My step-dad and my mom enjoying a football game.
It’s fair to say that you have seen this post before. In May to be exact. Given that Father’s Day is fast approaching, it’s only fair to remind you of tips to help dad with his finances. We often assume it’s mom who needs help, but dad may need help as well. Men are notorious for not asking for help, so you may need to be a bit of sleuth and may need to be persistent. This year, Father’s Day is Sunday, June 19. Depending on your dad’s stage of life, he may need a little help with his financial planning whether he admits it or not. Here are a few things that you can do to help dad with his finances.
As I noted in May for mom’s tips, don’t be surprised if you encounter resistance. This is normal. After all, he’s still your dad and still the parent. It may take some time to reach an understanding that you are offering to help, not take control, of your dad’s financial life. One tip here, get and keep dad involved! It’s very important that he understand exactly what you are trying to do. That is, you’re trying to help ease the stress and confusion some seniors face around finances, and answer any questions that may be on his mind. Basically, to make things easier and more manageable.
Start with conversations. Just talk with your dad and get an assessment of where he is with his financial planning, and what exactly is his understanding of various topic areas. Your dad may have a good handle on things, or he could be totally in the dark. Everyone’s journey is different so keep in mind you are not there to judge but to be supportive.
Next, when you are both ready, it’s time to check with him to see if there are any pressing issues. Is he still able to handle his own accounts (banking, credit, mortgage, etc.)? Does he need assistance with a specific area? You’ll also want to do a survey of accounts at some point to know exactly what your dad owns and what he owes. At this point, it would be good to discuss simplifying if he has too many of the same type of accounts. For example, multiple savings and checking accounts could be combined into just one each at single institution. Consider streamlining credit cards and store accounts as well.
Your survey of accounts should also include his income sources, insurance, and medical coverage. Make sure you both have contact information for these important accounts. With regard to his income sources, determine if he is tapping his various income sources in the most efficient manner. Try to determine how much annual income is needed and what’s providing the income. Is it all Social Security? IRA or 401(k)? Pension?
Now comes the tough conversation. Has dad planned for end of life? This is a key conversation that needs to be had. Again, you may need to have multiple conversations around this topic over time. Keep dad involved and make sure his estate plan addresses his wishes. When it comes to the estate planning aspect, trust but verify! If dad says he’s taken care of it, have him show you his actual estate plan. Make sure it’s up to date and that all executors, trustees, beneficiaries, etc., are still valid – and more importantly, living!
Prepare dad a binder. You know I’m big on binders for keeping things together. Make sure all of your dad’s accounts, contacts, professional contacts, key documents such as insurance, retirement, and deeds are in a single, easily accessible location. The binder is good because it keeps all items together.
Finally, check in from time to time. As your dad ages, he may need more help and he may need to change how he taps his financial resources. Dad may need to downsize, or he may need actual day-to-day help with his money management. The one thing we know is that change is constant; especially with ageing.
Oh, don’t forget to get him something nice. Remember, June 19 is fast approaching! As an independent CERTIFIED FINANCIAL PLANNER™, I can help you with your personal financial plan. Contact me and let’s get started on a savings, investing, or retirement plan. #talktometuesday #education #Hireaplanner #stressfree #savings #retirement #CFPPro #whatsMYnumber #mothersday #dad #father #ageing #help #senior