Not yet? Procrastination is easy. It’s something you can always do later, right?
This picture isn’t a stock photo; it’s of my wife and I with my parents after we brought them from Florida to California to live with us in 2005. This picture was taken for my mom’s 91st birthday (she’s 99 and still with us today). Thankfully, we had been planning the financial transition for some time. When the time came, all the ducks were lined-up.
Many haven’t done that, however. And, procrastination can cause problems. It’s worth being pro-active. You might want to read this New York Times article.
Having the conversation can be difficult for some because of a number of perceived barriers. Some need to feel in control; others may feel the need to avoid possible confrontation.
Quite often a good financial planner can help by acting as a facilitator, helping determine what subjects the client may wish to cover and then providing a roadmap for discussion, possibly involving the family attorney and accountant – something your planner can coordinate.
Financial writer Dan Richards suggests some potential topics:
- Estate plan and any trusts
- Life insurance
- Long term care and other insurance
- Value of investments, assets and possessions
- How current investments are allocated
- Executors Power of attorney Location of documents
- Advanced health directive
- Funeral arrangements
- Special gifts
Having this discussion before you need to can make things a lot easier; and, having an outside facilitator can provide an independent framework and remove some of the barriers to discussion.
IFG Report: The Hidden Risk No One Talks About (registration required)
A Financial Conversation Checklist (does not require registration)
Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-only registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742. IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.
The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.