For many of us retirement is a daunting thing to think about. Sometimes it is even more daunting to think about our parents retirement then our own. We feel like we can control our own retirement while we don’t have much control over our parents’ retirement. Often times we worry more about our parents and their retirement situation simply because we have no control over it or because we have no idea how secure their retirement is. Here are a few tips to help you stress less about your parents retirement situation.
Get In The Know
You must start out figuring where your parents are at with their retirement nest egg and how long that will be able to last them. It means you will need to figure out what their expenses are and incomes. Figure out the big picture so you know if they are ok or if they are going to need help in some way.
Part of this means you will want to find what type of retirement accounts your parents own. If they do not have any accounts I would strongly suggest that they open up an IRA or 401k or if they want more control of their investments you can get a self-directed account. A self-directed account can be in the form of an IRA or 401k.
This also includes making sure they are going to have all the necessities of life secured while in retirement. The main goal here is to make sure you know if they will be staying in their current home or moving to a new location. The follow up would be to make sure they are going to be able to pay for the mortgage on the place they will be living at in retirement.
Talk With An Expert
Experts are a great way to bridge the gap. There are many of us who just don’t know enough about retirement that we don’t know where to start. If you fall into this category an expert can really help spell everything out nicely (where your parents are at, where they should be at and what this means). While not all experts are created equal one way to help find a higher quality expert is simply by word of mouth from those you trust.
Focus On Your Retirement
For most of us it isn’t likely that you can take on complete responsibility for your parents financial support while in retirement. So what should you do? The worst thing you can do is to try to help your parents out at the detriment to your own retirement. You don’t want to put your children in the same position that your parents put you in. If you stop the cycle your children will be better able to support themselves while in retirement..It can be hard to say no sometimes to parents but sometimes that’s what it comes down too. Remember, you can help your parents financially while they are in retirement but there are probably only a few select circumstances where you would actually want to help them at the detriment to your own retirement.
Time has a way of changing things. Sometimes for the good and sometimes for the bad. Because of this you will want to do regular checkups on your parents financial situation so that you aren’t blindsided by any changes to their retirement security. One thing to remember is that health is a huge factor to financial security so beyond checking in to see how their finances are doing it is important to make sure you check out how they are doing mentally and physically as that can really change the security of their retirement.
Hopefully by following some of these rules you can sleep without the worry of your parents retirement financial situation.
If you would like more information on self-directed accounts contact us today
Author: Nick Barker