Insights + Resources

Helping Your Parents Manage Financial Tasks

Jun 26, 2019

Broken Puzzle Pieces
How can you make things easier on them later in life?

Worldwide, the number of people aged 60 and older is growing.By 2050, this demographic will be more than twice as large as it was in 2015.¹

Some of these seniors could face a financial test.Will they be able to look after their investments or financial matters at age 80 or 90 with the same level of scrutiny they exercised earlier in life?

Your parents may be facing such a challenge.If you sense that they are not quite up to it, then a conversation about financial issues could be in order.

If you need to have this kind of talk with your parents, it is best to proceed gently, while acknowledging some potential risks that may heighten if the status quo persists.

Start by talking about your own financial matters or investments.

Ask your parents for their thoughts on this-or-that topic – an upcoming car purchase, a type of insurance coverage or investment, or their approach to saving or investing when they were your age. Start this conversation while you do something else together, something relaxed or pleasurable. A one-on-one conversation is best, with an informal tone. A formal discussion involving multiple family members might come across like some kind of financial intervention and may not be appreciated.

Alternately, if you have made or updated a will or created a power of attorney, you can talk about your decision to do so and ask your parent if they have either of these items. That could lead to a conversation about family wealth or eldercare.

Helpful and gentle suggestions can follow.

If your parents are neglecting to open account statements, you can offer help monitor their accounts by asking to register with the bank or investment custodian, so that you may receive copies of these documents. If you sense bills are past due, you can suggest setting up automated payments, referencing how useful they have been in your own financial life.

There can be resistance to such suggestions, of course. One possible way to counter that resistance is by expressing how much you care about their financial well-being, their wishes, and their quality of life. How would they feel, for example, if a financial error or oversight they made resulted in more income tax or a decline in the value of their accounts?

By treating your parent with love and respect and communicating openly, you can let them know that you are ready to provide the help needed during this time of life.

More Insights

Apr 19, 2021

Recently, you may have seen reports that a record-low number of homes are available for sale—roughly 1.03 million nationwide. If you compare that to the average number of homes for sale during the past 10 years, it’s no surprise that many hopeful homebuyers are having issues securing a home. But why exactly is the housing … Continue reading “Forces Driving the Housing Market”

Apr 19, 2021

It can be exhausting trying to keep up with the whims of Wall Street. Lately, the financial markets have been fixated on federal taxes and what may be proposed on Capitol Hill in the weeks and months ahead. Wall Street’s focus on taxes closely follows its attention on the 10-year Treasury yield. And it wasn’t … Continue reading “The Whims of Wall Street”

Apr 16, 2021

President Joe Biden introduced the much-anticipated American Jobs Plan, which outlines an approach to spend roughly $2.2 trillion on the nation’s infrastructure and other projects. As part of the legislative process, the Biden administration also laid out a proposal for paying for the domestic investment. The plan includes raising the corporate tax rate to 28% … Continue reading “Paying for the Infrastructure Bill”

Apr 14, 2021

Financially, many of us associate the spring with taxes – but we should also associate December with important IRA deadlines. This year, like 2020, will see a few changes and distinctions. December 31, 2021, is the deadline to take your Required Minimum Distribution (RMD) from certain individual retirement accounts.

Apr 12, 2021

There’s an old Wall Street maxim that says, “markets climb a wall of worry.” And these days, there’s plenty to worry about with the trend in long-term interest rates and bonds.

Insights + Resources >