As your parents grow older, one of the toughest things you will have to talk about is money. Money is a sensitive topic on its own, and most of our parents grew up in a time where financial information was kept private. Plus, few parents appreciate being told what to do by their children.
While it’s an uncomfortable discussion, don’t wait. You’ll certainly want to talk before impairment becomes an issue, or you face a medical or other crisis.
Be respectful and let them know ahead of time what you hope to achieve by talking. Be specific; make sure they know your goal is to help them protect their assets as they age. Recognize that your request to talk may catch them off guard, so be patient.
Schedule time to talk in a private location where your parents will feel comfortable, away from distractions like grandkids or pets. Keep the mood friendly, helpful and upbeat. If you sense that your parents are feeling tired or stressed, end the conversation and reschedule. Be patient and know that this will likely require more than one meeting.
Let your parents know your initial goal is to help them gather important financial information, so ask them to assemble these items:
Make copies so you can keep them in a safe place.
Talk about how they pay bills and ask them to put together a list of what they pay on a regular basis. Most couples have one designated person who handles the finances, so this list is helpful for the surviving spouse if something should happen. Be sensitive to the fact that they may have debt you didn’t know about or fewer assets than you expected. If this is the case, reserve judgement and consider talking about that issue another time.
Talk about the plans your parents have in terms of long-term living arrangements. If they want to ‘age in place,’ make sure they can do so safely, and make modifications to their home (install grab bars in the bathroom, for example) when needed. Review their finances with them to help them learn about their options. Consult an Alaska USA financial advisor to talk about long-term care insurance or other financial alternatives.
Make sure you let your parents know that your goal in all this is not to learn the size of your inheritance, but rather, to make sure they have savings and insurance to meet their needs as they age, so they can continue to live independently as long as they want. Then make a date to check in with them regularly, at least annually.
The most important thing to remember is to show love and compassion during the conversation. At some point, your aging parents will need more help with their finances. When that day comes, you’ll all be glad you talked about it.
Did You Know?
About half of households age 55 and older have no retirement savings such as a 401(k) plan or an IRA.
Did You Know?
Long-term care insurance is not for everyone. The policies can be very cost prohibitive, and it can be difficult to even qualify.
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