#1: Cut the financial cord with your children.
All parents have one basic responsibility: to equip their children to survive on their own, both emotionally and financially.
Retirees are often the wealthier members of an extended family—or they are perceived as such. But having money does not make you a bank. If a family member needs money, let him or her borrow it elsewhere. The wealth you’ve accumulated has to last you the rest of your life. The best way to remind your family and yourself of this simple fact is to simply say “no.”
Of course, some accidents and disabilities cannot be prevented, and there are times to rally behind family members truly unable to put a roof over their heads or food in their bellies. But for every truly unavoidable catastrophe, there are dozens more instances of parents enabling a freeloader.
You’ve worked too hard to sacrifice your financial independence and give up your golden years. Even if you have enough to support two generations indefinitely, being the “Bank of Parents” won’t help anyone in the long run.