We’re exploring the ten things you should be asking yourself right now about your future in retirement. Number five: “Can we help the kids with a deposit?”
Bank of Mum and Dad
We live in the era of the ‘Bank of Mum and Dad’. Research carried out last year by Bank of Ireland found that over half of the young people surveyed expected to receive help from their parents to get onto the property ladder.
It’s not surprising, because buying your first property is hard work. It takes discipline, savvy saving and, more often than not, requires a sizeable shot in the arm from the previous generation.
If you have kids, then helping them out is likely to be a high priority for you. However, it needs to be done in the right way. Quite apart from the tax implications (we’ll cover that in the next question) your money needs to be gifted in a way that’s sustainable for you too, and doesn’t come at the expense of your own retirement. There are things you’d like to do in retirement that you might feel you’re ready to compromise on. There also things you might end up having to pay for whether you like it or not, like long-term care.
Won’t somebody think of the children!?
As ever, we’ll tackle the question with you and we’ll give you honest answers about your situation. Where your kids are concerned emotion will follow in hot pursuit; but the temptation to make grand gestures is of no use at all if it hamstrings your own future.
We’ll go through the figures with you and if helping with a deposit is something that’s feasible for you. We’ll work with you to make sure your wealth is protected and that it keeps working long into the future. The key is to be able to help them get that foothold without destabilising your own financial picture in the years ahead.
That’s what the lifetime cashflow modelling of the Metis LifePlan is all about: it gives you comfort and peace of mind that any major decisions you take today are done in the context of a sustainable future.
Coming next time, question seven: “How do we pass on wealth without paying more tax than necessary?”
If you simply can’t wait and want to read all about it right now, you can sign up to download the guide in full here.
Talk to us
We’d love to help. Whether you’re just beginning to think about retirement, your plan is already under way, or it’s finally time to stop putting it off.
Call us for an introductory chat and we’ll see where you’re up to. If you like what you hear, we can meet and go through your vision for retirement as you see it.
It’s free and you don’t need to come with a plan. That’s what we’re here for.
Metis Ireland Financial Planning Ltd t/a Metis Ireland is regulated by the Central Bank of Ireland.
All content provided in these blog posts is intended for information purposes only and should not be interpreted as financial advice. You should always engage the services of a fully qualified financial adviser before entering any financial contract. Metis Ireland Financial Planning Ltd t/a Metis Ireland will not be held responsible for any actions taken as a result of reading these blog posts.