Talking finances with your parents can protect all of you.
We all need it to live in society.
Nevertheless, we do not always like talking about it.
Having these conversations with aging parents can be even more uncomfortable.
Kinda like the "birds and the bees" conversation when you where a teenager.
According to a recent Forbes article titled “What You Don’t Know About Your Parents’ Finances Could Ruin Yours,” it is important to have these conversations.
As your parents age, so do their bodies.
Their minds may not be as sharp.
They may need help with their finances.
They may need you.
Failing to discuss finances with them early on could create an unnecessary financial burden for them and for you.
Medicare does not cover long-term care costs for home help, assisted-living, or nursing home care.
This care can be expensive—exceeding $8,000 per month.
Only 5 percent of Americans ages 55 to 60 have long-term care insurance.
Only 11 percent of those 65 and older have long-term care insurance.
Without insurance, you may become the only option for paying for or providing care.
This will cost you in money as well as in income from lost time at work.
It is important for you to have this discussion so you can either help them prepare financially or help create a plan with your siblings to ensure everyone is prepared for potential financial burdens.
While you are discussing finances, talk with your parents about their estate planning.
Be sure they have an up-to-date last will, general durable power of attorney for financial matters, and advance health care directives.
Knowing your parents have a plan in place and the nature of the plan will give you and your loved ones peace of mind.
Be good to your parents.
Not only is it meet and right so to do, but your children are watching and learning from your example.
Reference: Forbes (July 17, 2019) “What You Don’t Know About Your Parents’ Finances Could Ruin Yours”