Helping Aging Parents

Hello, my name is Scott Johnson, and welcome back to the Financial Success Academy. Today we're talking about something that's becoming more and more common among our clients—helping aging parents manage their finances. For many families, this responsibility starts slowly with things like helping with a bill or reviewing a bank statement, and then grows over time into a much larger role. It's not always easy, and every situation can have a unique set of complexities, but a little preparation now can save a lot of stress down the road.

So what does being prepared actually look like? First, start by making sure your parents’ estate planning documents are in place. This includes things like wills, powers of attorney, and health care directives. These documents need to be current, accessible, and coordinated with things like account titling and beneficiary designations. A mismatch of any of these items can lead to costly mistakes down the road. We recently met with a prospective client who owned millions in real estate. Well-intentioned but misguided, they had added their adult children to property titles to “make things easier.” This seemingly simple decision could have resulted in significant tax consequences, potentially eliminating the step-up in cost basis beneficiaries typically receive upon inheritance. These are the kinds of issues and opportunities we're evaluating daily for our clients, and proactive planning can save thousands in taxes in the long run.

Second, get organized. Create a secure, centralized document that outlines where accounts are held, how to access them, and who to contact. Include logins, digital passwords, and instructions for accessing things like phones, laptops, messages, or photo backups. Many platforms like Apple and Google now offer digital legacy tools to make this easier. Third, if your parents have accounts scattered across multiple banks and brokerage firms, consider consolidating them. We've helped many families bring their parents’ investments under one roof, which makes it easier to monitor and manage these accounts now and makes the future transfer process much simpler.

Next, evaluate if your parents’ investment portfolios are appropriate for their individual goals and cash flow needs. This means making sure they aren’t taking on more risk than necessary, while also avoiding being too conservative if they still have long-term needs. When we evaluate portfolios for our clients, we look at their cash flow, tax situation, time horizon, and estate planning goals to determine what investment allocation will make the most of what they have saved.

And finally, keep a close eye out for fraud. Seniors lose billions a year to scams, and small, regular reviews of statements and setting up account alerts can go a long way in preventing financial exploitation. At Point Financial, we understand that helping your parents is about more than money—it’s about care, trust, and honoring the role reversal that often comes with aging. Here’s the best news: you don’t have to do it alone. We’re here to help you get organized, avoid missteps, and feel confident as you step into this new role.

Thanks for joining us, and as always, stay safe out there.