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Is Covid – 19 causing financial stress between you and your adult children?

Financial Wellness Series: Lending Money to Adult Children

Before Covid-19, many parents in their 60s were looking forward to their first years of retirement – maybe do some travelling, renovate the house, or spend more time at the cottage. Then the pandemic hit.

With adult children losing their incomes due to lockdowns and others desperate to buy a house before being priced beyond their reach, parents have found themselves in the uncertain position of wanting to help their adult children financially but unsure if they can afford to.

“While you may be more than willing to divert some of your income or savings to support your adult children, is it realistic without permanently damaging your own retirement plans?”

It is important for parents to recognize when they shouldn’t jeopardize their own financial plans to help out their children. Older parents don’t have 20 or 30 years to recover from a financial hit, like their kids do, so it is critical for them to take care of themselves first.

At Stonebrooke Private Wealth Management, we play a key role in helping parents make financial decisions by providing objective advice and perspective.

The importance of a financial plan has never been more obvious than in the past year. Now is an ideal time to review your plan to ensure you can still meet your financial goals, especially if you are considering giving or lending money to your children.

Another way to help is to encourage your children to meet with a financial advisor who will guide them in the creation of their own financial plan and help them stay on track by offering direction and encouragement.

We’re here to help. Let’s start a conversation@StonebrookePWM.ca

This article is provided for information purposes only. Although the content is believed to be reliable when posted, Stonebrooke Private Wealth Management Ltd. cannot guarantee this information is current, accurate or complete and does not assume any liability. The information is not intended to provide any insurance, financial, legal, accounting or taxation advice and should not under any circumstances be relied upon without consultation about your specific situation. The information is subject to modification and updating from time to time without notice.

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