By Robyn A. Friedman
City & Shore PRIME
Ah, the joys of being an empty-nester. Peace, freedom and extra cash to sock away for retirement. Then your daughter gets divorced, or your son loses his job, and suddenly those empty bedrooms are occupied again.
You’re not alone. According to the National Association of Home Builders, more than 20 percent of young adults ages 25 to 34 lived with their parents in 2014, a sharp increase from 2000, when less than 12 percent lived with mom and dad.
So how do you handle the added expenses of so-called boomerang kids when your retirement is looming?
Look out for number one
“While a parent’s instinct may be to put their children first, couples who find themselves financially responsible for their adult children should try to prioritize their own financial goals,” says Wendy Liebowitz, a certified financial planner with Fidelity Investments in Fort Lauderdale.
Talk it out
“Discuss what realistically can – and should – be paid for by each party,” Liebowitz says. “While it may be tempting to assume full financial responsibility for your child, it can be detrimental to both your savings and their financial health.”
“It’s important that kids have some skin in the game in order to not get too complacent,” says Michael Silver, a certified financial planner with Baron Silver Stevens Financial Advisors in Boca Raton. Your goal: to motivate your kids without enabling them.
Secure your nest egg
“Be mindful that pulling assets from retirement accounts or other investments could drastically impact your financial security,” says Dennis Coral, a private financial adviser with SunTrust Investment Services in Fort Lauderdale.
Expect the unexpected
When saving for retirement, plan for life’s little surprises – medical expenses, living longer than you expected and, now, supporting your adult children.