We all want our kids to have a better life than we did, that’s why we’re always giving them advice (whether they take it or not). When it comes to giving them advice about saving for retirement, it can be difficult to put it in their terms. However, giving your children or grandchildren the right tools in their 20s can help them be successful in their finances. Here are three ways you can get your adult children interested in saving for retirement:
Lead by example
Your children do not see your retirement savings come out of your paycheck every two weeks, and they may not even know that you have worked so hard to save for retirement. If you’re comfortable with it, sit down with them and show them all the moves you’ve made toward your retirement goals. Show them your income deferrals, show them how you invested your bonus instead of spending it, etc.
But for this to work, you’ll also need to explain how all that saving has grown over the years, and that if they start now, they may be able to create a nest egg of their own.
Take them to a meeting with your advisor
Introduce them to your trusted advisor so they can feel comfortable talking with someone about their financial goals. Explain to them how having an advisor has helped you stay on track for your retirement saving, and have them take a business card so that when they’re ready to make an appointment, they have all the info they need.
In addition, have them prepare 3 questions for your advisor during that first meeting. This encourages conversation, and lets them know that an advisor is there to help.
Help them start a retirement folder
Throughout this entire process have your children keep a folder with important documents like your advisor’s contact information, copies of their tax returns, etc. This will help them prepare for their initial meeting with an advisor. When they feel more organized, they’ll be more comfortable sitting across the table from a financial advisor.
Need help getting that folder in order? Print our Comprehensive Financial Physical worksheet and keep it in the folder as well. Have your children check it yearly to see if there are new items they can add to their folders. This checklist is also great to review before any meeting with an advisor.
Taking these three simple steps will not turn your children or grandchildren into overnight millionaires, but it will give them some guidance when it comes to saving for retirement. As with any new experience, investing can be intimidating at first – it’s one reason a lot of people never do it! But with the help of a trusted parent or grandparent and a financial advisor our kids can be on the right path to financial success!
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