Would Your Family Change Your Financial Plan?

Every once in a while we have time we can spend with family, maybe your immediate family is down the street or maybe like ours they are in Florida and Arizona, while we work hard on advancing our careers, paying off debt, increasing our investments, and ultimately financial independence.  Being with family can make you rethink what is important to you.  In my recent 10 questions with 1500 days, I mentioned this about my family if inherited $1,000,000.

I would pay off our mortgages, student loan, and personal loan I owe my parents. I would then shore up any remaining debt my parents have so they can officially retire. The remaining I would put in Vanguard funds, probably a breakdown of an S&P 500 fund, small cap, international, and bond. I’d also take a vacation in Hawaii to celebrate.
 

As you can see my parents are part of my financial thoughts. While my first priority is to take care of my situation financially, I care and love for my family and I think the next step will be to help put my parents in a situation that is better than they are currently in.
We are 6 years away from financial independent and retiring early, living off of our rental income and far below our means. Today my father is retirement age 65+ yet still working a full time job, I think living with some of life’s pleasures and making ill timed financial mistakes have brought this on. I think my Dad is an amazing man who has led a great life, someone who I respect and look up to. Some of the financial decisions he has made have taught me a lesson in how I want to lead my life and speaking quite frankly I will be looking to learn from his mistakes. I won’t divulge many of the details as it is not my place, but I think he is the reason I am so passionate about personal finance, entrepreneurship, and learning about money to help everyone including myself.  Which brings me to what I really want to ask everyone.

Would you change your financial life for your parents?

Here are a couple questions to ask yourself. Would you move to another state? Have your parents move in with you? Buy a different home to accommodate your parents? Pay for a nursing home? Pay for long term care insurance? Would you slow down your journey to financial independence to make sure your parents were being taken care of?

 

Featured image courtesy of fidelity.com

28 Responses to “Would Your Family Change Your Financial Plan?

  • I would definitely help take care of my parents in retirement. I feel they’ve done so much for us and have helped us in so many ways. Can’t say that I would bend over backwards to help my in laws though…

    • EvenStevenMoney
      3 years ago

      Haha on the in-laws. I wonder if people in early retirement or on the journey consider this in the equation?

  • My mother will most likely be moving in with us eventually. We are wanting our next house to have a mother-in-law’s quarters or something that can be made into that for this very reason.
    Michelle recently posted…Credit Card Mistakes That Can Lead To DebtMy Profile

    • EvenStevenMoney
      3 years ago

      We are beginning to have similar talks, we believe we are a couple years away, but it’s been on my mind heavily.

  • Old age comes to all of us eventually (if we’re lucky): it may be an old-fashioned way of looking at things, but I like the idea of family taking care of each other. We seem to have lost a lot of family values, the same way we have lost a lot of our sense of community.
    Myles Money recently posted…War!My Profile

    • EvenStevenMoney
      3 years ago

      I agree with you Myles we have lost a lot of family values, I think things change from generation to generation and we lose touch of who is important, our parents sacrificed for us are we not supposed to do the same.

  • I live 5 minutes from my Parents. If they needed to move into my house when they are older I would be more than happy to do that. Depending on how my house is set up I would probably even renovate it so it would be more accessible for them. My parents have done so much for me that I could never truly repay them. Other than that… they are financially set, I have seen their accounts and have POA if something were to happy to one or both of them.

    I would also do the same for my in-laws.

    • EvenStevenMoney
      3 years ago

      Being financially set is one aspect of it, but I think about taking care of my parents with health care as well. I would like to think I’m preparing to get in great financial shape myself so I can help my parents along the way.

  • Even Steven –
    In short, how could you not! Having recently had a child myself, it is really sinking in how much parents sacrifice to raise their children. I think giving some of that love back to your parents is a great and sincere gift. I’m not suggesting you put yourself into financial distress just to get them a Cadillac, but if helping them out means an extra year of the grind I think that is a sacrifice worth making.

    The thing that really stood out in your article to me was the dynamic between your fathers’ possible mistakes and how it led to your financial knowledge and prowess. I am sure he is more than thrilled that you were able to learn from him. It is a shame that we aren’t taught more about finance through formal education, so it remains the burden of parents to make sure they impart that knowledge. Good stuff.
    Sarge recently posted…Understanding Credit ScoresMy Profile

    • EvenStevenMoney
      3 years ago

      I think your line about the Caddy and an extra year of the grind is where my focus needs to be, thanks for that comment. Our parents play such a huge role in our financial lives whether they teach us all the right or wrong stuff you are coming away with something that is going to make a major impact.

  • I do plan a little concerning my family, more so in that I expect whichever house we buy when we retire will likely have a in-law suite for taking care of my aging parents. Luckily though, my parents are old school with money, and saved saved saved, so I don’t anticipate needing to help them financially.
    Mrs SSC recently posted…We overspent… so what?My Profile

    • EvenStevenMoney
      3 years ago

      That’s a great way to plan, I think housing is a great thing to consider and plan for retirement. I’m also considering health care, I just can’t imagine being a caregiver/nurse for my parents for many reasons, I’m still considering this aspect.

  • DH and I do have our mothers to consider when it comes to financial support. My mother is financially in a good place thanks to her work/government pensions in Canada, having no debt and she lives below her means. The MIL on the other hand did not fare nearly as well financially and still is working to support herself. They are both women with a lot of pride so we let them steer their own life. They know that we can and will step in should the need ever arise, whether it’s financial or due to declining health.
    Kassandra recently posted…Sunday Sweetness Volume 9 – Anniversary EditionMy Profile

    • EvenStevenMoney
      3 years ago

      Declining health worries me the most, it’s great that you can step in and help.

  • My parents were never good with money. Their last home was purchased by them at a significant discount from the fair market value as a result of divorce proceedings. They took over payments on the existing note and began to rack up quite a bit of consumer credit card debt. As a teenager, I watched them refinance that home, pulling out a huge amount of equity to pay off a portion of the consumer debt. For the rest of it, the “stale debt”, I assisted with writing “cease and desist” letters, in accordance with the Fair Debt Collection Practices Act, to request that the creditors stop contacting us.

    I’ve worked incredibly hard to structure our financial future, with a lot of inspiration and support from Mrs. Maroon. I’ve also done quite a bit to help my father better manage his retirement and, most recently, buy his own house. He is a work in progress, but if he can turn his finances around, I truly believe anyone can.
    Mr. Maroon recently posted…Best Gift EverMy Profile

    • EvenStevenMoney
      3 years ago

      That’s a great story with your father, helping to manage his retirement, house, finances, etc.

  • Interesting question. I would help my parents, and as a matter of fact my wife and I both help our parents financially. The reason is not because they are bad with money, but they are actually very frugal and savers. But being immigrants, they didn’t have the advantages and benefits that others have. They continue to be frugal and save so I have no problems helping out if needed…especially since they only spend money on important things. Both our parents raised us and took care of us…and I do feel an obligation to return the favor. As for moving in…that’s another animal. While I would do it…living together always brings many issues (which I have written about). It is tough living together when you have your own family.
    Andrew@LivingRichCheaply recently posted…Living Rich Cheaply: Have Your Cake And Eat It Too!My Profile

    • EvenStevenMoney
      3 years ago

      Living together I’m sure would bring it’s difficulties. I would think a guest house or separate unit in a multi unit would help some of that for separation, but tough none the less.

  • This might sound cold-hearted, but…

    Yes, if my parents truly needed help that would directly effect whether they live or die, then of course I would help them in any way that I can. In matters of life and death, my retirement takes second fiddle for my immediate family.

    However, I can’t say that I would completely scrap my plans and effectively turn my life upside down to accommodate them, no. And quite frankly, they wouldn’t want me to do all that for them anyway, so it wouldn’t cause any contention in the family in any way. In the end we are all adults and are responsible for taking care of ourselves.

    It would ultimately come down to the circumstances that we’re under. I would certainly bring them into my home on a temporary basis if that’s what they needed. But indefinitely? Nope. Pay for a retirement home? I might help, but pay the entire cost? Again, probably not. I would help them to find other options that would work for them and would be much more financially agreeable to all of us.
    Steve Adcock recently posted…I’ve been rethinking this whole “college” thingMy Profile

    • EvenStevenMoney
      3 years ago

      Honest answer I like it. I know everyone wants to be able to help their parents if they are in a difficult situation, but you are right to what extent does it end. Are we expected to drop thousands of dollars to make sure they have a comfy retirement or is it more our duty to make sure they get on their feet. It’s certainly a fine line and a difficult one to determine.

  • I am lucky in the sense that my dad has done a really good job of taking care of retirement. My parents house is paid for (although it needs a ton of work) he diligently saved for retirement, has a small pension, and social security. In addition, he owns mineral rights in some of the oil and gas fields that basically give my parents play money every month.

    That said, I would help my wife’s parents who, as far as I know, aren’t doing as well. They aren’t doing badly, but they are still working and as far as I know will be into the near future. I don’t know what their financial health will be, but I know they helped Mrs. ROB when she lost her job before we were married. I would like to return that favor by writing them a check and paying off their mortgage.
    Jason recently posted…Your GenerosityMy Profile

    • EvenStevenMoney
      3 years ago

      I think we all want to help our parents in some way, what a great return of generosity to pay off their mortgage, I hope you are able in the future.

  • Family can greatly affect your financial plans. If they have pretty much than you they can be wiling to offer some of their money. This has happened to me and has boosted my financial stability plans.
    Amos recently posted…5 Unexpected Ways to Save Your Business Time and MoneyMy Profile

    • EvenStevenMoney
      3 years ago

      I was thinking more that I would need to help my parents not the other way around, I would be boosting their financial stability.

  • That is great you have goals that require extra work and dedication! I wish you luck..and a happy New Year! We have a few goals, but I am really bad about long term goals… I like monthly goals, something about being able to quickly reach a goal and set another keeps me more motivated!
    Mrs SSC recently posted…2015…. here we come!!!My Profile

  • I would definitely help in any circumstances, after all they’re our parents. Without them We’re not a little single thing. I must say that In every case and unfavorable situation we should stand along with our parents.

    • EvenStevenMoney
      2 years ago

      I think helping is the most common in these situations, but I wonder how much each of us would give up or change to help someone out financially. Circumstances certainly will vary.

  • Actually I’ve seen many cases related to what the Author is trying to hold. And I just thought that even after encountering theses circumstances I’ll never commit the same mistakes what ever my relatives and my friend did.

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