Boomerang Children Part 2: 3 Ways To Launch Your Adult Child

As mentioned in part 1 of this post, adult children move back home with their parents for a number of different reasons including recently graduating from college or losing a job.  A few times a week I hear from clients seeking guidance on how to encourage their adult child who has moved back home to live independently again.  In part 2 of this post, we will look at three practical ways to launch your adult child.

Boomerang Children and Retirement Savings

Do you currently have an adult child living at home?  Maybe your child just graduated and is weighed down by college loans, or maybe your child just lost his/her job and needs some help figuring out what’s next.  Adult children return home for a number of different reasons and, for the most part, parents want to help.  While it’s very common for parents to help their adult children financially, there’s one question they must consider: How will this support affect my retirement savings?  Without proper planning and open communication, financial support of a boomerang child could quickly drain your retirement fund. 

Put and Take vs. Put and Keep Part 2: Put and Take Accounts

Are your retirement savings going to a put and take account?

At Kemp & Associates we often meet people who like to share how they’ve saved so much towards their retirement savings account¹. A recent client told us how they saved at least $1,000 a month and had been doing so for five years successfully. I did the math quickly and determined that they should have saved $60,000. When I asked where the $60,000 was currently being held, they responded somewhat sheepishly that they only had about $4,000. I questioned them politely as to how they were able to save $60,000 but only had $4,000 and they explained that they were going in and using it for different impulse purchases and bills.

This type of retirement saving isn’t truly saving. Instead, it is a form of “put and take” or, a more modern version, would be called a “delayed spending account.”