As the baby boomer population continues to settle into their retirement years, they’re taking most of the right steps in securing their financial future. However, the vast majority are missing an essential piece of the puzzle—they’re not including their adult children in the discussion.

It’s a serious mistake that can significantly affect parents and children alike in the long run. So, while you may have some pre-conceived ideas on the subject, read on to find out why collaboration is essential when planning your financial journey.

Parents: Your Kids Aren’t Kids Anymore

You may be thinking, “I’m the parent. They are my children.” That’s the familial hierarchy and how it’s always been. You’ve never involved them in your finances before, so why now? Why expose your financial status to your adult children before you have to? They don’t have as much life experience as you, so you may question whether they can even oversee such matters.

The fact is your adult children are already well-versed in financial planning. More than likely, they have their own investment accounts, retirement plans, and even wills—particularly if they have children of their own.

They know—and can handle—more than you think.

Since your children came into your life, your priority has been to protect them. And while you may view shielding them from the delicate topic of financial and estate planning as an extension of that lifelong protection, the opposite is true.

It’s better to enroll them in the process now when you can have informed discussions—where they can hear from your own lips what your wishes are, what you have in place, and where they can find it—rather than later when you’ve fallen ill (or worse) and may not be able to tell them about your plans.

The reality is when crisis strikes, your children may be given the daunting task of locating estate documents, investable assets, insurance policies, and other necessary documents—all while grieving or dealing with the situation at hand.

But when they’re aware of your intentions and understand where to locate essential documents, they will be better prepared and less overwhelmed when dealing with these formalities.

Think of it this way…

When your children were little, you’d never let them blindly cross the street alone without taking your hand. So, why would you let them blindly walk through this challenging time without your helping hand to guide them?

Looking forward to financial confidence? Schedule your complimentary consultation with a Wealth Enhancement Group advisor.

Children: Don’t Be Caught Off Guard

As the child, you don’t want to entertain the thought of something bad happening to your parents. You can’t even think about it, let alone talk to them about it. You just can’t go there. All is well now. They’re good, they’re healthy, so why even discuss their long-term desires and financial plans?

I urge you to reconsider. One uncomfortable conversation today can make all the difference tomorrow—for you, your siblings, and your parents.

Let’s say one or both of your parents becomes mentally incapacitated and unable to make informed decisions. You’ll need to step in and take charge during what will be an overwhelming and emotional time. Think of how much smoother it would go if you understood their intentions in advance. Think of the hassle you could avoid if you already had a relationship established with their financial advisor, a relationship that you could lean on for expert guidance.

When you know where everything stands and whom to call for help, you’ll be able to confidently make decisions that not only protect your parents’ best interests, but also put their minds at ease so that their wishes and plans will be honored.

You may also be able to avoid sibling arguments that commonly surface during times like these. Sure, your sibling relationships are on a steady footing now. But that can change in an instant when emotions are high and assumptions are made. It’s all too common that one assumes one thing, and the other assumes something else, all with the best of intentions, as everyone believes they know what’s best for their parents. The problem is nobody really has all the facts—that is, unless everyone proactively sits down together to lay it all out on the table.

We understand that this isn’t a fun conversation to have. But isn’t the temporary discomfort you may feel today worth the peace and comfort you’ll feel later when the time comes?

Make the Unavoidable Easier for Everyone

Because one’s passing is inevitable, proper generational wealth planning is an essential part of any estate plan. The nuances of estate planning can be tricky, especially when confronting a beloved family member’s mortality. Anyone’s end-of-life wishes should be supported, but this can be one of the more difficult conversations in life.

However, it doesn’t have to be. An experienced financial advisor can help you have better estate planning conversations with your loved ones. They can be an unbiased third party that can work to get everyone on the same page before it’s too late.

• Parents: Talk to your adult children. Let them know where necessary items are and how they should be managed. Include them in conversations with your trusted advisors and ask for their thoughts.
• Children: Broach the subject with your parents. Don’t be caught off guard later when you’re dealing with the myriad emotions and burdens that go along with a parent who’s fallen ill or has passed. Inevitably, you’ll be the one making decisions on their behalf. Make it easier on yourself while respecting your parents’ wishes in the process.

Maximize Generational Wealth Planning with an Experienced Team of Advisors

At Wealth Enhancement Group, we use a team-based approach we call the Roundtable™.

Our nationwide team of professionals collaborates to cover all aspects of your financial life, including financial planning, retirement income planning, tax strategies, investment management, estate planning, and insurance to build your comprehensive financial plan.

To learn more about how these strategic partnerships can help you create a plan that’s unique to you, reach out today for a free, no-obligation meeting.