FINANCIAL FOCUS
KRISTI TREVINO Financial Advisor Edward Jones
Don ’ t avoid ‘ TABOO ’ TOPICS with older parents
If your parents are getting close to retirement age , or are already retired , it may be time to talk with them about financial and aging issues , some of which may involve difficult conversations . For the sake of everyone in your family , don ’ t avoid these “ taboo ” topics .
You ’ ll need to be careful about approaching these subjects with your parents . Mention ahead of time that you ’ d like to talk to them about their future plans and reassure them that you want to understand their wishes , so their affairs will be taken care of as they would like .
If your parents are agreeable , choose a location comfortable for them and ask whom they might like to invite ( or not invite ). Then , think about how to open the conversation , preferably not with what they want to do with their money – this could be interpreted as your seeking information about your inheritance or being skeptical about their financial decisions . Instead , build a broad-based discussion about their vision for their aging years . A series of shorter conversations may allow you to cover topics more comfortably , one by one , rather than trying to solve everything at once . Try to address these areas :
• Health care – You ’ ll want to learn if your parents have established the appropriate health-related legal documents – a health care power of attorney , which gives someone the authority to make important
decisions about their medical care if they become unable to do so themselves , and a living will , which spells out the extraordinary medical treatments they may or may not want .
• Independence – As people age , they may begin to lose their independence . Have your parents considered any options for long-term care , such as a nursing home stay , or the services of a home health aide ? And do they have plans in place ? If they plan to receive support from family members , do their expectations match yours ?
• Financial goals – Focusing on the personal and financial aspects of the legacy your parents want to leave can be a valuable conversation . Have your parents updated their will or other arrangements , such as a living trust ? Have they named a financial power of attorney to make decisions on their behalf if they become incapacitated ? Do they have the proper beneficiary designations on their insurance policies and retirement plan accounts ? If you can position these issues as being more about your parents ’ control over their financial destiny , rather than “ who will get what ,” you ’ ll more likely have a productive conversation .
• Last wishes – You ’ ll want to find out if your parents have left instructions in their will about their funerals and last wishes . Express to them that you , or another close family member , should know who is responsible for making sure their wishes are met . Money , independence and aging can be sensitive topics . Don ’ t think you have to go it alone – you can enlist help from another close family member . Or , if you know your parents are working with a trusted advisor , such as an attorney or financial professional , you could see if they ’ d be willing to have this person participate in your talks . You might even be able to introduce them to one of your advisors .
In any case , keep talking . These conversations can be challenging , but , if handled correctly , can be of great benefit to your parents and your entire family .
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor . Edward Jones , Member SIPC
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