A recap of all 7 episodes from this Your Parent's Money Mindset series to help you take positive action

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Welcome to the EnjoyMore30s Family Finance

podcast. The only podcast dedicated to making life more

enjoyable for young families by hitting on the financial topics

that tend to weigh on us stress us out and distract our focus

from simply enjoying life.

Hello, and welcome to the series three, Your

Parent's Money Mindset series recap. We really covered a lot

so far this season. We talked about bridging that initial

financial conversation gap, better understanding your

parent's existing mindset, how titling and account types will

affect what you receive, to really the major medical

expenses and exposures. That's a lot. It's valuable, actionable

information but as I always say, at the same time, we don't want

to be overwhelmed by it, right? If we take positive action on

one of these seven relevant episode topics, you and your

parents this time around, are better than you were before. And

you should really be proud of that. You're improving not only

your life, but your parent's life too. The people that have

really looked out for you since you were born. We also want to

make sure we're remembering the goal, remove anxiety and

financial worries so we can focus our energy on what matters

most, enjoying more living with family and our friends of

course. Whether it's our own financial anxiety or that

anxiety derived from our parents well being the same end result

is reached. So the kind of worry that goes away when you know

your parents aren't going to run out of money. Knowing your

parents are covered medically and not going to come live with

you kind of worries you might have. Know where you're going to

have to go to or talk to when your parents pass away kind of

worry. Know how to handle some of what you may receive when it

happens, worry. So be proud of all these steps as you take

them. You're making life more enjoyable than for you and as

that natural consequence based on this series, for your loved

ones as well. Lastly, stay tuned to the end as we're going to be

announcing our focus for the next series to come, which is

always very exciting.

So without further ado, get together with your spouse and

let's review. Number one, how to talk with parents about money.

So the main point from this initial episode here is to

acknowledge that money is hard to talk about. But there are

very significant reasons why you should think about having those

conversations with parents. The first is to head off any bad

track earlier than later. No surprise they have to come live

with you. And secondly is the reverse of that, where if

they're in a good position to get them thinking about making

the most out of their money that they've worked so hard to earn

over their lifetimes. Either way, know that they are almost

certainly coming from a very different money mindset. So

remember, very likely no public Venmo purchases with emojis.

Lastly, start bridging that gap by asking very basic financial

preference questions. So how many banks do you use? Do you

like credit cards or cash? When did you start talk, talking to

somebody about investments, things like that. So those that

are kind of expressing maybe concern without being invasive?

Again, the goal is to start a conversation, not tell them why

they're wrong.

Number two, your parents trust their advisor. The main point

here from this episode is if you were able to form that

conversation around money with parents, don't underestimate the

trust they likely have in whoever they're already working

with. Your parents are older, they've likely been working with

them for a very long time. Secondly, while you may be used

to asking why-based questions, your parents may not be. They

didn't grow up with the internet to fact check or self research

everything. If the professional said it was this way, then many

times you just kind of went with it. You didn't have any other

options, you can go research it on your own very easily. Lastly,

if you are able to ask some more thought provoking questions. So

for example, what life expectancy assumption did your

advisor make? How does your annuity actually work? And who

does it go to if something were to happen to you? What assets

transferred directly as opposed through the will and again, this

is the one that most people just always kind of assume it's all

going to pass through the will, but a lot of assets especially

annuity retirement assets, do not. Be respectful again. The

goal is to have them think and evaluate and ask your opinion as

needed. The quickest way to get shut out is to preach to them.

Episode Three, What About Mom? Surviving Spouse = CFO. This

deals with the fact that one of your parents is going to outlive

the other one. And the one that is going to be the longest

living may not be the one who currently handles the finances.

If that is the case, you are going to have to provide

significant assistance. Having both parents fluent to some

degree in what is going on financially ahead of time really

is the smartest approach. I shared how with my own

grandparents, my grandfather passed first, but because his

illnesses kind of stacked up a little bit, as time went on, he

had the opportunity to teach my grandma enough about the

finances so that now today she's able to manage. If you find

yourself needing to assist, start with organizing with what

they have. Generally the best place and starting is with the

bank accounts. Lastly, help in adding extra awareness in

certain areas for that surviving spouse, such as you know, Social

Security, where they're only going to maintain the higher of

the two. Life insurance where maybe, you know, they don't know

where the documents are, they already paid it off. So you

don't want to miss that obviously. Annuities which have

so many moving parts, many times. IRAs, which is an all

likelihood not be immediately liquidated to help ensure no

unfixable mistakes are made when it comes to taxation. And then

the last part of that, which we also mentioned, was talking

about making sure to have that appropriate power of attorney

(POA) in order. Because now with one spouse, if something were to

happen to them, you need somebody that can speak on their

behalf if you need to you your sibling, somebody.

Inheriting Assets, Opportunities and

Headaches. Here we touched on how there can be a lot of

headaches that come up, whether through incorrect beneficiaries

being listed, incompetent executors, or just scattered and

disorganized paperwork. These can significantly delay the

settling of the estate cause issues in taxation, or really

worst of all, it could mean that money goes to people they didn't

want it to go to. The best course of action by far is to be

proactively asking some questions again, to your parents

ahead of time. These are not you know, how much do you have mom

and dad? How much you guys worth kind of questions, just

questions to make sure that they have their ducks in a row. Does

everything go through your Will you have retirement accounts?

They probably don't go through your will. Are you sure who the

beneficiaries are? Do you know where any important information

is? Should I know where any important information is now, or

at least who to go to in order to find it if I need it? So

questions kind of like that.

Step Up! The Gain Is Gone. Here we covered the

current rules again, as of the spring of 2021. Were

non-retirement account gains are essentially wiped away from the

individual inheriting again, the non-retirement assets. The

second thing to make your parents aware of though, is some

of those general questions we touched on. Because quite

frankly, we find very few people have these things kind of

explained to them. So again, the broad workings of this step up

rule, you have a stock, I bought it, it's worth $50 a share, it

goes up to $120 a share, I pass away. The person that is

inheriting that account, all that gain is wiped away here.

Inherited IRAs, More Limited Options. So while the

last episode Step Up! The Gain Is Gone, could possibly be

changing with the current administration over here,

inherited IRAs already were changed back in 2019, with the

Secure Act. So this episode, we focused on how these inherited

IRAs now have new unique rules, where instead of being able to

have a lifetime distribution window, it's been shrunk all the

way down to 10 years. All the money in an inherited IRA has to

be distributed within 10 years. However, your parents do still

have some powerful options at least, in potentially minimizing

that tax and they can do that through what's called a Roth

conversion. So ask your parents, did you hear about how they

significantly changed the rules for people inheriting IRAs? Do

you know if your plan is set up to properly try and help

minimize or reduce these total taxes paid long term so that

Roth conversion can be powerful because you can take those

assets, and you can move them into a place that could be

growing tax free, instead of leaving them currently where

they may be in a place that they're going to continue to

accumulate tax deferred, meaning that it's going to be a large

growing tax burden that you may likely have to be, you know,

paying at the top of your working career.

And finally, number seven, Retiree Healthcare for Parents,

A Lot Isn't Covered. This was a really, really important one.

The takeaways here are to realize your parents may not be

fully aware of what coverage they have medically in

retirement, and could possibly be assuming they are more fully

covered than they actually are. So talk to them about what they

may have. Say that there are certain things that are only

partially covered by Medicare, and others that are flat out not

covered at all, like essentially all long term care expenses.

Remember there is that guaranteed issue or acceptance

period right after losing existing medical coverage for

obtaining that Medigap supplement. So again, Medicare

only covers roughly the first 80%. That extra 20% you do need

to fill either with a Medigap supplement or with a Medicare

Advantage plan. And even a rough plan of what would happen in a

long term care situation is highly, highly recommended. What

do you guys going to do? Do you need to use your home equity?You

have an account that you're not touching? Did you just happen

enough to be lucky to have purchased a long term care

insurance policy back in the day before the prices went up so

much? What is our plan if God forbid something happens?

And so there you go, the first series I have ever heard about

trying to help you speak with your parents about money is

complete. So take some time to review these important areas.

And remember, again, if you can make one positive change just

one, then you are one step farther along and having life be

more enjoyable for you and this time your parents as well.

If you can absorb and implement all of the items that's

fantastic. That's great. You have an ability to now really

take big leaps ahead for where most where most people

unfortunately tend to be. So I'm happy to be able to provide this

to you. If it is overwhelming, if you have questions, just want

someone to help you get all this stuff in order so you know

exactly where you are and what path you're going on, head over

to our website at www.enjoymorethirties.com.

That's enjoy more three zero s.com and click Ask Joe to

connect. I'd always be happy to help.

Overall as always, thanks for tuning in. If you enjoyed this

episode, like I always say please make sure to click,

follow, and review us on Apple podcasts or wherever you listen.

There are literally millions of young families out there I'm

trying to reach and help just like you.

Now to finish off today, I still need to share our next series as

promised, which is entitled The Main Money Misnomers. Have you

ever wondered as an advisor, what are the main

misunderstandings when it comes to money that I get most

regularly? I'm going to share some of those most prevalent

misnomers I come across, especially when it comes to

young families. We are going to cover tax refunds, goal setting,

crypto, what's actually worse than death, and even Hershey

bars. So it's a really wonderfully unique, colorful lot

of topics that you may have thought about before and with a

little information can likely worry about less than the

future. As always trying to help in achieving that goal that we

always have here of making life more enjoyable. So thanks for

joining me today and I can't wait to connect with you again

soon in the series to come.

The conversations on this show are

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professional advice for you specific situation. You shoul

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of TFS Securities, Inc., and TF Advisory Services an SE

registered investment adviso member FINRA/SIPC