We tend to put off the subject of financial planning with our parents for whatever reasons.
However, by discussing these issues with our parents early will have greater benefit and enjoy greater peace of mind.
1) Living expenses
Parents need to feel comfortable about their situation and assurance that whatever money worries they have, their children are there to help them.
2) Medical history
Educate yourself about your family 's medical history. Make plan to take up medical insurance for your parents.
3) Medical Fund
For older parents who might not be in the pink of health or who might be too old to buy health nsurance, will be more practical to start a 'Medical sinking fun" This will also minimise potential disputes among siblings who should foot the bills.
4) Annuities
An annuity helps to ensure that one does not outlive one's resources as it pays out a regulare sum of money for as long as the policyholder lives.
5) Long-term care
Do your parents want to live in their own home, with you, or in a home for the elderly ?
6) Investment portfolio
For parents who do not need the money. children can help them start a regular savings plan and put this money on a monthly basis into an investment instrument such as a unit trust or relatively conservative portfolio, such as bond.
7) Sublet parents' home or opt for reverse mortgage.
For those who are unable to give the amount their parents need, one way to raise funds is for the parents to sublet a spare room for additional income.
A reverse mortgage on the parents' house is another option. Howver, the parents wil need to decide whether to release the equity in their home or not. And it is important that they understand the overall value of their home will diminish if they opt for a reverse martgage.
This has an impact on your parents' estate, it is vital for the whole family to be in the picture.
8) Downgrade or live with children
9) Power of attorney
This gives one or more people the legal right to manage your parents' financial affairs, in case of they become ill or mentally incapable.
10) Will
Review wills with a solicitor at least once every five years to have the latest updates, such as any new born, relatives might have died and marriages might have been dissolved.
11) Legal documents
They are kept in safe place known to the executors of your parents' estate.
12) Estate planning
Broach this subject by asking your parents' what they want to happen to their estate when they are no longer around.
