Fireside Financial Episode 4: The Impact of Financial Assistance on Your Golden Years

In Episode 4 of Fireside Financial, Joseph and Regan discuss the increasing trend of parents supporting their millennial children financially.

They explore different forms of assistance parents are offering, including down payments on homes, groceries, rent, and mortgages. The hosts stress the importance of a solid financial plan to ensure the support does not compromise the parents' retirement or financial well-being. They also advocate for open communication with children about the financial assistance being given and how it may affect the family's estate in the future.

Ultimately, the podcast highlights the commonality of this practice and encourages thoughtful and informed decision-making in providing financial help to millennial children.

What You'll Learn in Today's Episode:

• Parents Supporting Millennials: The podcast discusses the prevalent trend of parents financially supporting their millennial children, particularly in the context of rising housing costs and inflation.

• Types of Assistance: The hosts mention various forms of support, including contributing to groceries, rent, mortgage payments, and even full down payments on home

• Financial Planning: It is emphasized that parents should have a solid financial plan before assisting their children. This ensures that their own retirement and financial stability are not compromised.

• Informed Decision-Making: Parents are encouraged to make informed decisions about the amount of support they offer, considering their financial situation and long-term goals.

• Open Communication: The importance of open communication with children about the financial assistance being given and its potential impact on the family's estate is highlighted.

Ideas Worth Sharing:

• "It's normal... you're not alone in that situation."

• "Financial support for your children: plan wisely, secure your own future."

• "Don't hesitate to help your kids, just make sure you're doing your own planning."

• "One of the greatest gifts you can give your kids is financial awareness."

• "Helping out now and seeing your kids benefit is a living legacy."

Resources in Today's Episode:

Joe Curry

Regan Schiller

Retirement Planning Simplified

What's the new normal for parents financially helping adult kids? Rob Carrick, Globe and Mail

How Does Financial Assistance to Adult Children Affect Your Retirement Income?

Are you worried about how financially supporting your adult children might impact your retirement income? You're not alone. Our guest today, Joe Curry, has a wealth of experience with this topic, being a parent who's currently navigating the waters of this complex issue.

His co-guest, Regan Schiller, has extensively studied the economic challenges faced by millennials and the increasing trend of parents providing some form of financial support to their adult children.

Both Joe and Regan have their unique, relatable stories that mirror what many parents are going through. They're here to delve into the nitty-gritty, detail by detail, of how they managed to strike a balance between offering financial help to their children and maintaining their retirement plans.

As parents of adult children nearing retirement age, there's a lot on your plate, particularly concerning financial planning and security. One crucial factor to consider is the impact of giving financial assistance on your retirement income. It's important to understand that while the act of giving is heartwarming, it could potentially disrupt the financial stability you've worked tirelessly to achieve. Through this blog, we will shine a light on these implications, offering a comprehensive view of the situation and equipping you with the knowledge to maintain a balance between your charitable instincts and your financial well-being in retirement.

Here are the questions answered in this blog post:

• How does providing financial assistance to adult children affect your retirement income?

• What are the tax implications of financially supporting adult children?

• How might financial support for adult children impact other income sources like RIFF withdrawals or OAS clawbacks?

• What factors should be considered when planning to give financial assistance to adult children while nearing retirement?

• How can parents navigate the potential family disputes related to unequal financial support for different children?

Views of guest speakers may not be shared by IG Wealth Management.

Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government's website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.