A brief reminder to look out for your parent’s financial wellbeing during this unprecedented time.
April is Financial Literacy month in North America. During this time, we should take a close view at the financial strains we may be experiencing, but more importantly, our parents. If they are well into their retirement years, take this opportunity to help them assess or reassess their finances. One of the biggest fears most have of retiring is outlasting monies saved for this time of life. Don’t underestimate this point; it can be a stress point that may not be visible to you but is always on their minds.
Start simple
You can start with a simple cash flow analysis. What is your parent’s income, and what are their expenses each month? Pensions and benefits are generally paid monthly, while annuities tend to be on a quarterly schedule. Ask about all types of income and expenses, so you have a full picture. Once done, you know if they have enough money each month and potentially what they need to cut back on or put into other assets.
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