Broker Check

Are you acting in the best interests of your (adult) childre

| July 29, 2013

The Lead Comment

(Please first read the article linked immediately below.) 
Because some if not most of my clients have investments, this comment is aimed at people who do have investments – and adult children (one of my favorite oxymorons!)

My own highly personal but also professional view: First let’s assume that you, as a parent of adult children, want to act the same way that I do, i.e. in a Fiduciary manner, i.e. only acting in your children’s best interests. (Easy to say . . . harder to do!) I then ask you if not actually challenge you to think carefully if / when you receive a request – or an implied request – for financial help from one (or more) of your children.

It is certainly true that many people of all ages have gone through “financial dislocations” that are frequently not their fault. So . . . maybe . . . if that is your child’s situation . . . the first time it happens, you might consider helping.

The problem arises when the behavior becomes a pattern. If it does, then you are enabling. You’re not helping your child to become self-sufficient. I do understand, and so does the author, that it is not so easy to stop – once started. At the same time, go back to my comment above – if you want to act in your child’s best interests – please consider the consequences!

The How-To Articles

Three Big Money Mistakes You Could Be Making Right Now . . . . Wall St Journal

A Dozen Things I’ve Learned from Michael Mauboussin about Investing​ . . . .

“9. ‘When you see something occur in a complex adaptive system, your mind is going to create a narrative to explain what happened—even though cause and effect are not comprehensible in that kind of system.’ People love stories and great story tellers can earn a huge premium in financial markets as promoters. Getting rich as a promoter is very different than getting rich as an investor.”

The Finance – Economic – Political Articles

Glass-Steagall Is Necessary, but the Argument for It Isn’t. . . . . Wall St. Journal

So You Want to Be a Landlord . . . . . Big Picture

“Take a look at the number of houses for rent in Phoenix. (above – ed.) The following is the snap shot I took on March 18, almost exactly 4 months ago.”

My Comment: Looks like another bubble. Look at the increase in the empty rentals!

Boston Metro Financial Advisor

If you’re looking for a Boston Metro Financial Advisor – or if you’re happy to work virtually – visit me at my Coolidge Corner office. Or call or email me anytime with your questions!

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