Critical Financial Discussions
Significant differences can exist between generations when it comes to discussing finances. For instance, according to The Cashlorette, only 8% of Americans aged 53-71, the Baby Boomers, discuss salary with their families whereas 63% of Americans ages 18 to 36 say they discuss salaries with immediate family. Now with the Baby Boomers aging, it is often difficult for many to talk with their children and to share information about the family finances. However, if you have aging parents, you probably want to do all that you can to help them navigate the difficult financial issues facing the aging.
The time to discuss money issues with aging parents will come much sooner than most ever expect. If you find yourself at that time in your life will you know what questions to ask? Now is the time to educate yourself so you can prepare to help your aging loved ones be prepared.
Below are four critical subjects financial advisors typically suggest discussing with your aging parents. While you may think that you have a good grasp of each, visit Gentreo, www.gentreo.com, to learn more about what resources might be helpful to answer most if not all of their initial questions easily. Every situation is different, but starting discussions can help your family start down a path you and they choose.
Legal Services – Health Care Proxy or Health Care Power of Attorney, Power of Attorney, Will, Trusts and more. Do your parents have all or any of these? Are these documents stored in a safe place that is easy to access 24/7? Proper papers and decisions can
be executed by learning about what are the decisions to be made, options, when to make them, and who to get support from when choices must be made.
Healthcare - As your parents age, it is important for your parents to know what health insurance and coverage they have and what they might need if or as their financial situation changes due to retirement. For instance, Medicare is bare minimum health care coverage and adding supplemental policies can often be necessary. Talking to your parents early regarding the possible need for long-term care and paying for that care is also extremely important. Letting your parents know now that you can be counted on for healthcare help in the future may also be a good step now while no concerns exist and if they already do, have a list of those concerns, medications and conditions.
Income and expenses - Income sources, expenses and outstanding debts should be discussed to ensure your parents have the financial wherewithal to afford their current and planned lifestyles. You may also want to inquire about having the authorization to attend any meetings regarding their financial business. It might also be a good idea to talk to them about financial planning and recommend consulting a professional financial planner.
Financial Records - Bank account statements, investment portfolios, property deeds, bonds, IRAs, car titles. Documentation is critical whether it is electronic or hard copies to ensure your parents know all that is important regarding their overall financial well-being. More and more seniors are discovering online banking and other financial services that involve accessing information online, this means log-in information needs to be kept as well and updated regularly.
Summary– Discussing financial issues with parents is probably not an easy subject, but one that typically needs to happen as your parents age. Visit Gentreo.com for more information and tools to help your family.
Gentreo is not a law firm or a substitute for a law firm or attorney or an attorney’s advice or recommendations.