Showing posts with label Generational Finances. Show all posts
Showing posts with label Generational Finances. Show all posts

Saturday, November 16, 2019

How to Talk to Your Adult Children About Your Finances

As we get older, we start to think about managing our financial assets for the future. Adult children should have some basic information about our monetary resources so they can assist in the event of illness or death. 

Talking about money may seem difficult for some, but the following tips can help you to take a proactive approach to inform your kids about your long-range plans and preferences.

Prepare Financial Documents

Whatever your financial situation, you should have a Last Will and Testament that explains how you want your assets handled when you pass on. The Will explains who will receive what, and under which circumstances, after your bills and expenses are paid. 

Having a tangible document that lays out a clear-cut plan for your adult children to follow will make it easier for them to take care of things financially when the time comes.

Discuss Finances Directly

Instead of dropping hints or making your adult kids wait to open your Will and find out your wishes, it is a good idea to update them now when you can answer questions and explain where all your accounts and assets are located. 

You don’t have to give them all the details, but a general idea will provide some guidance and save time when they need to take care of things.

Consult a Financial Planner

It makes sense to optimize your monetary assets so you can earn income from investments over time as well as leave something for your children or heirs. You can ensure your finances will be well-cared for by meeting with financial planners for information and ideas about the best ways to save for the future. A planner may recommend starting a stock portfolio. 

Or you may be interested in buying a rental property. There are many ways to build financial security and even wealth, and a financial planner can offer suggestions or experienced guidance to help you make wise choices with your money. You may want to take one or more of your adult children to a meeting with your financial adviser to keep everyone in the loop.

Update your Estate Plan

Over time, changes may occur in your financial circumstances or among family members that lead to changing your financial goals. Inform your adult children of major changes that will impact them so they can avoid surprises later.

You may decide to discuss your finances with adult kids incrementally instead of all at once. That works, too, as long as they have an idea of what to expect and how to proceed in the future.

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