Menu

Mike Loo, MBA
Vice President of Investments

"My mission is to make a meaningful impact on the lives of my clients and the people they love. I help families make informed decisions with their money and build a strong financial foundation for both themselves and their next generation."

MIKE LOO

With over 20 years of experience in the financial services industry, Mike Loo has spent the majority of his time committed to learning all aspects of financial, tax, and estate planning, especially in the areas of wealth accumulation, distribution strategies and wealth transfer strategies. In this very competitive industry, Mike helps clients understand that all financial areas are equally important to reaching their goals. He believes in a complete overview approach for all of his clients.

Mike entered the financial services industry in 1996 with an internship at A.G. Edwards. He then continued on with internships at State Farm Insurance, Merrill Lynch, and Pension Specialists later that year. Upon graduating from the University of California at Davis in 1997 with a dual concentration in Consumer and Managerial Economics, he accepted a job with Franklin Templeton Investments.

Mike took a break from the corporate world in August 2000 to attend the University of Southern California’s (USC) Marshall School of Business, a top tier business school ranked in the Top 25 schools in the nation, where he earned his MBA in Finance in 2002. Upon graduating from USC, Mike accepted a job with Trilogy Financial. Today, he functions as a Vice President of Investments at Trilogy and an Investment Advisor Representative for Trilogy Capital, Inc.

Originally from the Bay Area, Mike now resides in Irvine with his family, but he has a large number of clients in the Bay Area whom he helps with strategies regarding their company stock options.

 

Mike's Client Relationships

Mike supports a wide variety of clients, but here are some of the groups he has built his practice around.

Whether we attribute it to a decline in marriage rates, poor job prospects, student loan debt, technological improvements, or generational shifts, times have certainly changed for young adults. One major topic which my clients bring up centers around their adult children moving back home. While this was not a common conversation ten years ago, I come across this topic more often nowadays. I’ve heard statistics such as “a third of young people, or 24 million of those aged 18 to 34, lived under their parents’ roof in 2015”, and look at it as my job as an advisor to provide advice on how to best navigate through this new landscape.(1)


Within this topic, a common question that I try to help my clients answer is this: Should I charge my adult children rent if they move back home? What I’ve found is that every situation is different, so what may work for one family, may not work for another. However, in this article, I hope to provide a framework to consider when trying to answer the question.

Setting Expectations
Depending on your own experiences and values as parents, as well as the specific circumstance of your adult child, you may insist that they live at home rent-free. For example, if your adult child is being responsible by saving a good share of his/her paycheck for a house down payment and you want to reward that responsible behavior by letting him/her live at home rent-free, there’s absolutely nothing wrong with that. For other parents, such an assistance for an adult child does not make sense, and no matter what the circumstances, would believe it only right to charge for rent if living at home.

No matter where you fall on this spectrum, it is important to set expectations with your adult child. For instance, if you decide that it is out of your comfort zone to charge your child rent for living at home, then what other mechanisms can you put into place to make sure he/she does not get too comfortable? In my experience, I’ve seen parents create timelines and goals, as well as make it crystal clear that the adult child must still pitch in, in other ways such as chores or errands. While it may be a tough conversation initially, imagine the alternative. What if your child gets too comfortable living at home and would rather stay at your “hotel” rather than spread their wings in the real world!

Whether rent is being paid or not, the adult child will have a particular reason as to why they want to or need to live back at home. If they are simply being lazy and are not making an effort towards adulthood, it is crucially important to provide clear expectations. As parents, you want to always help and support, but you never want to enable. Therefore, in this example of being lazy, a parent could set expectations of applying for X number of jobs per week, or something similar.

How Much To Charge For Rent
If you do decide that it makes sense to charge your adult child rent, how much should you charge? In my experience, parents usually charge well below market rates. As parents, you want to help your child out, but you also want to build up their personal finance awareness. How much you charge will also be highly correlated to what your daughter or son can afford, and could change over their time living with you. By having an open conversation and being clear about why you will be charging them, it should not be hard to fall on a number that makes sense for your family.

Alternatives
There are also other ways in which your adult child could pitch in that could be alternatives to paying rent. Such alternatives could be household chores or errands, cooking meals, or even helping parents with their own work. In addition, it could make more sense to have your adult child pay for other household expenses (instead of rent), such as internet, tv, or groceries.

Another alternative could be to make their stay at your home contingent on them depositing money into their own retirement account. This way, you are teaching them how to save and plan for the future.

Finally, if you want to help them grow personally, you can make their stay at your home contingent on community service or volunteering. This is a win-win as well!


Budgeting
This experience can also be thought of as a great teaching moment for your child. Specifically, parents in this situation are in a unique position to extol the virtues of budgeting and personal finance when their child needs it most. If the adult child in your household has to pay you rent and decide how to allocate their small-to-no income, they will quickly learn how to budget. As a parent, you may decide to get creative and instead of using the rent money for expenses, stash it (and maybe even match it) into a savings account for your child. They will be happily surprised with a small nest egg to leave home with!

Other Considerations
Other considerations that I make sure clients consider is their own budget and retirement goals. If your adult child is going to come back home and live there, you’ll want to make sure that adding another adult to the household does not negatively affect your own goals. Because you’d anticipate that household expenses will go up, you must make sure you budget for them, based on your expectations and timeline with your adult child. Again, by having an open conversation with your adult child, I am confident that a reasonable game plan can be implemented with success.

Having this conversation is not always an easy one, but I hope that the considerations above help provide better ways to think about it. If you’d like to discuss your situation further, call my office at (949) 221-8105 x 2128, or email me at This email address is being protected from spambots. You need JavaScript enabled to view it..


(1) https://www.census.gov/library/stories/2017/08/young-adults.html

THE LATEST FROM MIKE



1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  

CALL MIKE DIRECT AT
(949) 221-8105 ext. 2128
  Strategic Partners

ASK MIKE A QUESTION

 

 

Go to top