A gift from your parents could jeopardize their potential retirement earnings, and could eventually cost you too.
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Forty-five percent of baby boomers have nothing saved for retirement, according to a 2019 study by the Insured Retirement Institute, a financial services trade group.If your parents aren't on track for retirement, accepting a monetary gift from them can create more financial problems than it solves.BEFORE TAKING A GIFTA gift from your parents could jeopardize their potential retirement earnings, but it could eventually cost you, too, if you're their financial plan B for their golden years.To preserve quality of life in retirement, financial planners generally recommend saving enough to replace about 70 percent of preretirement income.Parents will be required to file a gift tax return for any amount above $15,000 per parent.A family loan could be a win-win: a low interest rate, no credit check and flexible terms for you, and potentially even a profit for your parents.With a good credit score (690 or higher), you can generally qualify for better interest rates to refinance student loans, transfer debt to a balance transfer credit card or consolidate other loans.
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