We often think about our own retirement plans, but these are actually not the ones most likely to hit you first. More urgent is the concept of knowing your parents\u2019 retirement plans.<\/p>\n
This is especially important if your parents are nearing the 65 years-old benchmark, but actually it\u2019s vital to know at any time. Why? Because most of us, and especially the older generation, do not talk about money openly. So while you are living your life, there could be plans \u2013 or the lack of plans \u2013 that are going to majorly hit your finances once your folks retire.<\/p>\n
The best thing to do is sit down and ask them plainly, getting as specific as possible. It can be an uncomfortable conversation to have, but forewarned is forearmed. Here are a couple of the most important questions:<\/p>\n
When are you planning on retiring? Are you planning anything specific for then?<\/strong> Am I in your plans? Or am I the plan?<\/strong> Are there any debts?<\/strong> Is there insurance and an updated Will?<\/strong> Also, unpleasant as it is to think about, if your parents are getting older you need to ensure that they each have a Last Will and Testament with up-to-date contents. It\u2019s the only way for them to legally ensure their last wishes are complied with.<\/p>\n Do you understand that I\u2019m asking these things because I care about you?<\/strong> \t\t\t\tWe often think about our own retirement plans, but these are actually not the ones most likely to hit you first. More urgent is the concept of knowing your parents\u2019 retirement plans.\t\t<\/p>\n","protected":false},"author":1,"featured_media":3129,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,27],"tags":[],"class_list":{"0":"post-3128","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-blog","8":"category-life","10":"post-with-thumbnail","11":"post-with-thumbnail-large"},"yoast_head":"\n
\nIf your parents are planning to retire in just a few years or are in an industry with forced retirement and they don\u2019t have enough savings\u2026 guess who\u2019s going to fund that retirement? Best you know now.<\/p>\n
\nThis is essentially the most crucial question. You need to know as soon as possible if you will need to take care of your parents. Until you have this conversation, you may have no idea that you\u2019d subconsciously assumed your parents would give you their nest egg savings someday while they assumed they\u2019d invest it on travel once they retired. That\u2019s why these talks are so important.<\/p>\n
\nThis includes a home loan, medical bills, any existing student loans for you or your siblings that your parents took on and smaller things like cellphone contracts and clothing store accounts. Find out exactly what they owe and if they have the means to pay it back. This can also help you determine whether or not their ideas of retirement and if they have the funds are realistic. Again, try to seem helpful rather than probing as this is often a tough conversation for many parents.<\/p>\n
\nInsurance gets a bad rap, but can be a huge relief if you know that your parents have adequate cover in place for the unforeseen ills of getting older, like sudden medical expenses, disability cover and even life insurance should they pass away. Check that both parents have adequate cover for all eventualities and, if they don\u2019t, get them on it as soon as possible. Any retirement savings that are in place will get used to finance a crisis if there is no cover in place.<\/p>\n
\nYou\u2019re probably thinking \u2018this is a terrible idea\u2019 at this point. Again, this conversation is uncomfortable for everyone 90 percent of the time. It\u2019s natural for people to no want to talk about a time they\u2019d be unable to feed themselves, and similarly you don\u2019t want to feel cold-hearted. Just try broaching the subject lovingly and take it slow. It doesn\u2019t need to all happen at once. It just needs to happen.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"