Getting together with family over the Holidays presents a unique—albeit delicate—opportunity to discuss finances with your aging parents. We live in a society where asking people about their money is considered rude. Many families are secretive about their savings.
Despite the discomfort, consider how caring for your parents financially might impact your own future financial well-being. Regardless of family dynamics, all adult children should get a basic understanding of their loved ones’ financial situation, so that:
- You can plan for your financial future
- You make sure they are not victims of senior financial abuse
Here’s how I suggest starting the conversation:
Mom and Dad, I want to talk to you about a sensitive subject that’s important to both of us. I’m working with a financial advisor, and they asked me this question:
Will you ever be in a position to have to care for your parents financially?
I didn’t know how to answer! I love you and want to make sure I’m prepared for whatever you might need. My advisor asked me to find out the following:
Do I need to be prepared for you to move in with me?
Do you have long term care? If not, have you considered looking into it?
Encourage your parents to update their wills and estate plan, and meet with an attorney to discuss tax planning and wealth transfer. Make sure they have a living will, and ask for durable power of attorney so that you can carry out their deepest wishes. If you need to find a reputable financial planner, visit the Financial Planning Association’s Find A Financial Planner at www.fpanet.org and access the Financial Industry Regulatory Authority’s (FINRA) BrokerCheck® at www.finra.org.
If you have additional questions, email DGaynes@intfingroup.com or call my office to set up a time to talk at 770-353-6350. Happy Holidays!