Preserving Wealth
There is a old joke from The New Yorker. Two men are sitting in an office and we can see a large industrial complex out the window. The older man, the father, says to a younger man, the son, “It’s all yours. Don’t loose it.”
This is a very important concept. Many, many people around the world are rich because they were given a fortune and didn’t blow it. There are a larger number of people who are not so well off because the lost their wealth. This can be due to any number of things, but preserving wealth is important than building it.
Boomers are now at an age where demands are being put on our financial resources from three generations: our kids, our parents and our selves. One way to lighten the load is to make sure your kids and your parents act responsibly with the assets that they have. Dealing with children is one thing. Parental finances is something totally different, but potentially more important.
If your parents finances fail who will they fall back on? You’re thinking the government. Who will the government look to for your parents’ well being? In many cases you. Though you may only think of your parents wealth as your inheritance it can be worse. You have skin in the game and didn’t even know it.
There are many aspects of financial assistance and advice that are important. Living wills and long term health care are just two. One of the more insidious ones is the world wide industry that is trying to steal your parents’ money.
The spread of large amounts of personal information along with cheap telecommunications and internet financial services has made defrauding the elderly a world wide enterprise. The front page story in Sunday’s New York Times goes into substantial detail, but the element it skips over is the role of the children and other relatives’ of the elderly in the financial loss.
Because the elderly are neglected by their relatives they can become easy prey for these thieves. If someone had gotten involved with the people mentioned in this story the theft might have been prevented.
Another reason to understand your parents or other elderly relatives’ financial situation is the need to intervene in a health crisis. If they are incapacitated and cannot help with the knowledge of their financial situation there is risk of loss, discomfort and serious health consequences.
Bottom line: Get your own financial affairs in order and then make sure your parents have their’s in order in a way you can understand. Then, keep in touch, keep in touch, keep in touch.
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POSTED IN: Being A Boomer, Finance, Health
1 opinion for Preserving Wealth
Janis Pettit
May 21, 2007 at 4:22 am
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