When to give to children # 2

I’m Miriam  Neff-with STARTING OVER FINANCIALLY, and I’m Valerie Neff Hogan, and we’re here to talk about money

M Financial planners give advice.  We agree with some and not others.  We talk about giving that $15,000 gift to children, their spouses and grand children.  Several advisors say, ‘Don’t do it.’ That gift becomes an expectation, even dependency, and may hinder their work ethic.

V Caution: those gifts reduce your portfolio they oversee.  It may be financially beneficial to them not to shrink that portfolio.  This is not in your best interests or your children.  We see many families where the work ethic is solid and not impacted at all.  That gift might make the difference of a meaningful family vacation when children are young. Its worth giving to you can see the impact and enjoy being generous.

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