A quiet normalization of parents helping their adult kids financially happened over the past 15 years or so. The obvious next chapter: Help for grandchildren.
A recent poll sponsored by Toronto-Dominion Bank found that 57 per cent of parents expect to financially support adult children. Top reasons include the high cost of living, the cost of home buying and a sense that kids are becoming financially independent later in life.
Will parents decide to keep the financial support flowing when their kids have kids? A big part of the overall increase in living expenses in recent years is the cost of parenting. Feeding a family of four, plus paying expenses like child care, activities, tutoring and summer camps is a heavy load. Are grandparents stepping in to help?
Help me learn more by completing this anonymous survey for people with grandchildren of all ages. I’ll report on the findings in the weeks ahead.
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Rob’s personal finance reading list
Toronto Life talks to a Swiftie – a Taylor Swift fan, for those of you living on other planets – about how much she’s spent to attend Swift concerts in the United States, Europe and, now, Toronto. Swift will perform six concerts in the city starting on Nov. 14.
Macleans’s lists the country’s wealthiest individuals and families. Old and new money here, and some insights on where wealth is being generated in today’s world.
A real world guide to investing
A prominent investing blogger on the things he doesn’t believe about investing. A backhanded way to delivering some bracingly truthful observations.
Dozens of gift ideas for the holiday season, all of them made in Canada and priced at less than $100.
Podcast fans
Subscribe to Stress Test on Apple podcasts or Spotify.
Ask Rob
Q: The concern I have with buying an annuity is, what happens if the insurance company that holds the annuity goes bankrupt? I am thinking of a serious financial crisis situation.
A: Assuris, an agency that protects against the failure of a life and health insurance company, says the following on its website about annuities: “If your life and health insurance company fails, Assuris guarantees that you will retain up to $5,000/month or 90 per cent of your promised monthly income benefit, whichever is higher.”
Do you have a question for me? Send it my way. Sorry I can’t answer every one personally. Questions and answers are edited for length and clarity.
Tools and guides
I recently wrote about DIY retirement planning apps, including one you can download and try for free. A long-time reader pointed out another planning tool called Neontra, which I tested and found to be both user-friendly and comprehensive in combining budgeting, spending, saving and investing. There’s an ad-supported free version of Neontra, or you can subscribe for $12 monthly or $99 a year.
In the social sphere
Social Media: A chart documenting the welcome decline in rent increases in Canada.
Watch: How to invest your first $1,000 in the stock market. This is helpful. Now for a look at whether scholarship trust RESPs are worth it. My take: No, they are not.
Money-Free Zone: Bruce Springsteen came to Ottawa last week on his latest tour and did what he always does – deliver two and a half hours of A+ live music. With 50 years of material to draw from, the hits and familiar songs kept coming. But my personal favourite of the night might have been a deep cut called Youngstown that included a massive solo from unsung guitar great Nils Lofgren.
More PF from The Globe
– Look out for these personal finance pain points in the U.S. election aftermath
– When should Colin, 64, and Jacki, 62, sell their rental property to help fund retirement?
– Yes, FIRE is inflation-proof. Here’s how not buying a home helps shield you