Anyone discuss the topic of finances with older parent?

[luvwinnie]

When my parents sold their house in 2003 they put the money into their savings account and there it sits. My dad's intention for the money is to leave to us, his children. I want to suggest to him he at least put a portion in a CD to get better interest...I just don't want it to come across and me telling him what to do with his money. Anybody broach this subject with their parents?

 

[golfgal]

When my parents sold their house in 2003 they put the money into their savings account and there it sits. My dad's intention for the money is to leave to us, his children. I want to suggest to him he at least put a portion in a CD to get better interest...I just don't want it to come across and me telling him what to do with his money. Anybody broach this subject with their parents?

My Dad is on top of things financially but I worked for a CPA once and she had many elderly people come in with checking or savings accounts like this. What she usually recommended was that they put the bulk of it in a 1 year CD and then have a few thousand in CD's that matured every 3 months and stagger them so one would mature in 3 months, one in 6 months and one in 9 months. That way they would have access to that money if they needed it for something, if not, they just roll over.

I think if you approach it saying this is how much more interest you would be making, using yearly dollar figures, and do something like I showed above, AND make it clear that you can't LOSE money in a CD, it will sound reasonable to them.

They should also look into setting up their finances so you don't get socked with inheritance taxes. Maybe just a general appointment with a financial planner or lawyer would be a good idea.

 

[Microcell]

I had a grandfather that told me that he planned to leave his legacy to his children, and by extension his grandchildren. I didn't have the heart to tell him that my dad and his wife would never consider passing it to us, but rather to charity when they die. He passed, and left us grandkids some money, but I think the bulk of it is going to my dad and his sister. Too bad. I just didn't think it was my place, but I was not his child.

How old is your dad? If he is in his 80's or 90's I think I wouldn't say anything, you will probably be getting it sooner than you want. If he is in his 70's I would broach it as "You might want this money for a rainy day, so why not grow it in case you live longer than you think and need to live on more of it".

My aunt lived to be 91 and when she was 88 or so, she told me finances were tight and said "When we saved for this time, I just didn't think I would live this long" She lost her own mom young and her sister in a car accident, so she didn't know how the genes would work!

 

[luvwinnie]

My Dad is on top of things financially but I worked for a CPA once and she had many elderly people come in with checking or savings accounts like this. What she usually recommended was that they put the bulk of it in a 1 year CD and then have a few thousand in CD's that matured every 3 months and stagger them so one would mature in 3 months, one in 6 months and one in 9 months. That way they would have access to that money if they needed it for something, if not, they just roll over.

I think if you approach it saying this is how much more interest you would be making, using yearly dollar figures, and do something like I showed above, AND make it clear that you can't LOSE money in a CD, it will sound reasonable to them.

They should also look into setting up their finances so you don't get socked with inheritance taxes. Maybe just a general appointment with a financial planner or lawyer would be a good idea.

Thank you. There isn't enough for us to be hit with an inheritance tax.

 

[mickeyboat]

Yes. I have talked to FIL about his financial situation, but it has been at his request.

My biggest concern with him is that he does some medicare/medicaid planning, and that he get a will and some advanced directives in place. He keeps asking me to print something off the internet where he can fill in the blanks. Come on, be a big boy, bite the bullet and see a lawyer. It will be money well spent.

Good luck to you. I think I might brooch the subject by looking into some higher interest CD's you have found, and ask him if he would be interested. But if he balks at the idea, then let it go. Maybe he doesn't want to tie up the money in case he needs it someday.

Denae

 

[luvwinnie]

I had a grandfather that told me that he planned to leave his legacy to his children, and by extension his grandchildren. I didn't have the heart to tell him that my dad and his wife would never consider passing it to us, but rather to charity when they die. He passed, and left us grandkids some money, but I think the bulk of it is going to my dad and his sister. Too bad. I just didn't think it was my place, but I was not his child.

How old is your dad? If he is in his 80's or 90's I think I wouldn't say anything, you will probably be getting it sooner than you want. If he is in his 70's I would broach it as "You might want this money for a rainy day, so why not grow it in case you live longer than you think and need to live on more of it".

My aunt lived to be 91 and when she was 88 or so, she told me finances were tight and said "When we saved for this time, I just didn't think I would live this long" She lost her own mom young and her sister in a car accident, so she didn't know how the genes would work!

Thank you. He's only 72.

 

[MouseWorshipin]

When my parents sold their house in 2003 they put the money into their savings account and there it sits. My dad's intention for the money is to leave to us, his children. I want to suggest to him he at least put a portion in a CD to get better interest...I just don't want it to come across and me telling him what to do with his money. Anybody broach this subject with their parents?

If your father doesn't have cognitive issues that require you taking over his affairs, then I would stay out of it. It may very well be that he doesn't need any more money than he has.

 

[DVC Sadie]

I think it all depends on how you go about talking to your parents. If a child is financially independent and is doing well on their own then the parents would more than likely not have a problem with discussing ways of earning more interest or seeing an Estate Attorney. If the child is not in good financial shape sort of speak it could come across as being pushy or even demanding, therefore I would not recommend discussing it at all.

Evey family dynamic is different but one bit of advice would be to proceed with caution and if deciding to discuss finances then it should be done by the child and not in the presence of daughter in law/son in law.