It’s critical to know what financial questions to ask your parents as they get older. It’s never straightforward persuading your parents to discuss their money issues, but it’s an important part of the planning process. If you’re not sure where to start, elder care professionals suggest talking about your circumstances to get the dialogue started. Read on for some financial questions to ask your elderly parent sooner than later.
Do You Have a Financial Plan?
Some folks will have a well-thought-out financial strategy that will allow them to retire happily into their 80s. But for some, you may discover that they are on a strict budget and that money is limited. If it’s evident that you will probably need to assist them financially soon, start planning now. Any financial assistance you provide them will almost certainly influence your budget.
What Are Your Income Sources?
This is likely the most challenging question to ask, but knowing what you’re up against now is preferable to being startled subsequently. Get account information and learn where your parents keep official documents if they have investment returns or a retirement account. This is also a good moment to inquire if they consult a financial advisor and if so, obtain the relevant party’s contact details.
Are You Dealing with an Existing Mortgage?
Worried adult children can question their parents if they still owe a mortgage. Too many monthly payments can be a hindrance in retirement and might put a further strain on a tight budget. The lack of a mortgage payment allows retirees to be more flexible with their monthly income so maybe downsizing prior to retirement to pay off a mortgage is a sensible solution.
Consider getting mom or dad in touch with a financial specialist who can provide an unbiased opinion on how they may reduce costs and free up discretionary money if they are plagued by mortgage interest or struggling to pay the electricity bills on a property with greater floor space than one requires.
Any Plans for In-Home Care or Assisted Living?
Your parents may not require long-term insurance coverage, especially if they have enough resources to pay for in-home care or assisted living if necessary. However, given the rising expense of such treatment, it’s preferable to talk about options before the need emerges.
According to a Genworth Cost of Care Survey, the national median cost spent for assisted living apartments in 2019 was about $4,000 per month while home health care assistants charge an estimate of close to $4,500 per month. If your loved one is planning to pay out of their pocket, this might quickly drain resources, so it’s a topic that should be discussed as soon as possible to ensure that expectations are met.
Because statistics suggest that elderly individuals are living much longer, children or grandchildren of the elderly are more likely to be responsible for financial accounts other than their own as they age. You might have to assume your parents’ financial duties if they become unlikely to make sound decisions. You can be in a better position to manage if you ask your parents about important financial issues now. It could even provide you the chance to assist them with their wealth management.