00:00I guess the first question is, how much does it cost? What is the financial cost of letting a
00:04grown child move back into your home? Financial planners talk about an average of $1,500 a month,
00:10which comes out to about $18,000 a year. So it's more significant than you might think.
00:16And it's not just recent graduates either. I mean, your adult children could be separating
00:20or divorcing and have kids, have pets on their own and bring them back home.
00:25How do you plan for this? What are the planners saying you can do to kind of get ahead of
00:29this?
00:30Well, I say, I mean, an important part is to set expectations. So when your adult child wants
00:35to come live back home, talk about, you know, will they pay some rent? Sure, you'll give them below
00:39market rent, of course, you know, which, but it may increase over time, you know, so they have sort
00:44of incentive to not make this arrangement last forever. Yeah. So setting expectations about rent
00:50and about privacy and just how things are going to work is just really important.
00:56Can I ask a question? Please.
00:58I'm asking for a friend. How do you get them out the door once they've moved back in?
01:03Well, Tom, you must have made it a little too comfortable for them.
01:06That's the major thing, is they'll make it too comfortable.
01:09Yeah. I mean, you definitely don't want to be raiding your retirement account or drawing
01:12down on your savings and perhaps not retiring because they've come home to live.
01:17Exactly. I mean, that's the key. If it's coming at the expense of your retirement security,
01:20you really have to think twice because your kids will have a long runway, you know, for earnings.
01:26Your runway, if you're close to retiring, is not.
01:28Stop. I'm going to get upset now. I remember sitting on the bed with my father. I came home
01:34from school and all that. And he said, you've got four weeks to move out. That was the runway.
01:38You know, right.
01:38You know what?
Comments