75 percent of adults believe that they have a responsibility to provide financial assistance to their aging parents.
63 percent of adults have given some type of financial support to their grown children in the past year.
These days, 65 is hardly considered old age. But it’s crucial to sit down with your parents and have an honest discussion about issues that may arise—before they need your help. What are their expectations for the future, and what kind of assistance will they need from you? Will they have sufficient resources to cover their care as they age?
Look into banking options. Most banks offer automatic bill payment services from checking or savings accounts—a convenient option if your parents are comfortable with the Internet.
Enlist an advisor. Now may be a good time to get to know your parents’ financial advisor, or to talk to your own advisor about your parents’ situation. He or she can recommend products that are suitable to their investment goals, whether that means income, capital preservation, or growth. An advisor can also propose cash management solutions, which allow your parents’ monthly social security, retirement plan, and annuity payments to be deposited automatically into an account. You can typically access these funds through a debit card, unlimited checkwriting capabilities, and online bill-pay services—everything that a bank checking account offers.
As your parents age, a number of other considerations will likely come into play. Will they be able to continue living at home? How long will they be able to drive? Although these topics may be difficult to discuss, it’s important to start the conversation early—for your parents’ sake as well as your own. By planning ahead for any financial assistance and other care they may require, you’ll help ensure that everyone’s needs are met.
Gabe Lapito is a financial consultants located at 208 North Broadway, Suite 450, Billings, MT. or 405 West Boxelder Rd, Gillette, WY. SRP offers securities as a Registered Representative of Commonwealth Financial Network®, Member FINRA/SIPC. They can be reached 1-800-489-8685 or at srp@lapitoretirement.com.