My obligation is to my clients. It is incumbent upon me to understand what my clients want and help them achieve those goals. Safe withdrawal rates are relevant, but my work has also included discussions of widowhood, dementia and a heart-to-heart talk about their kids.
Most parents have a pretty good handle on the strengths and flaws of their children. Some clients do not want any of their kids to know anything about their finances. Others want them actively involved. Some of the alpha males know their spouse needs some protection from becoming the bank of Mom.
We may hold a family meeting. The client may want to communicate the plan to the kids personally. Sometimes, clients find the conversation too uncomfortable so they ask me to explain to the kids what they can and can’t expect financially from their parents.
To serve our clients well, we have to have these conversations, and yes, they can be awkward. When our kids are born, they are going to college on a full scholarship and win a Nobel prize. Some clients know their kids could be an issue but are hesitant to talk about it. Those kids are not model citizens.
Money can’t fix a lot of problems. Through good planning, though, some problems can be reduced or eliminated. Having a client’s retirement vision destroyed by kids who won’t get off the payroll is one problem that is largely preventable if you take the time to have the right conversations, even if those conversations are challenging.
Dan Moisand, CFP, has been featured as one of America’s top independent financial advisors by Financial Planning, Financial Advisor, Investment Advisor, Investment News, Journal of Financial Planning, Accounting Today, Research, Wealth Manager and Worth magazines. He practices in Melbourne, Fla. You can reach him at www.moisandfitzgerald.com.