Penna Dexter

Healthy retirement planning is about more than just saving and investing well. It also involves seeing that your children acquire some skills in handling money. It's important to define and communicate boundaries regarding how much you'll help them so they don't become a financial drain on your nest egg. "Some parents are reluctant to think about letting go," writes Sue Shellenbarger, author of The Wall Street Journal's "Work & Family" feature. In a column titled, "Your Children Need a Launch Plan," Ms. Shellenbarger encourages parents to begin early to coach their kids in budgeting and saving. She also warns parents not to allow their emotions to overrule fiscal common sense. Several financial advisors she interviewed for her column told her this can be challenging. Matthew Papazian, founding partner of Cardan Capital Partners in Denver says, "Parents like to be proud of the lifestyle they provide their kids." But he's seen retirement plans derailed by parents who helped their kids with things like home purchases they couldn't otherwise afford. He guides his clients in formulating launch plans for their offspring and, when necessary, he'll provide some of the coaching himself. According to a recent study from Pew Research, in 2016, one-third of young adults ages 25 to 29 were living in multigenerational households — typically with parents. Sometimes these young adults genuinely need the help, and family togetherness can be great. But parents should ask themselves, are they using financial strings to control their adult children? Are they sending the message that they don't think their kids can make it? Another financial planner, Deborah Meyer of St. Charles, Missouri, advises parents to begin early with their children to instill "the mindset that you can do it." If you're able to provide well for them, still, let them work for some things. Teaching kids financial discipline will set them on a healthy path. And it's a good way to preserve your own portfolio.