If you’re in your 40s, your parents are probably getting close to their 60s or 70s. As you plan your retirement, it’s time to talk about to them about theirs.
LearnVest chatted with financial planner Mark J. Orr about financial concerns for people in their 40s. Orr reminded us that we’re going to be responsible for our parents in a few years. Now’s the time to have ‘the chat”:
Make a list of everything you need to discuss with your parents before you tackle these conversations — starting with the money moves you’ve just made for yourself. Do they have a will, durable health care and power of attorney set up? What about long-term care and life insurance? Where are they planning to live, and who will tend to them, particularly if they’re out of state?
“Then set up a binder, so that all of their insurance policies-like life and homeowner’s insurance-are in one place,” suggests Orr. “And do the same with their recurring bills and financial accounts.”
And just as you’ll want to make sure that your beneficiaries have access to your digital files, make sure you know how to log in to your parents’ online accounts. This is especially important if they have dementia or generally lack financial acumen, in which case you or your siblings may also consider becoming trustees to their estate, so you have the ability to take control if need be.
You’ll need to find the right time to bring up the issue. It’s better to chat in person than over the phone. Let the family know in advance the topic might come up.
If you get push back about the topic, postpone it to a later time, but don’t drop the discussion.
5 Money Moves You Should Consider Making in Your 40s [LearnVest] Photo by OakleyOriginals.