giving money to adult child/children
Hi, Terry. Just completed watching your webinar presented by the libraries.
My question is, would it be a good idea to help a grown son buy a condo with some money that my husband has had in an investment acct. with Chase? My husband also has a TSP acct through the Postal service as a mail carrier for 40+years. He did not pay into SS, but he had this TSP investment. Plus, he has an inheritance acct shared with 2 brothers, from when his father passed away in 2019.
Thank you for any advise you would kindly share.
Terry Says
This decision must be part of an overall financial plan — as well as your heart. And this is where a review of your retirement plans, spending needs, income that is guaranteed, etc comes into play.
Are you already living on that retirement income, or are one or both of you still working, and able to save even more for retirement?
As well, you need to think of the possibilities that something will come along — the need for long term care?? — that could devastate your savings, and impoverish the surviving spouse.
That is a daunting task, since no one can predict all the eventualities of the future. As well, you’d need to think about the impact if you have other children, who might be “entitled” to the same time of financial assistance in the future. If this is your only child, that wouldn’t be a problem.
And finally, you need to think about what the impact of such a gift would mean for your son. Is this a good thing — getting him off to a good start in the housing market, and helpful for his peace of mind? Or would this “bind” him to a certain location — maybe restricting his job movements in the future? Again, no crystal ball here.
So, I’ll close with this personal note: I did that for my own son many, many years ago. I’m so glad I did!
