With the holiday season approaching, many of us are looking forward to favorite traditions like gathering for a big family dinner, watching a classic movie or relaxing by the fire together.
It’s also an ideal time to discuss how important decisions should be handled as your life changes.
Of course, these conversations are not always easy.
In fact, a new Fidelity study on later-in-life conversations found that as families age, they actually talk less about the topics that matter most.1
Even among financially prepared households, discussions often stall when it comes to three critical issues:
#1—Decision-Making and Change of Control: Who steps in if you can’t make financial or medical decisions?
#2—Dependence and Dependent Living: What’s the plan if living independently becomes difficult?
#3—Thinking Ahead for a Health Incident: Do loved ones know your wishes and how to access important information?
Fidelity’s research shows these conversations drop sharply around age 70, just when they become most urgent.
Also, nearly nine in ten baby boomers say at least one emotional barrier keeps them from talking about later-life issues, including not feeling prepared or not knowing how to start.
According to the study, baby boomers rank thinking ahead for a health incident as one of their most relevant topics. Yet, it’s the topic they’re most unwilling to talk about.
And while many describe their family communication as “open,” two-thirds admit they aren’t actually discussing the topics they consider most relevant.
The study also found that families who have active, ongoing conversations report more confidence that their plans will unfold smoothly, and feel closer as a result.
If you haven’t revisited your plan for these situations, now is the time.
We’re happy to help you:
- Review or update your powers of attorney and health-care directives.
- Clarify who makes what decisions and where key documents are stored.
- Model how long-term care or a sudden health event could affect your finances.
[RELATED]: Longevity plays a major role in how long your plan needs to work for you. We discuss this and two other key considerations in our post, 3 Critical Retirement Planning Dynamics.
Let’s make sure your financial plan reflects both your wishes for care and decision-making.
Sincerely,
–David Bunker, Financial Advisor & Licensed Fiduciary
P.S., In case you missed it, check out our latest blog post: 5 Financial Moves to Make Before Year-End
Before You Go
Get help optimizing your retirement income. Download our FREE “Prolonging Retirement Income” checklist.
Also, receive help retiring to the life you want, schedule a complimentary financial planning consultation.
This communication was prepared with financial writer Sharron Senter’s assistance, based on interviews with David Bunker, a financial advisor and licensed fiduciary.
Source:
1: Fidelity, Later-in-Life Conversations Study, https://www.fidelity.com/bin-public/600_Fidelity_Institutional/fidelityinstitutional/Application/AP168302/family/TGP_LIL_Report_FCFE_FINAL.pdf