By: Sentient Wealth Group
As our parents age, their financial needs evolve in ways that can be complex and emotionally charged. Whether they’re nearing retirement, facing increasing medical expenses, or simply downsizing their lifestyle, proactive financial planning becomes essential—for their peace of mind and yours.
At Sentient Wealth Group, we often work with families who are beginning this journey and feeling overwhelmed. Here’s a practical guide to help you approach financial planning for aging parents with clarity and compassion.
- Start the Conversation Early
The most difficult part of planning is often just starting the conversation. Many adult children avoid talking about money with their parents due to discomfort or fear of seeming intrusive. However, early and open communication can prevent crises later.
Tips for starting the discussion:
- Choose a calm, private time to talk.
- Express your care and concern, not control.
- Focus on future planning rather than current problems.
2. Get a Clear Picture of Their Finances
Understanding your parents’ financial situation is crucial for informed planning. This includes income sources (Social Security, pensions, investments), monthly expenses, debts, and assets.
Documents to review together:
- Bank and investment statements
- Insurance policies (health, life, long-term care)
- Wills, trusts, and power of attorney documents
- Mortgage, credit card, and loan balances
3. Plan for Healthcare Costs
Healthcare is one of the biggest expenses in retirement, and Medicare doesn’t cover everything.
Consider the following:
- Do your parents have long-term care insurance?
- Have you reviewed their Medicare or supplemental plans?
- Is a Health Savings Account (HSA) a viable option if they’re still eligible?
4. Ensure Legal Documents Are in Order
Every aging adult should have essential legal documents in place. These ensure their wishes are respected and simplify decision-making in a crisis.
Key documents include:
- A will
- Durable power of attorney for finances
- Healthcare proxy or medical power of attorney
- Living will or advance healthcare directive
5. Protect Against Fraud and Financial Abuse
Older adults are common targets for scams and financial exploitation. Help your parents set up safeguards.
What you can do:
- Set up alerts on bank accounts
- Use trusted contacts for financial institutions
- Consider consolidating accounts to simplify oversight
- Discuss common scams and how to avoid them
6. Collaborate with Financial Professionals
You don’t have to navigate this process alone. A qualified advisor can help you and your parents develop a sustainable financial strategy that accounts for long-term care, estate planning, tax efficiency, and legacy goals.
At Sentient Wealth Group, we specialize in multi-generational financial planning. We’ll work closely with your family to create a plan that aligns with your parents’ values while reducing your burden as a caregiver or financial steward.
Final Thoughts
Financial planning for aging parents isn’t just about dollars and cents—it’s about dignity and creating a legacy. With the right tools and support, you can help your parents enjoy their later years with confidence, while also preparing for your own financial future.
If you’re ready to start the conversation or need help assessing your parents’ financial situation, schedule a complimentary consultation with one of our advisors today.