Michael Milazzo photo

Michael A. Milazzo, CLU, ChFC

Registered Principal

 

The Meridian Financial Company

3350 Club Villas Dr SE, Unit #1303

Southport, NC 28461

 

Phone:  631-979-4223

Fax:      910-854-0002

 

Email: meridian@ae.cadaretgrant.com

Website: www.merfinco.com

May/June 2025

A Rope or Quicksand?

A Rope or Quicksand

With today's home prices, you may be considering helping your child with a down payment for their first home. It's a generous gesture that can be just the pull-up they need. But the decision shouldn't be taken lightly. Without forethought, a financial windfall of this amount might sink some offspring into a hole of bad financial decisions. Here are some things to think about:


Their Financial Readiness
Is your child financially prepared for homeownership? It's not just about the down payment. They need to be able to manage monthly mortgage payments, property taxes, insurance, and maintenance costs. You might want to have a heart-toheart about their financial habits.


Structuring the Agreement
Consider how to structure the agreement. Will it be a gift, or are you expecting repayments? How your agreement is structured can help ensure your financial assistance doesn't lead to complications later.


You'll want to consult a trusted financial advisor or attorney to work out an approach that aligns with your intentions and keeps things clear between you and your child. And ask about possible tax implications.


Finally, keep communication open. Buying a home is a big decision, and your child should feel comfortable discussing everything from budget constraints to future plans with you.


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Securities and Advisory Services offered through Cadaret, Grant & Co, Inc, a Registered Investment Advisor and Member FINRA/SIPC. The Meridian Financial Company and Cadaret, Grant & Co., Inc. are separate entities. I am registered to sell Securities in the following States: NY, NJ, PA, NC, FL, ID.
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