Talk Finances With Loved Ones Today
An uncertain future can be a great motivator for putting together a financial plan. Knowing you're prepared and that your loved ones will be taken care of after you're gone can provide peace of mind to everyone involved.
While it's a tough conversation to have, you can't afford to put it off. In fact, as the boomer generation enters its golden years and is set to bequeath a historic amount of money to younger generations, the time to talk is now.
It's Not Just You
Discussing financial matters is considered taboo in American culture. While observing that taboo may be polite in a room full of strangers, failing to communicate to your family the rationale behind a fair but inequitable division of assets in your estate planning could do more harm than good. Unfortunately, 80 percent of parents don't get around to discussing the topic of inheritance with their children.
Start Slow and Keep Going
When children are young, coaching them about the value of money may be enough. Introduce them to your financial advisor to help establish trust early on. As they mature, continue to include them as you meet with your network of professional advisors and go beyond inheritance to discuss the details of your estate plan, including items such as legal documents and long-term care insurance.
By properly managing expectations through a series of conversations over time, you can clear up misconceptions and reduce the level of uncertainty, shock and stress your loved ones will face in the event of the inevitable.