Are Your Adult Kids Delaying Your Debt Deadline?Aug 15, 2018
Are you trying to pay back your consumer or mortgage debt before retirement, while supporting adult kids? This is a tough situation more and more boomers are finding themselves in. Of course, you want to help your kids, but you don’t want to risk your retirement savings or miss your debt repayment window while you’re still earning. Here’s some advice from our LIT’s in this month’s podcast:
Determine your financial health
Your kids are dealing with the cost of raising children in an inflated economy and you want to help. However, as you approach retirement, your ability to repay your consumer debt and save enough while you’re earning top dollar is shrinking quickly. Ask yourself these questions to help you answer determine your financial health:
- Is your financial plan on track? Will your retirement savings last you through your retirement years? A meeting with a financial advisor might be in order. Think ahead to your 80’s and 90’s — will you have enough then if you’re dipping into savings now? Use this retirement calculator to estimate your savings and retirement plan.
- Are you still paying off consumer debt? Calculate all your outstanding debts and interest rates, including your mortgage. Will you be able to service these debts once your income drops? Make a plan to repay this debt now so you won’t have added stress during retirement. Check out this debt relief options calculator to help you figure out your options.
- Is your financial support impeding your financial goals? If financially supporting your kids means cutting into your savings, debt repayment or your ability to cover your bills, you need to make some changes. That might mean re-working your budget, being honest with your family, or reducing expenses. Look at The Grandparent Budget to see what you can afford to spend.