Want to help your adult kids and grandkids? Give them money while you’re still alive.

Many parents and grandparents want to support their loved ones financially, but the approach requires careful planning to avoid jeopardizing one's own financial security. The concept of "giving while living" involves transferring wealth to the next generation while still alive, rather than leaving it as an inheritance. This strategy can be beneficial for both parties, as it allows the giver to see the positive impact of their generosity and provides the recipient with timely support.

When considering "giving while living," it's essential to assess one's own financial situation and retirement goals. This involves evaluating expenses, income, and savings to determine a sustainable giving amount. Experts often recommend creating a budget that accounts for both current needs and long-term goals, as well as considering tax implications and potential impact on government benefits. By taking a thoughtful and structured approach, individuals can help their adult children and grandkids while securing their own financial future.

To watch next: interest rates and inflation trends, as they can affect the giver's investment portfolio and the overall cost of living. Additionally, monitoring changes in tax laws and regulations can help individuals optimize their giving strategy. It's also crucial to have open and honest conversations with family members about financial goals, expectations, and boundaries to ensure that everyone's needs are considered and aligned.

Originally reported by marketwatch.com. Trade-News adds analysis for finance & markets readers.