Family gatherings are a good opportunity to tackle an important but delicate subject
As more people get into the spirit of the holidays, everyone should realize importance of catching up at family gatherings. For many, that means talking about major stories and milestones from the past year. But clients with aging parents may also want to check on more nitty-gritty details.
Many Canadians find senior care a difficult subject to broach. But according to Keith Fenstad, director of financial planning at Tanglewood Total Wealth Management, clients should be advised to have the conversation — and approach the topic subtly.
“One strategy clients can use to gain insight into a parent’s financial situation is to talk about their own,” Fenstad wrote in the Wall Street Journal. He said by sharing information about a new life-insurance policy or retirement account, for example, clients can ask their parents about their experience with those tools.
“The goal is to identify potential issues that aging parents may be facing, or gaps in their current financial plans, and to start a dialogue,” he said.
Family gatherings are especially important for those who might not see their aging parents often. When visiting for the holidays, clients may see signs that their parents are struggling to manage their finances or day-to-day affairs. Unopened mail or an understocked refrigerator, for example, may indicate mental decline — which could put seniors at risk of financial abuse.
“One great way we’ve seen clients get more involved is by asking parents for access to their online financial accounts,” Fenstad said. With such information, adult children have a window to check up on their parents’ finances and see any unusual activity. It will also make things easier when elderly children have to take the financial reins.
Still, clients should be reminded not to put too much pressure on themselves or their family. “This is a process of engagement,” he said. “If a client has never broached the subject of finances with his or her parents, there is no need to hammer out any decision before the holidays are over.”
Related stories:
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Many Canadians find senior care a difficult subject to broach. But according to Keith Fenstad, director of financial planning at Tanglewood Total Wealth Management, clients should be advised to have the conversation — and approach the topic subtly.
“One strategy clients can use to gain insight into a parent’s financial situation is to talk about their own,” Fenstad wrote in the Wall Street Journal. He said by sharing information about a new life-insurance policy or retirement account, for example, clients can ask their parents about their experience with those tools.
“The goal is to identify potential issues that aging parents may be facing, or gaps in their current financial plans, and to start a dialogue,” he said.
Family gatherings are especially important for those who might not see their aging parents often. When visiting for the holidays, clients may see signs that their parents are struggling to manage their finances or day-to-day affairs. Unopened mail or an understocked refrigerator, for example, may indicate mental decline — which could put seniors at risk of financial abuse.
“One great way we’ve seen clients get more involved is by asking parents for access to their online financial accounts,” Fenstad said. With such information, adult children have a window to check up on their parents’ finances and see any unusual activity. It will also make things easier when elderly children have to take the financial reins.
Still, clients should be reminded not to put too much pressure on themselves or their family. “This is a process of engagement,” he said. “If a client has never broached the subject of finances with his or her parents, there is no need to hammer out any decision before the holidays are over.”
Related stories:
Canadian families poorly prepared for estate planning
Panel supports investor-protection proposals
