Expert tips for navigating sensitive money conversations.
Transcript:
LENA HAAS: . It’s inherently a super emotional topic. You talk about death and it’s also very complex. So what we are hearing is about 60% of clients saying that they’ve engaged a financial professional and it really, really helps. So first, financial professional can have the role of sort of agenda setting coordinator. Who do we involve? How do we, you know, not surprise family members of a thanksgiving dinner, but come up with what do we talk about in a neutral setting? Who do we bring to is they really can take emotion out of the conversation and so they can bring in other financial professionals, estate planning attorneys, tax accountant, whoever it may be, to have a conversation that looks into, OK, how do you define what’s important to you and your wealth transfer? Who are you leaving it to and why? What are the different financial and maybe tax implications of your choices? And then thirdly, what is really helpful is to have a plan in place. So when somebody you love passes away, you are thinking about logistics, you are thinking about money, you are there with your family focusing on, you know, the heart, the togetherness and financial professional could focus on the execution that was already put together in writing predetermined.
And it’s really shocking to me the number the percentage of people who say they don’t even want to play the have the talk about a third and then another third. They assume like I talk to my children, they know what’s going on. Yeah, you mentioned it in passing to your eight-year-old 10 years ago. That doesn’t count. You need to have the conversation. So not discussing the what and the why. The second common mistake is how people think about wealth transfer. Oftentimes people think it’s, you know, money in my bank account, maybe stocks. No, no, no. Think about it much more holistically. For instance, we found that majority of business owners don’t think about the legacy and the transfer of their business in that conversation. So think about wealth as your properties, your businesses. Of course you, of course your assets, but also just financial behaviors and values you want to instill in the next generation. And third, again, some of this gets really emotional and really complex. Don’t do it alone. Get help.
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