Ask The Hammer – Supporting Family During Retirement

Key Takeaways

• Remember that there are no loans for retirement—if you don't have money for your bills, you cannot borrow it like you can for other needs, making your retirement security non-negotiable
• Distinguish between sacrificing wants (vacations, dining out) versus needs (housing, food); it's reasonable to reduce wants to help children, but sacrificing needs creates long-term family stress and may burden your adult child into supporting you later
• If you jeopardize your retirement, your adult child will likely feel obligated to support you eventually, creating resentment and undue burden—this doesn't actually help either of you
• Create a pros-and-cons grid for your decision and seek advice from a trusted financial advisor or competent friend; most people avoid money conversations when struggling, which leads to poor decisions made in isolation
• Ask yourself: 'Will helping my child mean I cannot afford basic necessities or just lifestyle luxuries?' Only sacrifice the latter, not the former