On July, 3rd I posted a blog entitled “Retire or Support the Kids?” of which this is a follow up blog. Before you accuse me of not liking kids, remember I’m a loving father and grandfather, and my kids mean the world to me. But just like you, at sometime I too would like to retire or start taking it easier (not to worry- I’m not going anywhere!) and it’s my job to keep you informed of the ramification of your monetary actions- so, let’s talk…
In my July 3, 2012 blog, I talked about how taking on the financial obligations of your children may put off your retirement because of the depletion of your retirement funds, or the addition of loan payments which will add to your monthly and annual expenses. I recently learned (yes, I learn something new every day!) how a default or slow payment schedule can have an effect on your Social Security payments. According to Government data compiled by The Treasury Department, a growing number of retirees Social Security checks are being leined upon by the Federal Government of those that have signed for student loans for their kids and have gotten behind in their payments. From January through August of this year, roughly 115,000 retiree’s checks have been reduced due to late payments. That’s nearly twice the amount in 2011, and our loving bureaucrats have vowed to up the amount in 2013 to try to bring in as much as they can, regardless of the financial situation of the parents.
The amount varies, but can be as much as a 15% haircut, which may be vital to the retiree if their income is close to their expenses. The point I am making? Be sure, if you plan to co-sign or be responsible for your kid’s loans that if you become fully responsible it won’t have an effect on your day-to-day living and lifestyle.
One of my favorite sayings about our loving children is “they move out, but they never leave.” To some extent, thank goodness! And as they said in Hill Street Blues, “be careful out there.”
Happiness Quote Of The Day
“Everything’s funny as long as it’s happening to someone else!”