Let’s Talk Money: Conversations Between Millennial Children & Boomer Parents

Written by: William Engel, CFP®| Financial Advisor

The holidays mean family traditions, making memories and spending time with loved ones. But the holidays can also provide an opportunity for families to discuss future financial plans for parents in or approaching retirement. A recent study by Fidelity reveals a gap in alignment of parent/child financial expectations. In fact, the study shows that nearly four in 10 families disagree on the roles and responsibilities of millennials as their baby boomer parents age. We’ve gathered a checklist of items to address this holiday season and why it’s important.

Estate Planning
It isn’t rare for millennial children to be in the dark about their parents’ estate plans. However, it’s crucial for parents to share who the executor of the estate is, and what the responsibilities entail. Having the conversation early on is essential, for children to know what their wishes are if they become unable to communicate.

Starter questions:
– Who is the executor of the estate?
– Where is the will located?
– What is the contact information for the attorney and financial advisor?
– What are your specific requests/wishes?

Caregiving
While many seniors prefer to age in place, deteriorating health and the inability to live self-sufficiently may derail those plans. Families may be faced with the possibility of a sibling taking on a caregiving role sooner than they might predict.

Starter questions:
– Do you prefer living in or not living in an assisted living home?
– Who might be the assigned sibling to take on a caregiving role?
– Do you have long-term care coverage?
– What are your specific requests/wishes?

Managing finances
When it comes to managing finances, it’s good to have a game plan in place, especially because managing another set of finances can create a great deal of stress.

Starter questions:
– Who will manage the finances if parents are incapacitated?
– Who would become the beneficiary of any retirement account?
– Who will become responsible for paying bills?
– What are your specific requests/wishes?

Having conversations about future financial matters doesn’t have to be a point of stress. While it can be a sensitive topic, millennials can express that they would like to be respectful of their parents’ wishes when it comes to money and future plans. It is extremely stressful to see parents age and eventually pass, but having a plan in place eases the pressure and strain on loved ones.

About the Author:

William Engel, CFP®
Financial Advisor
Fort Pitt Capital Group, LLC
680 Andersen Drive, Pittsburgh, PA 15220
(412) 921-1822 | bengel@fortpittcapital.com