The latest “Total Financial Solutions Safer Money Hour” on KHTS centered around the topic of the increasing number of parents who are helping support their adult children — whether in part or in full — rather than planning for their own retirement.

Logan Halaby — who co-hosts the show with Total Financial Solutions President/CEO Arif Halaby, a Certified Estate Planner — noted that the traditional path of parents supporting their kids until around age 18 is becoming less common.

“Four out of five parents are providing some kind of financial support for their adult children,” Logan Halaby said. “It’s not paying for everything necessarily, but about a third of those, they’re paying for the food and groceries for the kids 100 percent, all the way in full. About 20 percent (are) paying for the cell phones.”

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Halaby noted that the majority of these parents are actually spending twice as much on their adult children as their own retirement.

“We have to wonder why this is,” he said. “We’re not saying cut your kids out and shove them out on the street … but you certainly have to wonder, at what point are you taking care of someone whose an adult and who should be self-sufficient and it’s going to start hurting you?”

While an adult child who is living at home and contributing to the household through rent or other means while they work or go to school is one thing, Halaby noted that an adult child who doesn’t contribute, work or go to school is another story.

“If they’re just there on the couch and the video games and sucking up the Netflix account, then maybe you need to have a talk with them,” he said. “If they’re in that position, it’s usually not on their own that they just wake up and decide to change. Sometimes the tough love might come into effect, for your sake and for theirs.”

Halaby advised parents who are helping support their adult children in any way look at their personal situation, budget and retirement plans to help them determine whether they should continue, to what extent and for how long.

“This is where the budget comes into play and analyzing if you’re actually paying all this for your family just on its own, plus the kid who should be self-sufficient, and also planning for retirement,” Halaby concluded. “How much are you going to be able to do that, and is that going to be sustainable long-term?”

Total Financial Solutions prides itself in helping its clients design a higher income strategy, protect their principal and lock in their gains, all while securing reliable income for retirement.

For a free consultation, contact them by calling 888-99-RETIRE or by visiting their website www.TFSwealth.com.

Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.  

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Newhall, CA 91321

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Arif Halaby, Total Financial Solutions, Financial Planning, Planning for Retirement, Retirement Planning