Before You Write a Check to Your Adult Kids, Ask Yourself These 3 Questions
Article written by Donna Fuscaldo, Kiplinger
Before giving your kids money in retirement, ask these 3 questions to protect your nest egg and their financial future.
Your daughter needs money for a down payment on a new house. Your son needs a loan to wipe out high-interest debt. Another child wants cash to pursue a graduate degree. As parents, it’s entirely natural to want to step in and help. But if you’re already retired, you need to think twice before opening your wallet. After all, you don’t want to jeopardize your own financial security for the sake of theirs.
In retirement, you’re living on a fixed income, which means any unplanned financial support you give your kids will come directly from your nest egg, leaving less money to fund your own lifestyle or for your estate. Even if you can comfortably afford the hit, that doesn’t automatically make it the right move. Sometimes, bailing adult children out only serves to enable bad financial habits.
Mixing family and finances is always complicated. Before you sign any checks, make sure you ask yourself these three critical questions.
1. Why do they need the money?
The first question to ask is: What do they need the money for? Before you can go any further in the decision-making process, you have to determine if the reason is worthy of consideration, says John Rafferty, partner and investment advisor representative at Solomon Financial. Equally important is who is asking. Do they have a history of asking for money, and will giving it to them enable bad money habits?
If the money is for a good reason, ensure it will put them in a better situation in the future. Can your child afford the home you are giving them a down payment for? Will they incur more debt if they pay down the existing debt? Is the degree worth the ROI?
“Sometimes you think you are helping them buy a house that they can’t afford, and it puts undue stress on them,” says Paul Jarvis, a wealth advisor at Prime Capital Financial. “It’s better to have an open and honest conversation about what the gift is meant to accomplish.”
2. Can I afford it, and if not, am I willing to work or sell assets?
(Image credit: Getty Images)
If you’re okay with the reason your child needs money, the next question you need to ask yourself is: Can I afford it, and if not, am I willing to make sacrifices to get it?
If you can afford to help, the money will likely need to come from investments or retirement savings. Choose your funding source carefully to minimize taxes and sequence-of-returns risk. Pulling from a tax-deferred account, like a traditional IRA, will increase your taxable income, while withdrawing from a tax-free account, like a Roth IRA, means giving up years of compound growth, possibly creating a retirement shortfall.
If you can’t afford it, are you willing to work part-time or take on debt to give your child money? “If I were not enabling my child, I would much rather suffer than my child,” if it were an emergency, says Rafferty. “If the child is showing the propensity to ask for money, then the answers are different.”
3. Will this be a gift to one child, or will I match it for the others?
Some families prefer to give equally to all their children, regardless of individual need. The thinking goes that if money is given to one kid, it should also be given to the others. If you fall into this camp, you have to ask yourself: Will this be a gift to one child only, or will I match it for the others? If the latter, how will I give them the extra money?
“Is there a way you can ensure you treat all your children the same way?” asks Rafferty. Ultimately, he notes, it is your money, so perfectly equal distribution is a choice, not a rule.
Scam Alert: Fake Traffic Violation Texts
Article written by Jessica McMaster and Christina Ianzito, AARP
Scammers are claiming that drivers need to either pay a fine or show up for a court hearing the next day.
On a Friday morning in early May, about 200 people arrived at the Denver County Courthouse, anxious about a text they’d each received the day before: an urgent alert claiming that they needed to report to the courthouse for a hearing the next morning because they had unpaid tolls or parking or speeding violations.
The text said they could either pay a small fine by scanning a QR code or show up for the court hearing.
The AARP Fraud Watch Network™ Helpline, which is based in Denver, received calls about the scam and quickly posted a warning on Facebook. Local TV stations picked up the story, too, so residents were alerted soon after the bogus notices were issued.
It’s been hard to gauge how many recipients responded to the scam texts: “We don’t know how many people scanned the QR code,” says Carolyn Tyler, public information officer at the Denver County Court, but it was likely far more than the number of recipients who showed up that morning.
Many who came for their supposed hearings were Spanish speakers, concerned that they were in legal trouble.
“It’s a pretty threatening text to receive,” Tyler says.
It’s also a pretty convincing elaboration on the toll-collection scam texts that surged last year. Americans have been flooded with these messages from criminals pretending to be electronic toll-collection systems, intending to steal data and money.
Other fraud watchers are sounding the alarm: The Better Business Bureau sent out a consumer alert, warning that “a new text message phishing scam is circulating, hot on the heels of the recent toll collection scams that targeted drivers.” The Federal Trade Commission released a similar alert in April, noting that the agency had “seen a spike in reports about this text scam in the last month.”
What the traffic violation scam looks like
Recipients receive official-looking text messages from criminals posing as toll agencies, motor vehicle departments or courts.
The message claims you owe a small fee for a toll, parking or traffic violation and, as in Denver, might say you need to show up in court the next day if you refuse to pay. Artificial intelligence tools allow criminals to easily replicate legitimate traffic violation notices and incorporate images of official-looking state seals.
Sometimes a fake case number is used, but the notices often look unusually generic, officials report. “They keep things very vague but detailed enough where they include things like statute numbers,” says Deputy Jake Navarro, public affairs specialist with the Bay County, Florida, sheriff’s office. The office warned the public in April that a scam message was circulating in the area about unpaid tolls or traffic violations, titled “Final Notice — Court Enforcement Action.”
Many of these texts include links or QR codes. If you click the link or scan the code, you might be directed to a payment page that steals your personal information, such as credit card numbers, passwords or other personal data. Tyler says Denver court officials believe that when recipients scan the QR code included in the recent texts that drew people to the courthouse, criminals gain access to their contact lists, and the scam then spreads to them.
The National Center for State Courts received reports of texts nearly identical to those in Colorado that surfaced simultaneously in eight other states: Arizona, Delaware, Maryland, Missouri, New Jersey, Oregon, South Dakota and Virginia.
This type of fraud, known as phishing, involves criminals impersonating trusted institutions by text or email to steal money or personal information. Scammers can obtain your cellphone number in myriad ways, including through data breaches, which are rampant.
The red flags for this scam
- Urgency. Tyler notes that two things are consistent with this scam: “an element of fear (you did something wrong) and a sense of urgency (act now to pay your way out of trouble). This should be your first red flag that something is wrong.”
- A lack of specifics. Often, “they will leave out details like your name. They’ll leave out the car, the make, the model, the VIN — all that stuff that should be included in this citation,” says Navarro.
How to protect yourself
Pause and reflect. Read the message carefully, and stay calm before acting.
Don’t click any links or scan a QR code in a message you receive out of the blue. Doing so can expose your personal information to criminals.
Contact the courthouse directly. Don’t call any number listed in the text. Visit the court’s website to find its official phone number if you want to verify the violation.
Is Moving to a Retirement Community the Solution to Rising Home Costs?
Written By Kristina Byas, Investopedia
As a result, adults ages 55 and up are considering retirement communities as a potential solution to rising home costs. But do these communities truly address the financial challenges they would encounter if they chose to remain in their homes?
The Cost of Staying at Home
Staying in your current home, or aging in place, can seem like the most affordable option at first, but there are various costs to consider that can add up over time. These expenses may fluctuate depending on the age of the home, the location, and the lifestyle you maintain.
Here are the key costs involved in staying at home:
- Mortgage/rent: Unlike rent, your mortgage can eventually be paid off, but both will be included in the cost of aging in place. Additionally, rent can be increased by your landlord.
- Property taxes: Property taxes vary by state and county and often increase annually.
- Home maintenance and repairs: Average home maintenance costs range from $4,000 to $22,000 annually depending on the home’s age, condition, size, location, and features.2
- Utilities: Utility costs, which include things like natural gas, heat, water, and sewer, can fluctuate, but the recent average is $583 per month.3
- Insurance: In 2025, the annual average cost of homeowners insurance is $2,601, but premiums tend to increase as the property ages.4
- Healthcare: As your healthcare needs change, you may see a need for additional medical care, such as an in-home health aide, which can cost about $78,000 annually.5
The Cost of Moving to a Retirement Community
Retirement communities offer a variety of amenities and services, but they also come with specific costs that can vastly differ depending on the type of community, its location, and the level of care needed. Here are the costs to consider when moving into a retirement community:
- Entrance fees: Retirement community entrance fees can be costly. Independent living entrance fees, for example, are $152,524.6 The good thing is you only pay this once, and it may be refundable up to a certain percentage if you decide a retirement community no longer aligns with your long-term goals.7
“The initial move-in cost or entrance fee can feel like a big expense. However, when compared to ongoing homeownership costs, many retirees find it’s actually a financially sound move over time,” Harris said.
- Monthly fees: Similar to entrance fees, monthly fees vary, but depending on the type of community you choose, they may be more affordable than aging in place. For example, assisted living costs about $5,900 per month, while nursing homes cost about $9,277 per month.5
“A retirement community often consolidates expenses into a predictable monthly fee that covers housing, utilities, amenities, and sometimes even meals and healthcare services. When you factor in home repairs, lawn care, and potential renovations for aging in place (like stairlifts or walk-in showers), the costs can add up quickly. While the upfront price of moving might seem high, the long-term financial predictability can actually be a relief,” Harris noted.
Other Factors to Consider
When deciding between staying in your home or moving into a retirement community, there are several important factors to consider beyond cost, including:
- Maintenance needs: Are you able to maintain your home (yard work, repairs, cleaning) as you age?
- Healthcare needs: Do you need specialized medical care that is more easily accessible in a retirement community? Or do you anticipate needing long-term care or assistance that could be offered in a retirement community but might be more difficult to arrange at home?
- Social interaction/community: How important is it for you to have a social network of friends and neighbors in your demographic?
- Lifestyle: Are you hoping to remain active as you age? Do you want easy access to parks, indoor and outdoor pools, tennis courts, and other recreational options?
“Beyond just the financial aspect, there are a few key things to consider,” Harris said. “Will staying at home keep you active and socially connected, or could it lead to isolation? If your health needs change, would your current home still be the right fit, or would you need to move later under more stressful circumstances? Does staying in your home align with your long-term financial goals, or would transitioning to a community help preserve your wealth?”
Skip the Summer Crowds at These Underrated U.S. Beach Getaways
Article written by Chloe Arrojado, AFAR
Pack your sunscreen, put on your sunglasses, and get ready to discover your next favorite beach.
With nearly 100,000 miles of shoreline stretching across the USA, there are probably quite a few beaches you’ve yet to visit. After all, certain coastal stretches get the fame, but the underrated (and thus less crowded) locations are often more worth your time. Before you hit the sands at a same-old spot, consider one of these beach getaway destinations across the country.
Gulf State Park, Alabama
Alabama is possibly the most underrated state when it comes to beaches. The Alabama Gulf Coast has more than 30 miles of beachfront, and Gulf State Park has 3.5 miles of soft white sand and clear waters reserved for relaxation and fishing. It also is home to Alabama’s only public pier in the Gulf of Mexico.
There are several different park entry points along the coast. The recently renovated Gulf State Park Pavilion provides access to three miles of beach, as well as restrooms and parking. If you’re looking for an off-grid coastal experience, consider Branyon Beach Access with its tall sand dunes on either side of a small boardwalk.
Freshwater adventures abound in the area. Head to the 900-acre Lake Shelby for some paddleboarding, swimming, or kayaking. Plus, the beach is surrounded by the accessible wilderness of the Hugh S. Branyon Backcountry Trail system, with 28 miles of paved trails in the 6,150-acre park.
Where to stay: The Lodge at Gulf State Park, a Hilton Hotel
Access to nature is the number one priority at the Lodge at Gulf State Park, a Hilton Hotel. Guests can borrow complimentary bikes to explore the surrounding miles of hiking and biking trails and then visit the nearby Gulf State Park Nature Center to learn about local flora and fauna. Rooms are stylish, modern, and bright. The property has an ocean-gazing infinity pool and three restaurants serving local seafood and craft cocktails.
Seal Beach, California
Walk along Seal Beach’s pier at sunset for a picturesque end to your day.
Photo by Lisha Riabinina/Unsplash
California’s Pacific waters draw plenty of tourists each summer, aiming to ride the waves of Huntington Beach—dubbed Surf City USA—or tour places like L.A.’s Santa Monica pier. But you can find lots of good beaches sandwiched in between the two destinations, including Seal Beach. This stretch of sand in the O.C. was named after seals that once basked on its shores, though nowadays you’ll more likely see people surfing, kitesurfing, or windsurfing. After exploring the beach town’s 1.5 miles of coast, head to its 1,865-foot pier, the second-longest wooden pier in California and a popular sunset spot.
Where to stay: Fairmont Breakers Long Beach
Twenty minutes west of Seal Beach is the Fairmont Breakers Long Beach. Once a glamorous coastal escape used by the likes of Elizabeth Taylor and Cary Grant during Hollywood’s Golden Age, the hotel underwent a multimillion-dollar refurbishment by Fairmont Hotels & Resorts in 2025. Now the 185 guest rooms and 22 suites are decorated in soothing neutral colors, with historic details such as plaster molding retained.
Grayton Beach State Park, Florida
There’s plenty of beach to go around in Florida. Among the most popular sandy stretches are South Beach in Miami, with its art deco buildings, and the white sands of Clearwater Beach near Tampa. Yet Grayton Beach State Park remains an overlooked seaside getaway, located in the northwest of the state, hugging the Gulf of Mexico.
The nearly 2,000-acre park has emerald green waters and dramatic sand dunes. Grayton Beach is a particularly notable destination for road-trip enthusiasts; its location along the 24-mile Scenic Highway 30A makes it a prime stop en route to exploring the new urbanism architecture and restaurants in Florida’s Walton County.
Where to stay: WaterColor Inn & Resort
If you’d rather not camp at one of Grayton Beach’s 59 campsites, drive five minutes from the park to the WaterColor Inn on Santa Rosa Beach. The property has 60 beachfront rooms and sits between a dune-backed beach and one of Walton County’s dune lakes.
Lanikai, O’ahu, Hawai’i
The Mokulua Islands are protected bird sanctuaries.
Photo by Miguel Manzo/Unsplash
You can escape the crowds in Hawai‘i by visiting during the spring or fall and renting a car to explore less-crowded beaches and local hangouts. Take, for example, the shorelines around Lanikai on O‘ahu’s eastern coast. Here, residential beaches and stretches beloved by windsurfers offer quieter alternatives for seclusion-seeking visitors.
Assateague Island, Maryland
Wild horses inhabit the protected beaches, pine forests, and salt marshes of Assateague Island.
Photo by Stephen Bonk/Shutterstock
Instead of spending the weekend shoulder to shoulder with crowds in Ocean City, travel to Assateague Island State Park and you can spend it among wild horses. The protected barrier island of the Atlantic coast of Maryland and Virginia is home to about 150 of them.
Although local folklore suggests that the horses are survivors of a 17th-century shipwreck, the more commonly accepted origin story of these unexpected island inhabitants is that the animals’ domesticated ancestors were brought over during the 17th century by mainland owners trying to avoid livestock taxation laws. Over time, their descendants reverted back to their wild state.
While you can often spot horses grazing along the beaches and dunes, park officials advise staying at least 40 feet away from the animals and warn against attempting to pet or feed them.
La Push, Washington
La Push’s three beaches are all located within Washington State’s Olympic National Park.
Photo by Brianna Parks/Unsplash
What Washington’s cloud-cast coastline lacks in palm trees and year-round sunshine, it more than makes up for with striking seascapes and powerful Pacific swells. The small town of La Push, in the upper northwest corner of the state, has three beaches—First Beach, Second Beach, and Third Beach—all with cinematic vistas.
First Beach, closest to town, is the only one accessible by road. Sign up for a lesson with La Push Surf Adventures and you’ll be hitting the (cold) waves along this crescent-shaped shoreline. Reaching Second and Third requires a walk along forested trails winding through old-growth evergreens.
Wide and sandy Second Beach has towering tree-covered sea stacks. Third Beach, accessed via a 1.4 mile hike from the road, feels even more remote. Often deserted, it has a 100-foot waterfall cascading straight into the Pacific surf at its southern end. Visit in the early morning, when the fog drifts through the trees and hangs heavy over the shoreline, and you’ll get a sense of why author Stephanie Meyer chose this hauntingly beautiful region as the setting for her vampire series, Twilight.
Entertainment & Education
Looking for something to read?
This list consists of the top 7 retirement books of 2025.
Source: Morningstar.com
On the Bright Side
Updated Retirement Insights Disclosure: This document is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions. It is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.
Investment Advisory Services offered through Trek Financial LLC, an investment adviser registered with the Securities Exchange Commission. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein.
Trek 25-234
