Struggling with the fear of becoming a financial burden for my children in their later years, yet eager to support them in achieving home ownership
In the pursuit of financial security and independence, 60-year-old Janie has embarked on a journey that involves setting aside money regularly in a savings account and exploring the world of DIY investing. With a desire to help her children financially, particularly with property and childcare expenses, Janie's focus is on creating a solid financial foundation that will ensure she can support her loved ones and not become a burden in her old age.
Janie's investment portfolio includes a stocks and shares Isa, and she has been diligently investing a total of 150 euros per month over 18 years. This strategic investment, coupled with an understanding of the risks and benefits, thanks to her adviser, could potentially amount to around 38,960 euros at 2% interest or 57,420 euros at 6% interest.
Janie's efforts are not isolated. According to a survey by Octopus Money, half of people are concerned about funding their living costs in old age, and 45% are holding back on gifting money for this reason. The average yearly cost of care home costs, as per Octopus Money, is a staggering £80,000. With 60% of independent nursing homes now charging more than £1,800 per week, the need for financial planning in old age is evident.
Kristian Manton, a chartered financial adviser at Octopus Money, warns of a potential "great wealth transfer on the horizon," but also highlights a "perfect storm of uncertainty" if families don't discuss their financial plans. Manton emphasises the risk of families having to sell property to fund care costs, with these costs quickly eating into inheritances.
Janie's approach to managing her money extends beyond investing. She is working across four jobs, including her own divorce coaching business, to build multiple income streams. This strategy not only provides her with financial security but also allows her to help others in similar situations.
Janie's concerns about the financial challenges faced by younger generations, particularly high rents hindering savings for a deposit, resonate with many. According to recent data, as many as 60% of Gen Z and 56% of millennials rely on future gifts or inheritances to meet their life goals, including half who say they need them to buy a home.
In a world where financial security and independence are increasingly important, Janie's story serves as an inspiration. Her proactive approach to managing her money, seeking advice, and investing wisely demonstrates that it is never too late to take control of one's financial future.
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