Retirement planning is not an easy task. Figuring out how much income you will need to retire or how much you and your spouse will need can be time-consuming. Fortunately, you can speak with your financial adviser to help you iron out the details. But what happens when your retirement plan falls off track? Do you have a child living at home that was born between the years of 1981 and 2000? You might have a millennial weighing down your retirement plans.
The millennial generation, also known as Generation Y, is a diverse group with diverse issues. While some of the older millennials are finally finding their footing, some of the younger millennials are finding themselves back at home with parents. This report from Pew Research shows that fewer millennials are living independently. They are known as “boomerang children” coming back to live with mom and dad. That means you. If your retirement plan includes leaving the country and selling your home, for example, you might find that you need to adjust your plans. But all is not lost; here are a few ways to manage your millennial child.
How to Plan Retirement Around a Boomerang Millennial Child
The first step involves being honest with yourself and your child. Have a family conversation and talk honestly to your child about your retirement plans. Discuss your son or daughter’s employment. Involve them in your vision of retirement so they can see the impact of their choices.
Secondly, take the time to help your son or daughter set S.M.A.R.T. goals. This system of goal setting involves creating goals that meet five important criteria. The goals must be Specific, Measureable, Achievable, Relevant, and Time bound. Each goal that is set in this manner has a high probability of success.
And finally, set up a time to chat with your financial advisor about a backup plan if you have to continue supporting your child. Your advisor can create different scenarios to show you how additional income or outflows can affect your retirement timeline.
Ultimately, you have worked very long to reach your retirement goals. As much as you love and cherish your children, sometimes, a conversation to address goals is necessary to encourage action. Then you can enjoy the retirement that you have worked so hard for, and your son or daughter can begin reaching their goals.
Do you need to re-evaluate your retirement plans? Contact us at Parrish Capital and we will help you create the plan that meets your specific needs.