Published:
Reminder: Dad Take Care of your Nest Egg!
WASHINGTON, June 12 /PRNewswire-USNewswire/ -- My father has always been tech-savvy -- and generous. For years my sisters and I have benefited from his talent for discovering and securing the latest gadget, just in time for birthdays or holidays. He's our own Consumer Reports, and he's good at it. But this Father's Day, I'm asking my Dad to look out for himself.
For the past year, I've been reading and writing a different set of consumer guides -- those distributed by my non-profit employer, WISER, (Women's Institute for a Secure Retirement). WISER educates people about retirement income, and discourages them from providing gifts -- including expensive college educations--for daughters, however deserving.
Boomers like my father have a reputation for over-indulging their kids. The problem with this ongoing generosity is that the financial needs of children increase at exactly the time parents should be focused on saving more for their own retirement. College, weddings, and down payments all generally come up after a child leaves home.
Boomers who wouldn't spend an extra dollar on a vacation for themselves will dish out thousands of dollars set aside for retirement, raiding 401(k)s and IRAs, to help their children. Bruce W., ofMaryland, recently drained his $70,000 IRA to finance his daughter's wedding. While Bruce, 57, says it was a great family event, he admits he will have to work "forever." WISER strongly cautions against such generosity. More than half of people Bruce's age who expect to work beyond retirement age leave the workplace earlier due to illness or job loss.
What can be done? My mother's suggestion is a "Boomer Rescue," like the "Poodle Rescue" where she found her beloved dog, Charlie. Unfortunately, for many unprepared Boomers, there will be no rescue. But there is hope. Adult children, take some responsibility. Before asking for financial help, consider statistics that show that near-retirees have a median amount of $62,000 in their retirement plans -- money that must last a couple of decades. Consider that without enough retirement savings, Mom and Dad may become the needy ones, a new and serious financial strain when they can't afford their prescriptions, or have to move into your spare room to avoid long-term care costs.
So whatever the need -- tuition, a wedding, a master's degree, a second wedding -- Boomers and their children should count to 10 whenever they feel compelled to give or receive money that may be needed for retirement.
This Father's Day, remind Dad that an empty nest doesn't have to yield an empty IRA.
Martha Patzer
Women's Institute for a Secure Retirement
SOURCE Women?s Institute for a Secure Retirement
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
Daily NewsTags: ,FIN,POL,ECO,SCZ,WISER-nest-egg-saving
Search News
Daily News
