Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Jul 06, 2021

If you have an elderly relative, you might take on some roles of helping them in various areas of life. One of these roles might be that of helping them manage their finances. As you would quickly find out, managing finances for someone who is a senior is different from what you might do for yourself. 

There are many different challenges involved, so it is important that you know how to approach financial planning for seniors and how to talk to your loved one about your strategy.

Keep them in the loop

Talking about money is not easy, especially with the people you are close to. However, it is important for you and your elderly relatives to be transparent with one another. Be clear about your intentions on how you want to help them pay bills on time, avoid scams and live comfortably.

Do not manage their money in secret or take over as some shadow financial advisor. In fact, you may want to consider engaging a CERTIFIED FINANCIAL PLANNER™ to help. Work side by side with them and communicate with them regularly. It gets easier with time, and before you know it, they may be eager for the time they get to meet with you and discuss your strategy.

Make it easy

The world of finances is difficult for the average adult to navigate. It can be much more challenging for seniors who are not quite as in the loop with the financial landscape as you might be. 

Find ways to simplify things so that your relative understands the strategy, what you will do and what they need to do. For example, you may want to consolidate accounts into one bank or brokerage firm to make managing savings and investments simpler. Or, you may want to streamline how you review their income as a total instead of walking them through each income source every time you discuss their finances.

Establish an estate and trust

It is hard to think about your relative no longer being there, but this is the reality we must all face. As much as it is not fun to think about, it is better to be prepared for it as much as you can, so you and your other relatives can avoid financial stresses and headaches that make a loved one’s passing even more difficult than it should be.

A written will helps clear up your relative’s intent, but enforcing wills is a lengthy, expensive process that also becomes a matter of public record. 

An estate and trust plan can be more efficient and private, and it can take effect while your loved one is still alive in the event that they are incapacitated and no longer able to make financial decisions for themselves.

Talk to a ProVise CFP® professional about financial planning for seniors

At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about financial planning for seniors? Contact ProVise today to schedule a complimentary consultation.