Hotel Near FIU - When Should Parents Stop Helping Their Grown Kids Financially?

Source     - http://online.wsj.com/
By            - Press Release
Category   - Hotel Near FIU
Posted By - Homewood Suites Miami

Hotel Near FIU

Parenting is hard work. And parents of adult children, in some ways, have it even harder. That message jump-starts a new book, "Parents to the End: How Baby Boomers Can Parent for Peace of Mind, Foster Responsibility in Their Adult Children, and Keep Their Hard-Earned Money." The author, Linda Herman, a psychotherapist in Seattle, tells a familiar tale: Parents in their 50s and 60s—just when they think they're done raising their children—find themselves footing the bill for all manner of goods and services: new furniture, cellphone fees, medical expenses. Eventually, some painful questions take center stage: How much help is enough? And when is it OK to stop? Ms. Herman answers those questions with no-nonsense advice and strategies. (Among our favorite sections: The Bill of Rights for Parents of Adult Children. Among them: The Right to Be Free From Guilt.) Yes, it's understandable to want to help one's adult daughter or son, Ms. Herman writes, but not at the risk of "becoming your child's permanent hotel and bank account." In all, a wise and invaluable book.

Most people are familiar with the so-called 4% rule in retirement planning: the idea that you can withdraw about 4% from your nest egg annually with a good probability that your savings will last 30 years. Similarly, most retirees are familiar with "required minimum distributions," the tables (courtesy of the Internal Revenue Service) that help you calculate annual withdrawals from individual retirement accounts and related vehicles. Both approaches have their limitations: The 4% rule (if followed strictly) tends to overlook market conditions; required minimum distributions don't account for inflation. Now, Henry K. ("Bud") Hebeler, who operates one of our favorite retirement websites, analyzenow.com, has come up with what he sees as a better approach: a combination of the 4% rule and required minimum distributions. His Autopilot program accounts for investment performance (if markets are doing well, you can pull a bit more from your nest egg) and factors in inflation. A smart solution.