Since millennials (men and women age 22 to 37) are just getting started managing their money and launching their careers, many of their boomer parents are giving them financial advice. But here’s a twist: Some millennial kids are trying to help their parents get a better handle on money, arranging for their moms and dads to meet financial advisers.
In certain cases, the millennial is going to the adviser meeting with a parent. Other times, the millennial wants parents to see a financial adviser so the child has clarity about which responsibilities may be expected of him or her in the future.
A 2017 Merrill Lynch/Age Wave study of family members who are “financial caregivers” found that 53% of the care recipients need full assistance with their finances. As Age Wave CEO Ken Dychtwald said, “The idea of being a financial coordinator is a little bit complicated. People are doing it honorably and with respect, but without much guidance. They’re kind of winging it.” Financial and estate planning topics are often considered taboo in families. But when they aren’t discussed, millennial children can find themselves with surprise responsibilities they haven’t prepared to undertake.
In certain cases, millennials wind up getting power of attorney for their parents, so they’ll have the authority to manage the finances if mom or dad becomes unable. The millennial children sometimes want to meet with their parents and a financial adviser to help prevent their moms and dads from being elder fraud victims, perhaps due to cognitive impairment.
How do the boomer parents react when their millennial kids try to help with their finances? Often, quite well. “I see families coming closer together because they are all appreciative,” said one financial planner.
You can find the full article at Next Avenue.