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Managing Your Parents' Money and Discussing Tough Topics

Managing Your Parents' Money and Discussing Tough Topics
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By    |   Thursday, 21 December 2017 11:23 AM

Money management is a sensitive subject to broach with your aging parents. Just remember, discussing these tough topics early on can avoid financial setbacks for them and possible conflicts among children during a difficult time.

Retirement or upcoming retirement may also be affected by your parents’ health, which can cut deeply into their finances. It still doesn’t make the conversation about money any easier.

Some people might believe their parents have been handling their financial situation just fine, only to discover problems later. It’s best to talk about it with them whether or not they are in good financial standing.

Here are seven ways to help manage your parents’ money while discussing tough topics:

  1. Bring up the subject early, now if possible. Acting before aging issues turn into a crisis provides better solutions for everyone involved, according to Merrill Edge. It also makes it easier to maintain communication about their finances through the years.
  2. Use sensitivity so they can open up about their financial and medical needs. Let your parents know you are there for them to help with their concerns. You become a collaborator, instead of someone taking over, and can slowly discuss topics separately.
  3. Ask about their plans for retirement. Find out if they want to downsize, move into a retirement community, or stay where they are. These options may change their financial situation, so you can help them decide on the most affordable choice, LearnVest notes.
  4. Discuss long-term care. A good long-term care insurance policy allows affordable medical services, such as in-home care and assisted-living facilities. It’s less expensive the earlier people get long-term care insurance.
  5. Review their investments. Financial objectives change over time, Bankrate reports. Some investments might be too conservative or too risky depending on their age. A certified financial planner can gear them toward a financial portfolio that fits their best interests.
  6. Know your parents’ debts and options. Are they carrying credit card or other debts? This can cut into their retirement plans. A financial advisor can help in reducing debt. Social Security benefits are options. They may want to file early or delay collection for larger payouts.
  7. Talk about a will, living will, and power of attorney. If they have a will, make sure it has been updated to their wishes. A living will can be a touchy subject to mention, but it helps in making health decisions if they become incapacitated. A power of attorney allows you or someone your parents trust to make legal and financial decisions for them if they are unable to give their consent, according to Care.com.

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Money management is a sensitive subject to broach with your aging parents. Just remember, discussing these tough topics early on can avoid financial setbacks for them and possible conflicts among children during a difficult time.Retirement or upcoming retirement may also be...
estate planning, elderly, living will, parents
432
2017-23-21
Thursday, 21 December 2017 11:23 AM
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