Financial Planning for Seniors and their Adult Children

Life is full of uncertainty. Unfortunately, this can be especially true as we age. Declining health and death of a spouse are two life events common to seniors that will change their world – and sometimes overnight. A comprehensive financial and investment plan will address a number of issues that arise as a result of these changes. For example:

Seniors may wonder:

• What are the financial implications of my spouse’s death, like a decrease in their pension income?
• How much income do I need to fund my lifestyle needs?
• How much money will I receive from government programs? What are all of my income sources?
• Do I need to sell property or other assets?
• How long will my savings last?
• Which care options are available to me and what are the costs involved?
• How much financial and care support do I have available to me, either through the government, friends and/or family?
• What documentation do I need to have in place to take care of my needs?

Adult children may wonder:

• How much or how little assistance do my parents need?
• What resources are available to assess the type of care my parent(s) need?
• What is involved in administering their financial assets?
• Is their portfolio being managed properly? How can I get an unbiased second opinion?
• Is the investment strategy and fee structure still appropriate? If not, what options do I have and how do I go about implementing them?
• Will my parents have enough funds to care for their needs over the years or do I need to lend financial support? If so, how much is required on a monthly and annual basis? How much can I/my family afford?

The good news is, you don’t have to wait until a life changing event happens. Having a plan in place now, before a crisis occurs, will increase your options later; not to mention provide you with a much greater sense of security. On the other hand – it is never too late to plan and the old adage ‘better late than never’ certainly applies. So at whatever planning stage you find yourself in, remember: while we cannot eliminate life’s uncertainties, we can lessen their impact by having a solid Financial Plan in place.