My mom, Nancy, having fun at Mission Santa Barbara.
Mother’s Day is fast approaching. This year, it’s Sunday, May 12. Depending on your mom’s stage of life, she may need a little help with her financial planning. Here are a few things that you can do to help your mom with her finances.
Don’t be surprised if you encounter resistance. This is normal. After all, she’s still your mom and still the parent. It may take some time to reach an understanding that you are offering to help, not take control, of your mom’s financial life. One tip here, get and keep mom involved! It’s very important that she understand what exactly 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 her mind. Basically, to make things easier and more manageable.
Start with conversations. Just talk with your mom and get an assessment of where she is with her financial planning, and what exactly is her understanding of various topic areas. Your mom may have a good handle on things, or she could be totally in the dark. Everyone’s journey is different so keep in mind you are not there to judge.
Next, once you are both ready, it’s time to check with her to see if there are any pressing issues. Is she still able to handle her own accounts (banking, credit, mortgage, etc.)? Does she need assistance with a specific area?
You’ll also want to do a survey of accounts at some point to know exactly what your mom owns and owes. At this point, it would be good to discuss simplifying if she 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 her income sources, insurance, and medical coverage. Make sure you both have contact information for these important accounts. With regard to her income sources, determine if she is tapping her 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 mom 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 mom involved and make sure her estate plan addresses her current wishes. When it comes to the estate planning aspect, trust but verify! If mom says she’s taken care of it, have her show you her actual estate plan. Make sure it’s up to date and that all executors, trustees, beneficiaries, etc., are still valid – and living!
Prepare mom a binder. You know I’m big on binders for keeping things together. Make sure all of your mom’s accounts, contacts, professionals, 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 mom ages, she may need more help and she may need to tap her other financial resources, she may need to downsize, or she may need actual day-to-day help with her money management. The one thing we know is that change is constant – especially with ageing.
Oh, don’t forget to get her something nice. Remember, May 12 – this coming Sunday! 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 #mom #mother #ageing #help #senior