Make Family Gatherings Count
“Parents are good at preparing the money for the person, they are often less good at preparing the person for the money.”
—Jess McGawley
The holiday season is here, and for many that means meaningful time spent with loved ones. This year, we encourage you to be intentional with this time and use it to accomplish what most are fearful of: having an open, honest conversation about money. Talking about money and financial topics can be stressful, though most of us realize that these conversations are a necessary evil. Why not take advantage of this built-in time to start the conversation?
We find that most families put off discussing financial matters until it’s too late. Take our word for it--waiting to broach this sensitive topic can make it even more awkward, confrontational, and emotionally charged. Too often we have the unfortunate experience of witnessing underprepared parents passing away or ill prepared children inheriting assets. It doesn’t have to be this way. A family meeting can make all the difference.
A family meeting is where you, as parents, include your children and trusted advisors in a group discussion about your financial plan. A structured conversation covers topics like your beneficiary designations, the named executor of your estate, whom the surviving spouse or children should call first when something happens, and what is most important to you about how your money is used when you’re gone.
Although it’s not always required, these meetings work best when parents disclose specifics of their financial situation, as it’s helpful for heirs to know about their parents’ assets and liabilities. We strongly encourage a family meeting where these things can be discussed, and it’s helpful to include your financial advisor, estate planning attorney, and CPA in the discussion. Your financial advisor can and should take the lead in coordinating your family meeting and moderating the conversation.
The conversation that takes place should include more than just the logistical aspects of your finances. We think it is also important to bring your family into your financial life for many intangible reasons because:
- It will allow you to tell a story and reminisce about how you accumulated your nest egg. What a wonderful opportunity to impart in your children and grandchildren important values about money and discuss charitable causes that are dear to you.
- It will give your children a window into their own financial future. Your financial situation likely impacts theirs, so providing clarity around their future inheritance may affect the planning they need to do.
- It will provide an opportunity to ask for help. Proactively discussing the topic of aging with your children is especially important as they may need to step in at some point to oversee your financial affairs or provide care.
At the Perry Richey Group, our team strives to be the most trusted advisor for each of our clients, fully understanding their unique financial picture. Work with a financial advisor who knows your plan inside and out and encourages you to be more transparent about your finances through a family meeting.
Happy holidays!
Shawn Perry
JG2023-1116*