It’s no surprise that unexpected healthcare expenses top the list of things that can quickly drain retirement savings. Yet, retirees run out of money for reasons that are less obvious too. Generosity - something most people wouldn’t even consider – can easily throw retirement plans off track. Poor money management can lead to cash flow problems for even high-income earners, and being overly generous with friends and family will deplete your retirement savings faster than you expect. 

Before saying yes to any requests for monetary gifts, you must consider how much retirement savings you have versus how many more years you may live. Every time you withdraw money from your retirement savings accounts you are reducing your account balance and future growth potential. By helping someone else you may unknowingly hurt yourself if you don’t take the time to stop, think, and do the math.

Besides, if a loved one constantly has their hand out asking for help, you aren’t doing them any service by coming to their rescue every time. Even if you are wealthy and can afford to give your child money for a new car or bail them out of a foreclosure, they need to learn to make smart financial choices and stand on their own two feet. Otherwise, how will they survive once you’re gone? If you a people pleaser, now is the time to practice saying the word no so you don’t run into financial difficulties in retirement.