Transcript
This is money talks with Chad Olivier.
Sponsored by Olivier Group.
Hi. I’m Chad Olivier, CEO and certified financial planner with Olivier Group. Today, we’re gonna tackle a conversation that many find difficult, talking to your parents about their finances. If you’re hesitant to approach the topic of money with your parents, you’re certainly not alone.
A recent study found that only thirty eight percent of Americans have talked to their parents about their current and future financial situation. In fact, nearly half of those surveyed would rather talk about funeral arrangements with their parents. It’s important to have these conversations, and it is vital to have them before cognitive decline or medical emergency occurs. Once cognitive or health is impaired, things are becoming more difficult for everyone to manage.
For any difficult conversation with someone you care about, it is best to lead with respect and empathy. Begin by emphasizing that you are there for them and that you’ll follow their lead. Don’t just swoop in and try to take over everything all at once. Instead, ask what they would like help with and take things step by step.
This might also be a good time to begin attending meetings with your parent’s certified financial planner. Some adult children are hesitant to ask to join these meetings, but let me reassure you that a good adviser will welcome your participation. They can even help to mediate some of the tougher topics you are hesitant to bring up to with your parents. Your first task should be gathering information about all of your parents’ financial accounts and holdings.
At Olivier Group, our clients have their own website that has all the important information including wills, tax returns, and any important documents. If your parents current advisor does not have this program, then I suggest putting together a file that you can store somewhere that is both safe and easy to access all important financial documents. Keep in mind, in order to have a legal authority to step in and help your parents make decisions about their finances, you need to have a few essential legal documents in place. Next, you’ll want to assess your parents’ household income and expenses.
Even if your parents aren’t ready for you to fully take over their checkbooks, it is a good idea to check their accounts occasionally for signs of fraud or financial abuse. You may also consider freezing their credit with all of the agencies. This could help prevent someone from going out and stealing their credit and borrowing in their name. And finally, reach out to a professional for help. Our certified financial planners can help navigate through these family situations. And that’s why money talks, the planning pays.
This has been money talks with Chad Olivier.
