Boomerang kid definition: a young adult who returns to live at his or her family home especially for financial reasons.
So you’ve been free for a few years, you’ve turned your kids bedroom into a gym or office and have been embracing your empty nest. Then your kids finish college and move back in, sometimes overstaying their welcome. It becomes clearer as retirement approaches, boomerang kids are having a major impact on retirement plans and real estate purchasing goals.
It’s interesting to think that baby boomers were way too cool to move back in with their parents back in the day. A lot of boomers were married before 25, owned a house and had a family. Now the average age for Marriage and owning a home is around 30.
Baby boomer’s retirement plans are affected financially and retirement may be put on hold. Many boomers may have plans to downsize, but having their adult children at home puts a damper on the early retirement and their potential real estate plans. Many retirement plans include moving and re-financing. Boomers want to save on interest by increasing mortgage payments and having a shorter amortization period. Most boomer’s goals are to become mortgage free, but instead of putting that extra $100 towards their mortgage they’re buying extra groceries or adding more data to their internet plans. The potential to cut down their mortgage payments seems impossible with all the extra costs of having a permanent roommate.
Then there are the kids who move back in permanently. Some view this growing trend as a great financial decision…if the adult kids contribute financially. Both parties have their living expenses cut in half, in these cases. Other benefits include having a built in babysitter, sharing housekeeping, errand running, even dog sitting. It’s convenient and cheaper in regards to property taxes, utilities and upkeep.
The cost of education is not going down, the cost of living and renting definitely has not gone down, so most parents are willing to help out their kids. Family is important, and for some that’s what life is all about.
Call Team Hillier when your ready to make the move: 613 825 4078