The Bank of Mom and Dad (BoMaD) isn't new as kids have been borrowing or receiving gifts from parents for years. But a new study by Legal & General, a U.K.-based financial services firm and global investor with $1.27 trillion in assets, has found a new twist, one that "hurts" parental retirement savings.
The L&G study found that one in five U.S. homeowners received gifts or loans from family to help them buy their home "supporting the purchase of $317 billion worth of property across America in 2018." The study states that if BoMaD were a real lender, it would be the seventh largest in the United States. In fact, the total amount loaned out by BoMaD is estimated to be $47.3 billion, just less then fifth-ranked U.S. Bancorp.
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