The Baby Boomer generation is continuing to settle into their retirement years, and the Gen Xers are fast on their heels. Many members of both generations are taking the right steps towards securing their financial futures.

But there’s one part of the equation that many are missing—they’re not including their adult children in the discussion.

Why To Include Your Adult Children in Financial Planning Discussions

Your adult children are a critical part of your financial planning discussions. If they’re a part of your life, they should have a seat at the table and input in discussions. Not only are they the future of your family, there’s also a chance that they might have to make decisions on your behalf as you age.

Different families talk about finances in different ways. Some are incredibly open about the realities of their financial situations; some only discuss it when they need to; others consider talking about money taboo. If your family isn’t having open and honest conversations about finances and wealth, it’s time to reevaluate. The process might not be easy or comfortable for you, so we have some suggestions on getting started.

Having the Conversation: Things for Parents To Know

You may be thinking, “I’m the parent. They are my children.” That sense of familial hierarchy can be deeply ingrained and difficult to overcome. You’ve never involved them in your finances before, so why start now? Here are a few considerations:

•  They’re not kids anymore. Your adult children are probably already well-versed in financial planning. More than likely, they have their own investment accounts and retirement plans. They know—and can handle—more than you think.
• The time is now. Like it or not, life will continue marching onwards. You may not be as capable in the future as you are today. It’s better to discuss finances with your adult children now when you can have informed discussions. Today, they can hear from your own lips what your wishes are and what you have in place. Tomorrow, you may not have that chance.
• Protecting your children means communicating with them. Since your children came into your life, your priority has been to protect them. And while you may think shielding them from the delicate topic of estate planning is an extension of that protection, the opposite is true.

Estate Planning Is Critical for Retirees With Adult Children

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 your 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?

One conversation today can be life-changing for both you and your children. If you’re not sure where to start—or if you understand how much work, you have to do—the team at Wealth Enhancement can help.

Tips for Financial Planning Conversations With Adult Children

The most important part of talking with your adult children about financials is to avoid being caught off guard. Here are some benefits of having these conversations:

Start your planning early

If you or your spouse become mentally incapacitated and can’t make informed decisions, your children will need to step in and make decisions. Imagine how much smoother that would go if they understood your intentions in advance.

In the future, there will be no antidote to a missed conversation. Make it easier for everyone down the road by discussing the details today.

Organize financial and legal documents — and tell your children about it!

Retirees, or near-retirees, should certainly have organized financial and legal documents. A sound organization method can mitigate significant hassles for yourself, your loved ones, and your financial advisor, across a variety of situations.

However, a big part of organization is ensuring that your children know where those documents are, and how to access them should they need to. Your organizational method will be worthless, even detrimental, if the right people aren’t aware of how it works.

Plan for arguments and emotional concerns

If you have multiple adult children, consider talking about the emotional side of financials as well. Even if sibling relationships are on steady footing right now, that can all change when emotions are running hot. One wrong assumption or errant comment can derail years of history.

While estate planning and after-death scenarios are front of mind in these discussions, arguments and emotions can crop up during any financial conversation. Wealth Enhancement has developed a Behavioral Wealth Management™ Model that’s designed to help you and your family make between financial decisions—especially during stressful life challenges.

The Bottom Line: A Guide to Financial Planning for Retirees and Their Adult Children

• 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.

Make the Unavoidable Easier With a Financial Advisor

Your eventual passing is inevitable, so proper generational wealth planning is an essential part of any comprehensive financial plan. The nuances of estate planning can be tricky, especially when confronting a 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.

Optimize Generational Wealth Planning With an Experienced Team of Advisors

At Wealth Enhancement, 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.

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