Financial Planning Goals For Retirement When You Are Helping to Support Your Parents and Your Kids

It’s a conundrum that many families face: “How can I take care of my children and my parents, financially, while effectively investing for my retirement?” If you are in this situation, you know that your financial planning strategy may need adjustments during this stage, but with the right plan you can still be on the path toward your retirement goals while also helping loved ones.  Here are some important tips while you navigate a few seasons of life:

Communicate Often

Nobody likes tough discussions. Financial discussions can fall into the “tough” category, but they are essential if you are helping loved ones.

You need to ask your parents about expenses so you can get a clear picture of their essential living costs, which should be covered, as much as possible, through steady income, such as Social Security, retirement accounts/pensions or annuities. Discretionary spending is also something you need to know about.

Also talk to your parents about healthcare plans, because as people age, they often don’t account for all the costs associated with failing health. If they’re not covered with the right health plans, it could lead to serious financial challenges.

You also need to discuss with your children the reality of their financial situation, which means their expectations should match what you are willing to offer them. This is also a tough discussion, especially if their wants outweigh their needs.

Plan Wisely

When you’ve had those important discussions, you can better plan for what money goes where. Most importantly, don’t avoid investing for your future. While it might seem selfish to think about your future first, you have to remember that if you don’t, you could end up putting the burden on a loved one to take care of you. Start by putting as much as possible into your workplace retirement plan. If possible, strive to save at least as much as your company will match, to avoid leaving money on the table.

To further set up your investment strategy for retirement, while also assisting your kids and parents, it is valuable to meet with a professional advisor. Financial advisers will discuss your goals, your expenses and income and find the best places to put your money so it works for you. Remember, it’s their profession (and hopefully, their passion) to know strategies and solutions for your success. You don’t have to do-it-yourself when it comes to your financial and investment future.

At Family Investment Center, we work with people in all stages of life and we’re ready to listen to you about what you consider financial freedom to be. Contact us and let’s get your financial planning on the best possible track – even if it includes getting answers to some of the tough questions.