Parents will always have their children’s wellbeing close to their hearts. However, successful lawyer and hedge fund strategist, Sam Tabar, suggests that once children grow up and start working, their parents need to minimize the amount of financial support they offer them. While parents still feel that they need to help their children live comfortably in a safer neighborhood, eventually they need to stop paying their child’s bills altogether.
Fidelity carried out a survey that sought to identify how many millennials still receive support from their parents. Fidelity surveyed millennials aged 25 to 35 years and found startling conclusions. 47 percent of the people surveyed admitted to having received financial help from their parents to pay their expenses and bills.
Most of the financial support received helped pay for their mortgage or rent (12 percent), entertainment (14 percent), clothing (16 percent), cell phone bills (21 percent), utilities (14 percent), and groceries (20 percent).
Fidelity uncovered that all the millennials surveyed had saved an average of $9,100. This figure is higher than the U.S. national savings average that stands at only $400. This proves that millennials have the capability to meet most of their direct expenses without the help of their parents. Furthermore, half of the millennials surveyed had invested in both a retirement savings account and an investment account.
Planning for Retirement
Since millennials are already showing signs of financial sense by planning for their retirement, parents need to limit their support to plan for their own retirement. Many parents are leaving themselves vulnerable after retirement by supporting their children who already earn a steady income. It is high time that parents stop risking their future and have a viable discussion with their adult children about financial responsibility.
Sam Tabar is an accomplished New York state lawyer and a seasoned hedge fund manager. He studied law at Oxford University and later received his LLM from Columbia School of Law.
In 2000, Tabar started his legal career after being admitted to the New York State Bar. He has worked for major law firms including Merrill Lynch & Co., Skadden, Arps, Slate, Meagher & Flom as well as Schulte, Roth & Zabel LLP.
Sam Tabar is also a renowned hedge fund manager with extensive experience in Asian markets. Thanks to his time in Asia, he learned to speak fluent French and Japanese. One of the major firms he worked for in Hong Kong was PMA Investment Advisors.
During his stint at the company, he helped initiate various successful asset raising strategies, which later became quite lucrative. According to Crunchbase, Sam Tabar’s other interests include philanthropy and entrepreneurship. Sam Tabar has invested in a promising startup called THINX that helps African and Asian women.