Retirement and finances are two of the most awkward yet important topics that people should talk about. Sadly, the majority of adult kids have not had this kind of conversation with their parents. Hopefully, you won’t be one of them.
Retirement in Union, SC should be an exciting thing. This is the time for your parents or loved ones to enjoy, relax, and pursue their interests. But this is difficult to do if they do not have the financial capability to fund their leisure, travel, or even day-to-day expenses.
So, how can you help your loved ones prepare for their future? Here’s how you can start.
Be Prepared
Prior to initiating conversations with a parent, you should have a list of questions in mind. It pays to do your research on retirement plans, current events, assets, health insurance, and the like. By asking questions, you can better assess your loved one’s financial situation. Some of the things to ask include important documents, titles/deeds, mortgage information, loans, bills, pension statements, and bond certificates. It is also important to ask whether or not they are speaking with an attorney or an expert about their retirement plans.
Approach the Subject Respectfully
Any topic related to money or savings is a sensitive matter. So, always be calm when conversing with your loved one. Revealing your finances to anyone, even to a family member can be embarrassing. So, before asking any questions, take a moment to empathize with your loved one. Be respectful and express your willingness to help them retire happily.
Ask About their Vision
You can begin by asking about their dreams or goals after 60. Do they see themselves traveling around the world or doing business? Do they want to live in a senior assisted living community? Whatever their answer, do not judge even if they say that they haven’t thought about their future or started planning for retirement at all.
Set the Right Tone
You don’t want to sound authoritarian or accusatory when speaking with your loved ones. Set the right tone, and they will be willing to listen. There are different ways to bring up this topic. You can share something you’ve read or heard in the news about retirement first before asking them a question. You may also share personal experiences on the presumption that you want to get their advice. Or you can just be straight to the point. This will depend on your family’s communication style.
Assess Financial Situation
When your parents start opening up more about their plans and savings, you can begin asking about the numbers. To assess their real financial situation, you should check their monthly income, savings, assets, 401(K), and IRA account. It is also vital to know their expenses and if they have outstanding debts or loans. What some people do is have their family fill out a form where they have to provide financial information. If you think that your parents will be fine with this approach, go ahead. You will need such information to develop a plan for maximizing their retirement fund.
