Sons & Daughters To The Rescue
When Is It Time For Financial Intervention, Mom and Dad?
When does it make sense to search for a planner for your parents? In Jennifer Openshaw’s opinion, right now. It doesn’t matter what age or stage they’re at. Problem is, the majority of Americans wait until a crisis or retirement hovers over them to take action.
You can always use a triggering event to broach the topic, such as:
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A divorce
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An illness, even a short-term one. “What if this had been more serious?”
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Loss of income, even if minor. “What if [the primary breadwinner] lost his job?”
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A refinancing or a new loan. “Why did you need to refinance? Are you having some financial pressures?”
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Unpaid credit cards, other bills - a sign of trouble
Openshaw believes the keys to success in making this happen are:
1.) Remove yourself from the process. Don’t assume that just because you’ve been down the financial-planning road or invested your money yourself that you’re the one to handle it for your parents.
2.) Bring in an independent, fee-only adviser. Most advisers will only talk to you if you have $500,000 or $1 million in assets. That is, unless they sell commission-based products. Opt for an adviser geographically close to your parents, and one who is truly objective - meaning, they’ll charge by the hour, as high as $400 depending on where you live.
As part of her search, Openshaw developed a mini-RFP (request for proposal) that outlined my requirements (location, experience, references) and her needs. Those needs might include any of the following:
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Cash-flow (budgeting)
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Retirement planning
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Investments
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Insurance (life, but maybe long-term, too)
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Taxes
3.) Give them a say in the decision. Don’t forget to allow your parents the opportunity to meet and give the “go-ahead” with your planner.
