Money Conversations You Should Be Having
August 02, 2022
Although you may be reluctant to talk about money with loved ones, constructive financial conversations can have a beneficial impact on their futures, and yours, too.
We share ideas about conversations you may want to have with:
Your Children and Grandchildren:
Children from affluent families take vacations, attend summer camp, eat out in fancy restaurants, and participate in travel sports programs, often without an understanding of where the money comes from to pay for it. You can help provide and share with your children and grandchildren your perspective on wealth and wealth creation through money lessons for all ages including how to earn a living, identify needs versus wants, invest for the future, and give philanthropically. A family’s legacy transcends dollars and cents where you play an important role in preparing the next generation for the responsibilities that come along with financial success.
Young children learn best through play. And teens and pre-teens often open up more during conversations in the car, when they don’t have to look you in the eye.
Your Parents:Do you know the resources your parents have set aside to support themselves as they age? For example, do they have company retirement plan assets, IRAs, or a pension, or have they purchased long-term care insurance? Although it may seem awkward or intrusive, you need to prepare for the role you may play in their caregiving in the future. A basic understanding of the details of their estate plan, including their healthcare wishes, is a good place to start.
Your Spouse:Money troubles and lack of communication are two of the most commonly cited reasons for divorce.* Connecting regularly with your spouse to discuss your life goals can help you get on the same page, spiritually and financially, and work cooperatively.
Dedicate time for conversations about your financial future. Agree in advance on a topic and venue and keep conversations goals-oriented and positive.
In addition, your Washington Trust Wealth Advisor is a resource you can count on for guidance on money conversations, as well as facilitating the process. Contact us to learn more!
*10 Most Common Reasons for Divorce, marriage.com, September 30, 2021
Connect with a wealth advisor
No matter where you are in life, we can help. Get started with one of our experts today. Contact us at 800-582-1076 or submit an online form.
This document is intended as a broad overview of some of the services provided to certain types of Washington Trust Wealth Management clients. This material is presented solely for informational purposes, and nothing herein constitutes investment, legal, accounting, actuarial or tax advice. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Please consult with a financial counselor, an attorney or tax professional regarding your specific financial, legal or tax situation. No recommendation or advice is being given in this presentation as to whether any investment or fund is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors, or markets identified and described were, or will be, profitable.
Any views or opinions expressed are those of Washington Trust Wealth Management and are subject to change based on product changes, market, and other conditions. All information is current as of the date of this material and is subject to change without notice. This document, and the information contained herein, is not, and does not constitute, a public or retail offer to buy, sell, or hold a security or a public or retail solicitation of an offer to buy, sell, or hold, any fund, units or shares of any fund, security or other instrument, or to participate in any investment strategy, or an offer to render any wealth management services. Past Performance is No Guarantee of Future Results.
It is important to remember that investing entails risk. Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, political, regulatory, geopolitical, and other conditions. Investments in foreign markets through issuers or currencies can involve greater risk and volatility than U.S. investments because of adverse market, economic, political, regulatory, geopolitical, or other conditions. Emerging markets can have less market structure, depth, and regulatory oversight and greater political, social, and economic instability than developed markets. Fixed Income investments, including floating rate bonds, involve risks such as interest rate risk, credit risk and market risk, including the possible loss of principal. Interest rate risk is the risk that interest rates will rise, causing bond prices to fall. The value of a portfolio will fluctuate based on market conditions and the value of the underlying securities. Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment loss. Investors should contact a tax advisor regarding the suitability of tax-exempt investments in their portfolio.