A serious chat with your close family may not be optimal over the holidays. There’s a lot to do, from buying to decorating to cooking to celebrate, and it can be a lot of work. The holidays maybe your greatest chance to encourage everyone to sit down, open up and prepare for the year ahead if you’re reaching retirement age and your children are growing more independent.
Even if the meeting lasts just a few hours, there’s no reason it should be. After supper, make a pot of coffee, set out a dish of cookies, and have a discussion on the three key points listed below. For a constructive debate, the holiday spirit might be the ideal setting.
Everyone’s objectives for the next year should be made clear
It’s not uncommon for families to avoid discussing their long-term financial objectives. As a result, misunderstandings and animosity may arise.
Ask your family members what they wish to achieve in the new year. We’d want to know your own financial objectives. It doesn’t matter whether your children are autonomous or not; talking about your objectives as a family may provide an extra layer of support and responsibility. If your kid understands that Mom and Dad could inquire about how he’s saving for the mortgage, he’s more likely to increase his funds and meet the deadline.
In such a case, what can the whole family do together? Is it the right moment for everyone to buy that summer house they’ve always wanted? Is it time to book that long-awaited Caribbean vacation? Do you have a favorite charity or cause that you’d like to support in a more meaningful manner?
Check your family’s finances
Only as much financial information as a parent feels comfortable disclosing to their children is required. If your family makes use of common resources like clubs, cell phones, video subscriptions, or automobiles, each member should be informed of the associated expenses. You may expect your children to contribute to the household if they are old enough to do so and have a job to go to. They may also want to consider making their own arrangements if they are mature enough.
No one is going to the gym, and there are magazines heaped high on the coffee table because of it. The things you’re paying for each month may not be getting the most out of you.
You and your spouse may evaluate more personal budget issues, such as your food costs, healthcare payments, or insurance on that second vehicle neither of you is driving anymore, in private. A major decrease in expenses, such as selling the family home and moving into a smaller space, should be discussed with your family ahead of time to avoid any surprises or wounded emotions.
Decide on a final disposition for your estate
A good moment to talk about your last wishes is never a good time. After we’re gone, no one likes thinking about or talking about what will happen to the world after our time here is through. In the event of your death, your loved ones need to have a general notion of how you would want your estate to be handled.
No need to go into the nitty-gritty of who receives what and how it’s distributed. Tell your family who your executor is, where your vital papers are kept, what you want to be done if you become disabled, and who to contact at your financial advisor’s office if you die.
Your grown children’s estate facts should be shared as well. After talking to them, I hope this dialogue will inspire them to put out a will or healthcare directives.
A visit with us for an annual assessment of your financial plan is also a fantastic idea towards the end of the year. At your meeting, you and your family addressed your long-term and short-term objectives, as well as any major adjustments you anticipate.