Preparing for retirement also means putting yourself first. At times, your children or grandchildren might fall on hardships and need a handout. As a rule of thumb, you should only lend what you can afford to lose. But even when you have extra money to spare, consider putting the brakes on the money train — particularly if you’re slowly becoming everyone’s ATM.
It might be natural to come to your children’s rescue every time they fall on hard times. Just know that it’s not your responsibility to constantly bail them out, especially if they have a habit of making poor choices with their money.
Your retirement income only stretches so far, so be smart with how you handle your money. Giving your children or grandchildren money for a down payment or cash to erase their personal debt benefits their financial well-being, but it can hurt your retirement.
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