Plan along with family

Whether there’s a chance you’ll outlive your money or not, it’s important to involve your family in your financial planning for a number of reasons.

If you haven’t planned adequately for retirement, or find that unexpected expenses have eaten away at your retirement capital, it’s crucial that you get your family to step in and assist, says Henk Appelo at Liberty Investments. “Similarly, your family needs to be aware of what you have in order to continue to manage your investments going forward in the event that you die or that you become unable to look after it yourself.”

If you outlive your money, there may be things your family can do to help prolong the time that your money lasts. They may help you look for employment or income, or help with some of your expenses.

“On the flip side, if you are leaving money and business interests, you may want your children to start to get involved in these interests, and there are things they need to know for tax planning and estate planning purposes.”

You may also be in a position where you can no longer look after your financial interests due to old age or illness, and you need to ensure family members take responsibility and continue to look after your best interests, and that your money is properly managed, says Appelo.

“This is something a financial advisor will assist with.”

Families and retirees need to discuss: What your plans are in terms of staying in your own home, moving into a retirement village, or moving in with family. Where your money, investments, insurance documents, will and other important financial assets or documents are held. Whether you have a financial planner and executor of your will and where they can be reached. What you have put in place in terms of retirement funding, health and other insurance and whether it’s likely to be enough.

What is your income expectation on retirement and is it sufficient. If not, are family members able to help you find employment or assist in a different way. Are there any costs you can reduce now to make your money stretch further?

Do you have a living will or instructions in case of severe illness, and what sort of burial plans?

Involve your family, they need to know how to plan your finances if you die, or support you if you live longer.

Henk Appelo Liberty Investments