Of all the risks boomers face in securing a comfortable retirement, advisors shouldn't lose sight of what boomer clients themselves are doing to their portfolios. A survey released Wednesday by TD Ameritrade found three-quarters of boomers would feel obligated to help their adult children financially if they were asked to.
The 2011 Investor Index found boomers are putting their children's future before their own. Fifty-seven percent of respondents said they were willing to support their grown children, even if it took away from their retirement income. Of more than half of respondents who said their children returned home for at least three months, 42% said that it had a negative impact on their finances.
“While boomers may have the best intentions, they could be setting the wrong precedent by financially supporting their adult children, particularly when it comes to discretionary items,” said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade.