Aging With Financial Independence: Practical Steps for Supporting Your Parents' Financial Planning

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There are often signs your parents have reached a point where they need help managing their finances. It's important to be aware of any unexpected changes in your parents' financial lives and to address them as needed. Some of these changes may include:

• They start making out of character odd purchases or being more careless with money.
• They receive calls from creditors.
• They are frequently targeted by scammers through phone, snail mail and email more than usual.
• They struggle keeping up with routine behaviors, such as balancing their checkbooks and paying bills on time.

This can be a difficult time for everyone involved. But the sooner you act, the easier it is to mitigate unfortunate events from occurring.

Consider these practical steps for supporting your parents' financial planning:

Collect and Organize Financial and Legal Documents

Not only does getting organized provide you with a better picture of where your parents stand financially, but it is also pivotal for decision-making and taking necessary actions on their behalf.

Keep a Separate Record of Important Account Numbers

Maintaining up-to-date and accurate records is crucial when it comes to financial planning. If you don't have a record of the account numbers, it will be difficult to monitor for security purposes and manage accordingly.

Stay Organized and Keep Your Parents' Finances Separate From Your Own

Ensure you stay organized and keep your parents' finances separate from your own. This can help mitigate the risk of misunderstandings or uncomfortable questions being asked. Family dynamics can be a sensitive subject to discuss, but even more so when it comes to money. A potential solution for this is to develop a transparent culture of discussing finances and making informed decisions together. Several techniques for staying organized include:

• Creating a budget for your parents' expenses.
• Maintaining a payment schedule for bills.
• Setting manageable goals.

Stay Vigilant Against Identity Theft and Scams

Identity theft and scams targeting the elderly are getting worse, and people can lose significant savings to these predators. Several methods to help protect parents from financial scams include:

• Monitoring their credit report or, if necessary, locking their credit and freezing their Social Security number.
• Becoming their power of attorney.
• Regularly communicating with family members in case they notice red flags.
• Looking out for scams and blocking potential scammers.
• Verifying everything with trusted or qualified people.
• Safeguarding personal information, including regularly changing passwords, shredding documents and ensuring parents are only giving information when necessary and to verified parties.
• Regularly reviewing their accounts for any misuse of funds or strange activity.

Talk to Them About Power of Attorney

Powers of attorney can be an effective tool when managing your parents' finances and estate planning. Some of the benefits of a power of attorney for your parents include:

• Making financial and personal decisions on your parents' behalf.
• Working through insurance issues and helping them save money.
• Paying bills on time.
• Monitoring accounts against fraud and scams.
• Updating beneficiaries in the event of death or the wishes of the parents.
• Revising other aspects of the estate plan.

Talk to a Financial Advisor

Financial advisors at BECU Investment Services are always here to help. Our team will take the time to get to know you, understand your goals and implement a retirement or investment strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720 today.