Discussing Money With Your Aging Parents

April 4, 2014


The core of this week’s show is staying informed with your parent’s financial situation. Brian and Bo cover what you need to know and when it makes sense to discuss finances with your parents or children.

It is very important to have everyone in the family on the same page and make sure the parents are expressing their wishes without any pressure to make certain family members are happy. The guys put together a quick checklist of topics to consider when starting your conversations:

  • Know the desires of your parents;
  • Know the type of healthcare and life-saving measures they desire;
  • Know who your parents want to make legal and medical decisions for them, in the event they are unable;
  • Know how they want their assets to pass (if not covered in their will);
  • Have discussions about intra-family support for aging parents concerning: living arrangements, hospice care, or nursing facilities;
  • Beware of elderly abuse, specifically financial abuse. The Center on Elder Abuse has a great FAQ section that highlights the warning signs of financial abuse from caretaker and others that may spend significant amounts of time around your parents.
  • Discuss medical insurance options and review Medicare coverage’s as well as long term care insurance where it applies.
    • Brian discussed the “typical” donut hole of coverage where LTC insurance makes sense:
      • <$1,000,000 in assets – Medicare coverage is most likely sufficient.
      • $1,000,000 to $3,000,000 – Is our donut hole, where we think LTC insurance makes the most sense.
      • >$3,000,000 – You have probably won the game and self-insurance could be the best route for coverage.

Be sure that family members that are providing assistance are not jeopardizing their own financial situation to provide care for their parents (this includes you). This week’s show is important for all families that have aging family members, and should be used as a guideline for discussion when having those important conversations.

Most Recent Episodes

Can Money Buy Happiness? (Here’s the Truth)

Money and happiness aren’t directly correlated, but they are intertwined. Some believe that once they have a large, pie-in-the-sky amount of money, they will finally be happy. Others are working towards a more specific retirement number they hope will bring happiness....

Passive Income EXPOSED: 3 Ways to Actually Make Money (2022 Edition)

Passive income is a dream for many looking to get out of their 9-5 or just create extra income on the side. In this episode, we’ll break down different ways to actually earn passive income in 2022. In this episode, you'll learn: The easiest and hardest side hustles...

Millionaires Share Their Secrets to Financial Success! (2022 Edition)

It’s that time of year again: our annual Money Guy Wealth Survey episode. We’re back with all-new data for 2022, including new questions. You’ll learn who millionaires are, what they did to get there, and how they built their wealth. In this episode, you'll learn: The...

Dumb Financial Decisions That Americans Make! (Do You?)

Throughout our years of doing the show, we’ve seen more than our share of financial mistakes. Some are more common than others - in this episode, we’ll discuss some of the dumb financial decisions Americans make - and what you can do differently. In this episode,...

3 Things You SHOULD Spend Money On (Even During a Recession)

When is it okay to start spending money on things you want, but may not need? In this episode, we'll discuss when you can start spending money on "unnecessary" purchases, and what goods, services, and experiences are worth spending money on. In this episode, you'll...

3 WORST Types of Financial Crooks (Don’t Get Scammed!)

In the financial world, there are a lot of crooks that try to get into your pockets. From metaphorical crooks selling a bad product to literal crooks stealing your money, we'll cover the different types of financial crooks to watch out for and how you can protect...

Financial Advisors React to NFL Players Spending Their First Million!

Not many Americans will ever make over one million dollars in a year, but professional athletes regularly make that and more. In this react video, we'll see how NFL players spent their first million dollars after making it into the league. As we review their mistakes...

Everything You Need to Know About Real Estate Investing!

Over the years, we have had some great conversations about real estate investing. In this episode, we put together the ultimate guide to show you everything you need to know about real estate investing! In this episode, you'll learn: How to get started in real estate...

The Truth About The FIRE Movement! (Is FIRE Still Possible?)

Since the advent of the FIRE movement several decades ago, we have never experienced a period of higher inflation until now. With the market down over 20% and inflation at 40-year highs, is FIRE still possible in 2022? If it is, what does it take to become financially...