However, without early and clearly foresighted planning, acting as the “Bank of Mom and Dad” may ultimately prove a false economy by undermining the financial security of your retirement while also limiting your ability to effectively plan a financial legacy for your passing.
Plan Early to Enjoy Your Retirement
If you want to be in a position to help your children with their education fees, housing costs and other significant capital outlays, you need to factor this into your retirement planning strategy.
As a general rule, the sooner you begin saving, the greater the possibility of your enjoying significant wealth in the long-term, particularly once you factor in the benefits of compound gains (the interest you earn on your interest).
By taking prudent steps to account for the future financial needs of your offspring you can help support them as they move into adulthood, while also giving yourself the best possible chance of enjoying financial freedom in your retirement.
Seventeen percent of the couples who took part in the Bankrate.com survey said that the financial help they offered their children had resulted in significant sacrifice of their retirement plans; a further 34 percent said their help had come as “somewhat” of a sacrifice. However, by taking action now, you may be able to plan effectively so that you can get the balance right.
Plan your retirement with help from Blacktower in the US
Blacktower in the US can help you plan for your retirement in a way that accounts for all of your goals, including Bank of Mom and Dad assistance to your offspring and legacy plans for your passing.
For more information about how we may be able to help you – as well as any cross-border wealth management concerns you might have – contact us today.
*https://www.bankrate.com/personal-finance/financial-independence-survey-april-2019/ – Accessed 24-04-19
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.