Helping parents with their finances when they choose to retire
Do you think you have the knack for offering financial advice to others? Do you think you have it in you to simplify complicated financial responsibilities of others? If yes, then your parents, ideally, shouldn’t have to turn to a financial advisor when they’re retiring. Retirement comes with its fair share of rosy dreams as well as difficulties like fast erosion of wealth, children fighting for property etc. Make sure you’re helping your parents sail through these difficult times. Here are a few ways of helping parents with their finances when they choose to retire. You necessarily don’t have to fund their post retirement life– just giving the right advice will help.
Ask them about their finances
It is important for you to secure an idea about their finances before you’re actually advising regarding the same. Your first responsibility would be to find out if they have saved enough for their retirement or not. It would be best on your part to access the online calculator to figure out if your parents have saved sufficiently for their post retirement life or not. If you find that they haven’t saved enough then try to find out if they have enough time to reach the goal or not. You can even go on to invest a part of their funds in the riskier investments that have possibilities of yielding higher returns. If they don’t have sufficient savings then you should be prepared to provide them financial support during their retirement.
Do they have their debts cleared?
Retirement is a time when your earning diminishes and health expenses go up. Debts are the last thing in the world you would want to deal with, during your retirement. So, if your parents have outstanding debts you can ask them to check out the major debt management options in the form of the best debt consolidation loans, debt settlement loans among others. If you qualify for any of these debt management programs then the debt specialists would negotiate with your creditors to bring down your outstanding debts to less than half of what you owe. So, do educate yourself more about these options if your parents’ debts are spiraling well out of control.
Find out about their bank accounts
Secure details of their bank accounts. Find out if their executor (it might be you or anyone else they trust) is listed in their power of attorney or not. There are times when your parents make the mistake of naming their spouses in the power of attorney without realizing that the person, thus named, will also age along with him/her. As they start becoming older, they need someone younger (but with the prudence of handling finances) to access their accounts at regular intervals. You might as well find it a bit awkward to ask your parents to name you in the power of attorney but you should prudently suggest they should, at least, consider a young adult who they trust.
Find out if they have sufficient health insurance cover or not
As already noted above, healthcare remains one of the major expenses after retirement. Find out if they have sufficient health insurance cover or not.