A Guide to Helping Your Elderly Parents Choose the Right Financial Products

As people get older, they may need more help from their children when it comes to managing their finances. For example, they may start forgetting to pay their bills on time or struggle to make wise financial decisions on their own. To help, we’ve developed this guide you can use to assist your elderly parents in managing their finances and choosing the right financial products.



Tip #1: Consolidate Basic Financial Information

To start, you’ll want to help your elderly parents consolidate all of their financial information.

Create a document you can use to keep track of the names and numbers of your parents' investments and bank accounts. This document should also include information about their mortgage, outstanding debts, regular bills, insurance and car payments. If your elderly parents are still working, list all of their sources of income as well as account numbers if the income is deposited directly into a bank account. Be sure to keep this document in a safe place. Tell your elderly parents and trusted family members its location and how to access it.

Not only should you help your elderly parents consolidate their basic financial information, but you should also help them streamline their accounts where possible. For example, you can consolidate credit card, checking or savings accounts to make life easier.

Tip #2: Make Sure Legal Documents Are Current

Next, you should make sure that all legal documents are up-to-date and easily accessible. In the event of an emergency, or if your elderly parent becomes incapacitated, it is important that you are able to locate these documents quickly.

If you are unable to locate certain documents, you may not be able to adequately protect their financial assets. Some examples of important legal documents include wills, insurance policies, bank and brokerage statements, Social Security payments, home mortgage, car title, pension records and safe deposit boxes.

Tip #3: Assess Their Insurance Needs

Have a candid conversation with your parents about the future, and how you’re here to help them choose the right financial products for their needs.

Together, you can go over important protection options like:

• Long-term care (help cover the costs of elder care)
• Life insurance (provides a lump sum to their beneficiaries after their passing)
• Disability insurance (covers the cost of medical care and lost income in the event of an injury)

Just as you help your parents determine which of these policies is right for them, it’s equally as important to understand what they may not need coverage for. As an example, your parents may already have a thorough estate plan in place that covers funeral expenses and inheritances for family members. In this case, life insurance may not be a big priority. Alternatively, if your parents have already set aside enough money to cover the potential costs of elder care, long-term care insurance may not be necessary.

When helping your parents decide, consider factors like insurance rates, the extent of the coverage and your parents’ earnings and expenses. With so many providers and options to choose from, this can be an overwhelming decision for older relatives to handle on their one.

Elderly parents often need help from their children when it comes to managing finances and choosing the right financial products. For more information about how to help your elderly parents select the best financial products and manage their finances, don't hesitate to reach out.

This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.