GOLDEN VALLEY, Minn. - Good news for kids and possibly bad news for parents. A recent survey by Ameriprise found that an overwhelming majority of parents have helped their adult kids financially. Dan Ament, Financial Advisor with Morgan Stanley Smith Barneydiscussed on KARE11 Sunrise considerations before you open the bank of mom and dad.
More than nine out of 10 baby boomers say they have provided financial support to their adult children.
Buying a car - 58% of men and 48% of women helped a child buy automobile
Co-signing - 42% of men and 32% of women co-signed a loan or lease. Co-signing comes with great risk; understand it before you sign it. You are being asked to guarantee a debt or obligation. If your child misses payments you may be on the hook for the balance. Moreover, your credit could become impaired.
Your kids vs. your retirement -Try not to support yourgrown children,at the expense of your own financial future. Your kids have many years ahead of them. You on the other hand have a limited window of time to accumulate a retirement portfolio that is sufficient to support you in your golden years.
Understand what it takes to retire -Figure out how much money it is going to take for you to retire. Quit guessing about your retirement needs and do the calculation. If you can determine how much you need to put away each year to retire comfortably, then you can figure out what you will have left over in your budget for your kids.