:throwing good money after bad MASTER CLASS
Throwing good money after bad
WE ALL LOVE OUR CHILDREN, we want to do our best by them, and so it would be nice to think we could spend on them as they progress through life, whenever money is needed, and leave them a lot of money when we pass on. But can we afford to do so? In my hundreds of meetings with
prospective clients over the past 25 years, we nearly always end up back at the thorny issue of retirement planning. It is a very big issue since there will be a time in our lives when we cannot work, and still have to find the cash flow to have a decent standard of living. We will need a lot of money in savings/investments, especially if we are going to live another 20 to 30 years after we have stopped working. As parents sometimes we have to stop and think about ourselves first! I have seen people run out of money at age 70 to 80, and they have
very few options, since most of them cannot go back to work. It is important to be thinking about your money and retirement at age 40 or 50 and reviewing it at least annually so you don't get caught out at age 75.
GIVING MONEY TO YOUR CHILDREN WHILE YOU ARE ALIVE
If we are to have a half decent retirement, just how much can we spend on them? We should of course ensure they get a good education, including
university or other higher education, hence getting a good start in life. However, what we spend should be in proportion to our income and assets. I am a fan of the old saying "give a woman a fishing rod, and she will feed herself for a lifetime". Not "giving a woman a fish which will only feed her for a day" because tomorrow she will come back and ask for another one. Most readers will agree but again and again I see people being kind
and generous to their children, giving away cash, or making loans that don't come back, and helping children get things they probably could go out and get for themselves. And remember, most children have 20 to 40 years working life left. Most parents don't Do not erode your retirement funds or regular savings excessively. The number one rule is to retain enough money for yourself first.
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Do not erode your retirement funds or regular savings excessively. The number one rule is to retain enough money for yourself first.
