Bank of Mom and Dad

How you can help adult children without jeopardizing your own financial future.

With the cost of housing and education continuing to rise in Canada, it’s more difficult for younger generations to get established.
While average hourly earnings (adjusted for inflation) rose approximately $3 between 1977 and 2016, average housing prices have more than doubled, and significantly more than doubled in many of Canada’s cities.

The cost of a university education has almost doubled just since the early 1990s, with tuition continuing to rise significantly annually over the past decade.
It’s entirely understandable that parents want to help their children – but does helping leave parents at a disadvantage?
Some worry they will have to postpone retirement.

Sometimes you need to access your home equity instead of liquidating your savings.
If you are a homeowner and a parent who intends to help your adult children financially, there may be a better solution available to you.
Rather than dipping into your retirement savings, why not use the equity in your biggest asset – your home – to provide some financial flexibility and enable you to help fund large purchases for your children?

If you have adult children who need financial help from you, make sure that your needs are met first – or you may be the one asking for help from your children later. Unique financial solutions are available that can provide access to your home equity, and prevent you from having to liquidate other investments.
Speak to your advisor today to figure out if an all-in-one account is a suitable solution for you.

This blog has been prepared by Jodi Dark who is a Financial Advisor for HollisWealth®, a trade name of Investia Financial Services Inc., and does not necessarily reflect the opinion of HollisWealth or Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee their accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication/blog and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities. The information contained herein may not apply to all types of investors. The Financial Advisor can open accounts only in the provinces in which they are registered

Source: https://globalnews.ca/news/3854264/boomers-gen-x-millennials-cost-of-living-canada