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The Americans have always been opposed to discussing financial issues between family members, but a recent study by Fidelity Investments revealed that attitudes to Taboo wealth subjects change.
Fidelity Study of the mobility of the state of wealth found that 56% of Americans did not discuss family finances with their parents when they were children. From this group, 82% want them to do so because they think it would have been advantageous to have received financial education at an earlier age.
He also found that Americans' attitudes with regard to these discussions are changing, 83% of respondents saying that it is important to talk about Money management With children and 67% of parents already spoke to their children about family finances.
“Money and wealth are one of the subjects which, notoriously, simply do not like to speak historically,” Fox Business David Peterson, head of advanced wealth solutions at Fidelity Investments, told Fox Business. “Wealth is like a deeply personal experience, so in some ways, it is not surprising that people have always been uncomfortable.”
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The attitudes of the Americans with regard to financial conversations formerly taboo, revealed the study of Fidelity. (Istock / Istock)
“The study said that people are starting to break this cycle to avoid family discussions. And so clearly, if we then connect this to the Intergenerational wealth transferIt is a kind of generational difference, and what we have found is that the elderly in general – they are simply not as comfortable talking about it, “said Peterson.
Peterson has said that many Americans have experienced the complications that may arise when a parent who has not been so opened on his finances is starting to decrease, and that family members must intervene to help take care of their finances.
“When people start to reach the end of life, and they suddenly cannot manage their own finances or they no longer have the ability to make decisions around, this is where you are starting to see things somehow a little laterally, because they have not shared with their families what is their wealth, where wealth is, what it is done,” he said. “And you can find yourself very quickly in a situation where, during a really emotional period of life, people are now worried, well, how do we really manage mom's finances and dad when they can not do it themselves?”
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Peterson suggested that families approach financial conversations as a process, rather than trying to take care of all this at the same time. (Istock)
He said it is important for families to have documents such as a health care proxy or health care proxy To help navigate the health care system, as well as in the desire to live with instructions on the hopes of the individual around this. A financial proxy that disputes someone to act on their behalf on financial issues is another key document.
Families should also consider other documents and designations necessary for the end of life, said Peterson. Brokerage This can be entitled jointly with survival rights can be very easily transferred to the surviving owner, while beneficiary designations may also be included to transfer death accounts to the beneficiary.
“You need a will, which will take into account all the things that do not really have a title or a beneficiary designation,” he added. “And then, in some cases, it might be advantageous to have a trust and put assets in this trust so that they can pass, in a similar way to an account with a beneficiary designation. The trust will then define which obtain all the assets which are in the trust.”
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Fidelity's study revealed that people with financial plans have more confidence in the construction and protection of their wealth. (Istock / Istock)
Peterson suggested that to roll the ball, it may be useful to do it with understanding that it is probably not a punctual conversation and a process to relieve part of the pressure and emotions surrounding these talks.
“I think that for some people, having a very strict itinerary of what you are going to talk about very well; in other cases, this is not the case, and my recommendation is not going in the conversation by thinking that it will be a conversation to one and to due. These are conversations that are difficult to have,” said Peterson. “Listen, I'm in the business, and I remember having the conversation with my father, who has now passed, and you might think that it would be easy for me, but that is not the case, because these things are wrapped in all kinds of emotions.”
Sharing certain details on financial accounts and contact points can also be a good first step, even if it does not necessarily lead to complete disclosure on the details of the wealth of an elderly person, he explained.
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“Since the particularly older generations are not as willing to necessarily reveal all the specificities of their wealth, what I often recommend is that you share at least what it is, not necessarily the amount, but where it is; who are the key people to contact in case a family member must know more. And keep all these things in an easy -to -find place,” said Peterson.
“The first step is probably to make a really robust inventory of what exists, a report, a declaration of wealth, a declaration of net value, as you want to call it-but just this list of things so that when someone has to act on it, he knows at least where to go,” he explained. “And in this way, you somehow protect this sensitivity around quantity in all these different accounts or Banks or financial institutions. “”
Whatever the process that individual families use to build their financial plans, Fidelity's study revealed that having a plan is a baoster of trust. While around four out of 10 Americans fear losing their wealth, 78% with a financial plan said they were convinced that they had taken the right measures to build and protect their wealth, against 26% and 27%, respectively, of those without plans.
