Old or young, many people struggle with finances. We often do alright at managing our day-to-day needs, but struggle when it comes to looking further ahead.
The issue is even more significant for seniors, who face unique challenges that aren’t present for other age groups. This includes the need to think about options like aging in place or assisted living, along with significant medical expenses and decreases in income.
Talking to your parents about finances may seem difficult, especially if your parent thinks that they are managing their money just fine. Even so, the process is critical. A financial advisor can be a good place to start, especially as they offer an external point of view. They may also be able to offer insights that you wouldn’t have considered yourself.
The first step is simply finding a good advisor. The tips below can help in the process.
Ways to Find a Good Financial Advisor
1. Ask for Recommendations
Recommendations are always a good place to start. They tell you about other people’s experiences. After all, some advisors may sound good on paper, but aren’t nearly as effective in person.
2. Look at Databases
There are also online databases for financial planners. The most significant ones are FPA PlannerSearch and the National Association of Personal Financial Advisors database. These sites help you be sure that the person you’re considering is legitimate.
3. Do Some Digging
Finding a name in a database or through a recommendation isn’t enough. You need to know whether the advisor is right for you. Do some background research before you contact them.
You can often find the information you need online, including the areas that the person specializes in and any reviews about them. Check out their certification too and whether they feature in any trustworthy databases.
4. Be Cautious
Financial advice can have a dramatic impact on your life, so making a wise decision is critical. Part of this is that you need to be careful about any claims that individuals or companies make. Fact-check as much as you can to be sure that you’re getting the real deal.
For example, some financial advisors claim to have qualifications that aren’t real or are misleading. There are also titles like ‘senior specialist’ that don’t mean much at all. The Consumer Financial Protection Bureau offers about ways to evaluate claims.
It also helps to look for fiduciaries. These individuals will be focused on your best interests, rather than receiving commissions for making specific referrals. All of the individuals in the NAPFA database fall under this category.
Unfortunately, fiduciary financial providers will charge a fee – they have to make money somehow. Still, at least you can be sure that their advice isn’t going to be biased by external obligations.
5. Meet in Person
When you’ve found a financial advisor that seems promising (or more than one!), set up a meeting. This gives you and your family member the chance to see whether the advisor is going to be what you need.
Make sure you bring with you any important details. You’ll also want to talk about what you’re looking for in a financial advisor and the financial outcomes you’re working towards.
6. Don’t be Afraid to Say No
If the first person you try doesn’t seem like a good fit, that’s fine. You’re not going to get the same benefits from a financial advisor that doesn’t suit your needs. Don’t be worried if you need to walk away and talk to someone else instead.
Final Thoughts
If finding external advice from a financial advisor is not an option for you or is something that you don’t want to do for different reasons, there are several ways you can learn more about how to manage and invest your money on your own.
A simple approach that we’re fond of is the Clever Fox Budget Planner. This inexpensive book steps you through the processes of creating a budget for yourself, making everything much easier.
There are also powerful books and courses that focus on helping you to get a handle on your finances, including some that are targeted at seniors. An example is The Ultimate Retirement Guide for 50+, which offers much needed advice about finances following retirement. The same author has a variety of other books in the financial fitness field.
You can find great value around the web too, such as in the article by NerdWallet that focuses on where you can find cheap or free financial advice.
As always, you’ll need to examine the various options in depth to find what works best for you.
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I like how you mentioned that it can be hard to talk to your parents about finances. My dad is so stubborn when I talk to him about his finances. I’ll see if I can find an advisor that is around his age who can help him out.