Cortburg Speaks Retirement

5 Ways to Help Your Parents Prepare for Retirement

June 22, 2022 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2022 Episode 89
Cortburg Speaks Retirement
5 Ways to Help Your Parents Prepare for Retirement
Show Notes Transcript

On this week's audio podcast, Miguel Gonzalez shares 5 ways to help your parents prepare for retirement.  

Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

On this week’s audio podcast, I talk about being retirement ready by sharing 5 ways to help your parents prepare for retirement.  

The sandwich generation is a term commonly used to describe those between the ages of 40 and 59 who are responsible for raising their family and are also often helping their aging parents manage their ongoing needs. Those members of the sandwich generation typically manage the burdens of the old and young at once. They may support a grown child, aging parents, and young children.1

The key for many people in this generation is to provide guidance and support to their parents without derailing their own life and long-term goals. Here are some tips that may help.

#1: Get Ahead of Medicare and Medicaid Programs

Find out if your parents qualify for any financial assistance programs. These programs may help defray some of the costs while creating more opportunities for savings. For those over the age of 65, Supplemental Security Income may be an option. 2

#2: Evaluate Your Parents’ Financial Needs

It may be helpful to spend some time discussing your parents’ financial needs. This effort may include taking a look at their current income and debts. It may involve finding ways to manage their expenses. It is also a good idea to consider how much money they need each month to manage their financial obligations during retirement. These expenses may include a mortgage loan payment or other long-term financial obligations that may carry over into retirement years.

#3: Determine if Downsizing Is Beneficial

Downsizing may mean moving to a new home that is smaller with a lower mortgage payment. It may mean moving from a house into an apartment or condo with fewer maintenance tasks. If the market conditions make sense, it might be time to consider a move to manage financial obligations.

#4: Create a Budget for Retirement

With a solid understanding of financial needs, it is then helpful to create a monthly budget. A budget shows if there is a need for more income. If there is, it may be time to consider options to manage financial needs, such as working a part-time job or using retirement savings differently.

#5: Manage Expectations

Sometimes it is necessary to consider limitations on spending to ensure there is long-term access to available funds. For seniors, it may mean controlling their spending on unneeded items. This evaluation could mean spending more time balancing accounts for those struggling with finances. Before heading into retirement, the key is to ensure there are clear expectations of what retiring is likely to be like for them and what your parent’s lifestyle will look like during retirement. 3

It is important to talk to parents who may need some help in the years leading up to retirement to clarify where they stand in terms of finances. Doing so now may help determine what changes could create better financial results later. Working with a financial professional may be one step for your parents to consider. 

 

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

·         The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

·         All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

·         This article was prepared by WriterAccess.

1 The Sandwich Generation, Pew Research Center,
 https://www.pewresearch.org/social-trends/2013/01/30/the-sandwich-generation/

2 How to Help Your Parents Retire Without Derailing Your Own Retirement, The Motley Fool,
 https://www.fool.com/retirement/2019/08/25/how-to-help-your-parents-retire-without-derailing.aspx

3 How to Help Your Financially Struggling Parents, The Balance,
 https://www.thebalance.com/millennial-plan-to-help-parents-financially-4134994