get them there. THE TALK After your meeting with your advisor, it’s time to talk with your children. Explain how your retirement plan is going to affect them. It’s best to be honest and
Train Your
BRAIN!
COLCANNON When you think of St. Patrick’s Day cuisine, corned beef and green beer are probably the first things that come to mind. This year, consider adding colcannon to your March 17 menu. It’s basically mashed potatoes on steroids, and it’s utterly delicious.
[Inspired by foodnetwork.com]
INGREDIENTS
• 1 pound cooked bacon, chopped into small pieces • 4 scallions, finely chopped • Parsley, for garnish • Salt and pepper, to taste
• 3 pounds potatoes • 2 sticks butter • 1 1/4 cups hot milk • 1 head cabbage, cored and shredded
DIRECTIONS
1. Steam potatoes for 30 minutes. Peel skins and mash flesh thoroughly. 2. Chop 1 stick of butter into small cubes and add to warm potatoes. Once melted, slowly add milk, stirring constantly. 3. Boil cabbage in water. Add 2 tablespoons of butter to tenderize. 4. Add cabbage, bacon, and scallions to mashed potatoes, gently stirring to combine. 5. Serve garnished with parsley and a pat of butter.
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