When you decide to retire it is a decision that affects your whole family in many ways. The choice can affect your family emotional and financially. Since retirement is such an important part in your life it is very important to share this time with your family. Here are some reasons why it is crucial to discuss your retirement plans with your family.
Everyone is on the same page
The first and most important thing is to make sure everyone is on the same page with your plans. Discuss your goals with your retirement with your kids and even other family members. It will give everyone a clear understanding of what you want to accomplish.
You take care of them, they take care of you
You have done your best to provide for your children and give them the best of everything. Your children should realize that you have done everything you can for them, and they will hopefully take care of you because they love you. Sharing your plan of retirement can help your children know what kind of role they will play in your life.
Teach your children your mistakes and accomplishments
No matter if you are a financial guru or made some mistakes with your retirement this is a good time to point out what worked for you. Take the time to discuss your short comings with your planning. Discuss your strategy that gave you the opportunity to retire. There are many people today who are getting the chance to retire. If you are one of the lucky ones share with your kids the techniques that worked for you.
Let your kids know what happens after you pass
You can also take this time to discuss what will happen with your nest egg after you pass away. Discussing what your plans are with your home, summer home, stocks and anything else will help your kids and family know what will become of everything once you are gone. It can put everyone on the same page and have a better understanding of what to expect. It can really help eliminate any feuds from happening later on down the road over your estate.
A stronger bond and set expectations
Once you share your retirement plans and what is to happen with everything when you pass away can give you and your kids a feeling of a stronger bond together. Some people can be very secretive with their finances; it really shouldn’t be when it comes to kids and family. It is so important to clear the air and let your kids know what they can expect from you. You certainly do not want your kids resenting you for things you couldn’t do for them that they may have expect you to do for them.
Having a plan is essential to making the most out of your retirement. Sharing it with your kids and family can help communicate exactly what you want to happen and avoid any miscommunication later on down the road.
One option you have for retirement that is becoming more and more popular is a reverse mortgage. A reverse mortgage is for people who are 62 years old or older. A reverse mortgage eliminates your current mortgage* and if you have any additional equity you can use that tax-free** cash for anything you want. There is currently no income or credit requirements for a reverse mortgage and you are never required to make a payment. You can have the peace of mind knowing you can live in your home for the rest of your life.
Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest retail reverse mortgage lender in America. Check out our reverse mortgage calculator to see how much tax-free cash you can qualify for. Or give us a call at (800)401-8114 to talk to one of our licensed professionals. They can discuss your financial situation with you and determine if a reverse mortgage makes sense for you.
*Homeowner is still responsible for taxes, insurance and property maintenance.
**Please consult with your financial advisor.