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The baby boomers are retiring in big numbers and more of us in the sandwich generation will have to step-up and help our aging parents. It is estimated that 5 million senior citizens a year are targets of financial scams. Why, because that is where the money is. Baby boomers are retiring with large pension accounts and scammers are after it.
Helping our aging parents, in short, is going to be tough. So how do you help your parents with their money? Very carefully! There are several things to remember about dealing with mom and dad’s money. The first thing is that it is their money! What they do with it or how they spend is up to them, not you. The second thing is that when it comes to investing, the investments should be suitable for a person your parent’s age, not yours, even if it is your inheritance. Be careful with investments with guarantees. Remember, your job is to make sure that they are not being taken advantage of.
Often times the victim of scams don’t recover any of the money they lost even if the individual is caught, the damage is already done, think Madoff . He was caught; however, investors did not get their money back. If your parents are receptive to your help, start by taking financial inventory such as wills, living wills, bank accounts, investment accounts, insurance contracts and any other important papers. Offer to go to meetings with their financial advisors, accountants or attorneys.
You should move slowly and engage your parents in this process; you don’t want your parents to feel inadequate. Take the support role by assisting and making suggestions to your parents. In my 20 years of advising, I have came across many situations where if someone took the time to help their aging parent with their finances bad situations could have been prevented.
If you find your parents are resisting your help, or you don’t feel comfortable with this you may be better off to suggest finding a professional financial advisor you trust to assist with this process.
Taking the time to deal with our aging parents today while everyone is happy and healthy will prevent a lot of stress and aggravation later.
Erwin B. Gant, President
Gant Private Financial Management
Tags: consumer, retirement
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