2. Don’t Cosign for Kids
What parent doesn’t want to help their child get a head start in life? This is why some younger and older boomers cosign student loans, mortgages and auto loans for their children and grandchildren. But while the gesture is certainly welcomed by offspring, cosigning a loan is a risky move that could jeopardize your finances.
As a cosigner, you agree to pay a debt if the primary signer defaults or can’t pay up. This means you could become responsible for someone’s student loan payment, mortgage payment or auto loan payment. If so, money that could have strengthened your retirement account goes to clearing a debt.