Warning Signs That Your Parents Need Financial Help
Talking about your finances is never easy. Talking to your parents about their finances before or during their retirement can be just as difficult.
This is the situation many loved ones and caregivers may find themselves in at some point as their parents get older and they need their help managing their finances.
Most importantly, parents should feel their children are there to help, no matter what, and feel safe talking about their finances openly.
If children feel they would have a hard time talking to their parents about their retirement planning and the financial stability of their plans, here are a few warning signs to watch out for:
Ask Them About Their Health
Firstly, children should gauge their parent's health for any signs that it may be deteriorating. If this is happening, it's crucial to notice as soon as possible, in order to take the necessary steps to protect their parents should they fall ill in the future.
Look For Irregularities In Their Spending
Most people are used to checking their bank statements once a month when the statement comes in the mail, but when it comes to retirees, their adult children should become more involved and track spending more often than it's customary.
Notice if bank statements reflect excessive statements or buying the same things over and over as this could signal more troubling health issues in the future. If looking at bank statements is too uncomfortable, look in their pantry. See if they have something (like rice or ketchup) that is piling up; it could be an early warning sign that something is amiss.
Talk To A Financial Planner
In addition, children should seek help, along with their parents, in determining if their parents have enough cash flow to sustain them long into their retirement. As people live longer than ever before, retirement planning should reflect the changes in the times, predicting longer survival than just a decade after retirement.
If children of retired parents notice retirement funds are dwindling fast or there is a strong possibility their family members may outlive their funds during the length of their retirement, they should seek out guidance from financial professionals as well.
In addition to medical illnesses, children also need to consider unexpected financial hardships such as freak accidents. It's hard to think of a time when parents or family members may be ill because of one reason or another, but being prepared is part of the solution.
How Reverse Mortgages Can Help
Reverse mortgages can be part of the solution for long-term retirement planning as well, even when more traditional methods of retirement planning are in place. It can give retirees the necessary financial cushion for the unexpected expenses as well as paying off any remaining mortgage or HELOC debt so that those monthly payments can be put to use elsewhere such as a savings account.
Financial stability is always important but even more so during a time when retirees should be relaxing or volunteering or working because they love what they do or are beginning a third career, not because they need to pay their monthly bills or are struggling to do so.
This blog was written with the help of Dennis Coral, vice president and financial advisor, at SunTrust Bank Wealth Management.
Interested in a reverse mortgage or simply want more information? Give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.