If the security and well-being of your family is important to you, you are likely concerned about their finances as well. Aging parents and grandparents are not always aware of new ways of saving and investing that may help them. Trying to help out can be stressful but also very rewarding for everyone.
Many elders in the family may have a plan about retirement and post-retirement. However, some don’t have all the specifics and “what-ifs” worked out. It is important to communicate and offer advice to ensure they are making wise decisions. Whether it be building an investment portfolio or simply making some changes to retirement plans, it can make a major difference.
Tips on Managing Finances for Elderly:
Open the line of communication: Start the conversation sooner rather than later, don’t wait for them to bring it up down the road sometime. Offer suggestions, and explain your own financial strategy. Ask for input and answer all questions they may have about complex topics.
Ask for outside help: This may be impossible to do it all on your own. You may want to meet with a financial advisor before approaching elderly family members. You may also ask if they would like to get help from a professional or another family member as well.
Don’t force it: If they don’t want to make any changes just yet, be patient. Who knows in a few weeks, months, or years they may come around. Don’t attempt to rush into anything, either. It is, after all, their money you’re talking about.
Start with the basics: Begin doing your finances together slowly. Start doing basic monthly financial plans together before adding any complex matters. This may include balancing checkbooks, making monthly budgets, and looking over bills. This can make the process a whole lot easier and more natural.
Explain all risks and benefits clearly: Anything to do with the stock market may be a red flag in the eyes of our aging parents and grandparents. Offer a variety of options including ones that are most attractive for retirees. Some examples may be Municipal bonds, Treasury bonds, Fixed Annuities, or Money Market accounts.
Build a support system: Try to get the whole family involved in taking their finances into their own hands. That way, it becomes a group effort and takes some of the pressure off our retiring parents/grandparents.