A: There comes a time when parents nearing retirement should have a conversation with their adult children about their financial situation. In many cases the conversation can feel overwhelming and a bit uncomfortable. Also, busy schedules and limited time may make financial conversations easy to put off, but sharing information can help you feel more confident and prepared in the long run. Consider these four tips to get the conversation started:
1. Communicate your own financial plans. It’s important to make your children aware of your short- and long-term plans, especially if you’re nearing retirement or have recently retired. Share any major financial and lifestyle decisions, including if you’re planning to travel or relocate during retirement, what arrangements you’ve made for future health care needs and any legacy plans you have in place. If you’re currently providing financial support to your adult children or grandchildren (or plan to in the future), speak honestly and set realistic expectations. Be clear about your ability to contribute funds for their specific financial goals (such as educational expenses) or to provide support if your child has a financial emergency like an unexpected job loss.