March 25th 2024.
Thelma Brown, a retired school teacher, was always a bit unsure when it came to managing her finances. Luckily, her son, Jerome Haynes, stepped in to help her out. He taught her how to create a monthly budget and even made a written spreadsheet for her to use. With his guidance, Thelma was able to keep track of her income and expenses. She even started saving money and now has her own savings account.
Jerome recalls, "My mom didn't have much knowledge about finances and ended up taking on more than she could handle. That's when I decided to move her closer to me and help her out. We sat down and created a budget for her to live by. We also discussed the importance of life insurance and made sure she knew where all her important documents were located in case of any emergencies."
According to Herb White, a certified financial planner, talking to aging parents about money can be a challenging task. It brings up uncomfortable questions such as who will inherit what after the parents pass away, who should handle their finances, and what assets they have. Parents also have a fear of losing control over their own finances and lives. To ease some of these worries, adult children can involve the aging parent's trusted advisor or attorney in the conversation and have a clear agenda of topics to be discussed.
"One way to approach the conversation is to remind your parent that you care about them and want to ensure their financial stability. You want to make sure their needs are met and their wishes are respected," advises White.
He also stresses the importance of having these conversations sooner rather than later, so that they don't have to be rushed during a family crisis. Some of the topics that can be included in the discussion are required minimum distributions of retirement accounts, Medicare policies, long-term care options, and protecting against investment scams.
For those looking for more information on this topic, White recommends checking out books such as The Retirement Savings Time Bomb, But What if I Live, and Retire a Winner: Your Complete Retirement Planning Road Map and Social Security Essentials. These resources can provide valuable insights and guidance for both aging parents and their adult children.
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