Pure’s Senior Financial Advisor, Blaine Thiederman, CFP®, MBA, provides two vital financial conversations for families to have before the unsaid creates bigger problems down the line.
Transcript
A recent Fidelity study found that more than half of Americans said their parents never discussed money with them, yet over 80% would have benefited from financial education at an earlier age.1 So why don’t they talk about it? Well, it’s a deeply personal topic, so much so that a significant amount of people find it more challenging to talk about personal finances than to talk about politics or even death.2
But most families struggle to approach this discussion. That doesn’t mean it should be avoided. So today, we’re diving into two vital conversations every family should have. Let’s start with one of the most difficult but critical talks. It’s the what if something should happen to us conversation. People avoid this because it forces them to think about mortality, but a lack of clarity here can create real chaos and consequences for survivors.
This conversation isn’t about net worth. It’s about focusing on estate planning basics. That includes wills, beneficiary designations, powers of attorney, and who’s named as a guardian for minor children. Beyond identifying who is responsible for what, make sure the people named for those responsibilities actually know that’s their role and understand what it involves.
If you have adult children, ensure they know where and how to locate your important documents and account information should they ever need access. This next conversation used to be less relevant, but as technology and medicine allow us to live longer and grow older, it’s becoming more and more vital.
It’s the retirement and long-term care discussion. Left unaddressed, this can turn into a crisis conversation instead of a planned one, and long-term care costs can quietly devastate a retirement plan or shift the burden onto adult children. This conversation should focus on whether there’s a plan for retirement income, long-term care costs, and who will provide or coordinate care if health declines.
If long-term care is needed, make sure your children know your preference for where it should take place, like at a home, an assisted living facility, or a nursing facility. Families often assume we’ll just figure it out as a plan, but it isn’t. It just delays the hard decisions to the worst possible moment, adding even more stress and difficulty for you and your family.
The bottom line is that leaving things unsaid now creates problems later that are bigger than an uncomfortable conversation. Take advantage of our free estate plan organizer by scanning the code on your screen to get started. It will help you collect all your relevant estate records so that you and your heirs can keep better track of all the important information in your life.
When you’ve finished organizing everything, don’t forget to claim your free financial assessment to put your plan to the test. It’s a one-on-one meeting where we would fully discuss your current financial situation and help ensure you’re on the right path towards your goals.
Sources:
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“Fidelity Investments® Research: Americans Ready to Break the Cycle of Avoiding Family Discussions on Once Taboo Financial Topics.” November 19, 2024.
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“How To Get Better At Talking About Money.” August 17, 2023.
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- Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
- Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
- Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
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- Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
MBA – The Master of Business Administration (MBA) is a postgraduate degree that is awarded to students who have mastered the study of business. Most MBA programs include a “core” curriculum of subjects, such as accounting, economics, marketing, and operations, as well as elective courses that allow participants to follow their own personal or professional interests.
