4. Disclose your digital footprint
These days, much of your financial information is stored online rather than on paper or in file cabinets. Karen E. Van Vorhis, a certified financial planner in Norwell, Massachusetts, says that if you receive financial information electronically, you should be triple careful to keep your trusted adult children fully informed of this. said there is a need. They need to know what financial information is, where it is stored digitally, and how to access it.
5. Introducing the team
You may or may not have a team of professionals directly or indirectly helping you with your finances. This may include financial planners, accountants, real estate attorneys, etc. Frank Summers, a certified financial planner in Charlotte, North Carolina, says it’s important to at least let adult children know who they are and how to contact them when dealing with any of these things. increase. Equally important, he says, is providing the child’s name and contact information to the adviser, along with specifying what information is allowed to be discussed. A copy of the power of attorney should also be kept on file.
Hannon says adult children should meet with their financial advisor in person, ideally with you. “It helps make money easier and part of the family conversation,” she says.
6. Rethink your income sources
Adult children don’t need to know exactly what your income is, but they do need to know where it came from. That’s why it’s important to review all sources of income, says Kimberly Palmer, a personal finance expert at NerdWallet, a personal finance app aimed at simplifying money management. By at least making your children aware of your source of income, you can help them understand early on how stable you are financially and whether you need financial help from them.
7. Discuss it before you need it
Don’t wait until an emergency arises to discuss money with your children. Please be well prepared and include all children in the meeting. Palmer says schedule the meeting at a time convenient for everyone. Meetings can be in person or via Zoom, but should not be held on someone’s vacation if possible. Weekends are usually best. Before the meeting, give the children an overview of what you want to share. It is wise to schedule recurring meetings as needed before the meeting ends.
8. Explain if you have enough savings
Your adult children need to know if they will need to support you financially in the future. It’s no surprise, says Steven McGard, a certified financial planner in Columbia, South Carolina. Again, you don’t have to publish every book, but it’s important to give enough notice in advance. For example, telling them you have a solid financial plan “goes a long way toward alleviating their anxiety,” he says. On the other hand, telling them in advance that they may need financial help gives them time to plan for it.
9. Specify Advanced Medical Plan
Summers says there’s nothing you can do for yourself or your children like having a clear plan for advanced medical care, long-term care, or assisted living. Additionally, you need to know if there are funds set aside to pay for this cost and how to access them.
10. Set up fraud alerts
This will ultimately save you a lot of stress and money, says Hannon. If something seems wrong with your account or investments, all you need to do is give your children and your financial advisor your exact contact information. Seniors are often victims of financial fraud, and taking these precautions can help deter fraud.
11. Consider tax implications
This is something many people fail to do, and is usually more important to wealthy people. However, considering and accounting for the tax implications of spending later in life can have a significant impact on your estate and what you leave behind for your children. Paul Monax, a licensed financial planner in Littleton, Colorado, says it’s good to give them a basic understanding of this.
12. Say what you want – but listen to what they want too
Whether you call it philanthropy or legacy, this is how you want your money to help others. Your children need to know this. Moreover, according to Hannon, the argument goes that the money you might have intended to leave for your children through real estate could help pay for a home or college tuition, making it even more useful for children today. It may provoke further controversy indicating that
