How to Talk Honestly About Money With Your Family
Discussing financial topics with aging parents can be uncomfortable, but it's so important.
Talking about the specifics of how your adult parents are going to handle aging and the related financial implications, like how to afford retirement, can be challenging, to say the least. That might be why so few parents and adult children have these kinds of frank discussions. But glossing over the details when everyone is still healthy and fiscally sound can lead to a much more difficult conversation later - after a crisis hits.
When it comes to covering living expenses in retirement, 4 in 10 parents have not discussed their plans in detail with their children, according to the recently released 2014 Fidelity 2014 Intra-Family Generational Finance Study. About 15 percent haven't had any kind of conversation on the subject. The numbers are similar for other tough topics, including health care and elder care expenses, wills and estate planning. The study included 1,058 parents and 159 children older than age 30; to qualify, parents had to have investable assets of at least $100,000.
Parents tend to say they want to wait longer to have these conversations, until after they are retired, while adult children are eager to address these topics before their parents' retirement. Adult children also say they think these conversations will be upsetting, and parents say they don't want their children to "count too much on their future inheritance" - more reasons for delaying or skipping the talks altogether.
Dwight Lee and Craig Fein are LPL Financial Consultants located at NuVision Federal Credit Union. If you have any questions or would like to make an appointment, please call Dwight Lee at 714.375.8227 or Craig Fein at 714.375.8222.
Representatives are not tax advisors or legal experts. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney. Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through Kinecta Financial & Insurance Services, a subsidiary of Kinecta Federal Credit Union. CA Insurance License #0E24631. Insurance and investment products: 1) are not NCUSIF insured; 2) are not obligations of or guaranteed by the credit union or any affiliated entities; 3) involve investment risk, including possible loss of value. Kinecta Financial & Insurance Services and Kinecta Federal Credit Union are not affiliated with LPL Financial. Some insurance products available to California residents only.
Connect With Us
NuVision Federal Credit Union
7812 Edinger Avenue
Huntington Beach, CA 92647