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Having Children Can Ruin Your Retirement Parenthood can spoil the best-laid fina

Having Children Can Ruin Your Retirement Parenthood can spo...
Soul-stirring primrose immigrant
  09/25/17
About a third of parents help adult children with gifts of t...
ocher dashing site
  09/25/17
Lol. To sum this up: "Be a childless spendthrift shr...
Aphrodisiac garrison
  09/25/17
crlol GC is shameless.
vivacious vengeful regret
  09/25/17
and ours. hehe.
Jet genital piercing corner
  09/25/17
...
shimmering contagious orchestra pit
  09/25/17
...
Dull Curious Gas Station
  09/25/17
...
Pea-brained Sadistic Stage
  09/25/17
...
Boyish ultramarine hall feces
  09/25/17
...
Clear sound barrier address
  09/25/17
hehe
crawly prole
  09/25/17
HEHE, MORE MONEY, HEHEHEHE
french rehab
  09/25/17
...
crawly prole
  09/25/17
Who is this aimed at? Who the fuck is dumb enough to not und...
180 yapping chapel mother
  09/25/17
children can be expensive or not. pretty easy to find people...
ocher dashing site
  09/25/17
"Kids are expensive" is a rancid GC flame.
crawly prole
  09/25/17
Just let them roam free-- cage free.
180 yapping chapel mother
  09/25/17
(maf parent
Soul-stirring primrose immigrant
  09/25/17


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Date: September 25th, 2017 12:23 PM
Author: Soul-stirring primrose immigrant

Having Children Can Ruin Your Retirement

Parenthood can spoil the best-laid financial plans.

By Ben Steverman

September 25, 2017, 2:00 AM PDT

Photographer: Getty Images

You don’t have children to get rich.

From the moment a child arrives, parents pay more—for food, clothes, health care, larger homes, child care and education. The total tab for getting a kid from birth to the 18th birthday is $233,610, according to an annual estimate by the U.S. Department of Agriculture. And that figure doesn’t even include the skyrocketing costs of college tuition.

Parenthood has plenty of non-monetary perks, but the financial effects can last the rest of your life.

More than half of American workers are in danger of retiring without enough money, according to Boston College’s Center for Retirement Research. The center found that children should get at least some of the blame, according to a study released this month.

It may seem obvious that kids make it harder to save. In practice, however, parents can compensate for the extra costs of parenting by spending less on themselves. Parents are often forced to budget carefully—a skill that will pay off long after their children are grown. Some people may even decide to take their careers more seriously after having kids, and studies show that some fathers end up earning more than if they’d remained childless.

The National Retirement Risk Index is the Center’s estimate of how many Americans are in serious danger of not being able to maintain their lifestyles after age 65. The latest NRRI—based on the Federal Reserve’s most recently released Survey of Consumer Finances from 2013—shows 52 percent of U.S. households at risk of falling short of their post-retirement financial needs by 10 percent or more.

To find out how parenting affects retirement savings, the Center re-analyzed the survey data, looking at the correlation between Americans’ financial situations and the number of children they have.

“The bottom line is that households with children would be expected at the end of their work-lives to have less income and lower wealth,” the study’s authors write.

For parents in their thirties, each child is associated with a 3.7 percent drop in income and a 4.5 percent decline in wealth. Older households feel less economic pain: While parents in their fifties have 2.8 percent lower wealth per child, their incomes are barely affected.

A key contributing factor to parents’ financial shortfalls is the so-called motherhood penalty. The typical mother earns $9,400 less per year than the median woman without children, the survey data show, and mothers are also 12 percentage points less likely to be working for pay.

As they approach retirement age, parents can make up some of the lost ground. But they can’t close the gap completely. By age 50 to 59, each child is associated with a 1.9 percentage point rise in a parent’s risk of falling short on the NRRI.

A 2 percentage point jump in retirement risk isn’t catastrophic. Other factors can have a much more profound effect on your likelihood of saving enough. For example, researchers found that access to a traditional pension at work is associated with a 40.5 point drop in retirement risk.

Still, the financial damage of being a parent multiplies the more children you have. And the chances of falling short are higher for the middle class than for other groups.

For the bottom third of workers by income, savings are less important because they can rely on Social Security to meet more of their retirement needs. For the top third of workers, researchers admit that their method may be underestimating the financial hit caused by children. Many well-paid parents appear to have healthy savings, according to the NRRI, but they’re likely to spend huge amounts sending kids to college. “It makes households look more prepared for retirement than they actually are,” the authors write.

Even after children graduate, move out and start their own careers, a parent’s job isn’t necessarily done. According to another Boston College study released last month, many parents continue donating time and money to children well into adulthood.

About a third of parents help adult children with gifts of time, presumably for child care and other chores. They contribute an average of 366 hours a year, researchers found, or 7 hours a week. Eventually, some children return the favor, especially as parents get older and need help. A quarter of parents report receiving the gift of time, an average of 324 hours per year, from their children.

About 31 percent of parents also say they give money to their adult kids, an average of $3,084 in the past year. Money rarely flows in the other direction, however: Only 9 percent of parents report taking money from adult kids in the past year, and the average amount received is just $595.

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291382)



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Date: September 25th, 2017 1:41 PM
Author: ocher dashing site

About a third of parents help adult children with gifts of time, presumably for child care and other chores. They contribute an average of 366 hours a year, researchers found, or 7 hours a week. Eventually, some children return the favor, especially as parents get older and need help. A quarter of parents report receiving the gift of time, an average of 324 hours per year, from their children.

About 31 percent of parents also say they give money to their adult kids, an average of $3,084 in the past year. Money rarely flows in the other direction, however: Only 9 percent of parents report taking money from adult kids in the past year, and the average amount received is just $595.

parents report, parents report. what kind of shit study relies on the answers of only one group, a group with a natural incentive to overestimate one thing and underestimate the other, and then report the results as meaningful?



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292119)



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Date: September 25th, 2017 12:30 PM
Author: Aphrodisiac garrison

Lol. To sum this up:

"Be a childless spendthrift shrew! Your happiness depends on it!"



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291451)



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Date: September 25th, 2017 12:30 PM
Author: vivacious vengeful regret

crlol

GC is shameless.

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291461)



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Date: September 25th, 2017 12:32 PM
Author: Jet genital piercing corner

and ours. hehe.

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291473)



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Date: September 25th, 2017 12:33 PM
Author: shimmering contagious orchestra pit



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291477)



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Date: September 25th, 2017 12:33 PM
Author: Dull Curious Gas Station



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291482)



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Date: September 25th, 2017 12:38 PM
Author: Pea-brained Sadistic Stage



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291519)



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Date: September 25th, 2017 1:31 PM
Author: Boyish ultramarine hall feces



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292040)



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Date: September 25th, 2017 1:32 PM
Author: Clear sound barrier address



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292051)



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Date: September 25th, 2017 1:45 PM
Author: crawly prole

hehe

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292153)



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Date: September 25th, 2017 12:33 PM
Author: french rehab

HEHE, MORE MONEY, HEHEHEHE

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34291480)



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Date: September 25th, 2017 1:45 PM
Author: crawly prole



(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292155)



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Date: September 25th, 2017 1:34 PM
Author: 180 yapping chapel mother

Who is this aimed at? Who the fuck is dumb enough to not understand that children are really expensive?

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292068)



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Date: September 25th, 2017 1:42 PM
Author: ocher dashing site

children can be expensive or not. pretty easy to find people with more than one child who don't earn much more than $200,000 over 20 years

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292130)



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Date: September 25th, 2017 1:46 PM
Author: crawly prole

"Kids are expensive" is a rancid GC flame.

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292160)



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Date: September 25th, 2017 1:48 PM
Author: 180 yapping chapel mother

Just let them roam free-- cage free.

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34292178)



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Date: September 25th, 2017 4:04 PM
Author: Soul-stirring primrose immigrant

(maf parent

(http://www.autoadmit.com/thread.php?thread_id=3743299&forum_id=2#34293178)