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Letting us right now to discuss some issues that you might not consider regarding mom and her cash Nancy Jordan senior vice president.
An individual annuity operations at Lincoln financial group thank you for joining us.
Thank you for having me Adam.
You know I have actually had this discussion with dear old mom.
About finances and the future and I'm curious.
No one trains -- how to do that it's not an easy discussion to have what I what pointers as suggestions -- you have a -- let's jump into how an annuity can now.
Create well I'm glad you know first of all cheers to you that you've had a conversation with your mom because we we did a survey and found that.
Of women actually like dread talking about -- looking at their finances so.
You've done the most important first step by breaking the ice.
It's you know it's just really important that we think of moms financial wellness in the same way that we would think about her physical wellness or her emotional wellness and that.
You know as a family.
We help her get herself financially prepared.
And and yeah you know it's not his mom by the -- -- -- had to do this if your parents are divorced -- dad -- that's a difficult when I don't think anybody's parents.
You know you where adults nobody wants to talk with their children about their finances and yet.
Our senior adults -- parents have to have that discussion with their adult children.
The options open.
Two adults annuities I always find annuities confusing can you explain to me why they're a good option.
Say for mom or dad going forward is a guaranteed income.
Sure you can kind of think of as an annuity as insurance on your retirement.
Account so you would insure your car your house do you -- ensure some of your retirement.
-- you should never put all of your money and annuity you really where they play in the financial portfolio is.
For those necessities.
You want to make sure that you've got your housing covered in food -- and so.
You know it's important that that you work with your parents or yourself to look at what you think your your minimum amount of money that you really need to have.
And that's a great opportunity to ensure that within an -- think -- -- -- like do it yourself pension plan.
Well let me ask you this let's say this is a hypothetical but let's say you have 350 to 400000.
Dollars in a parent's.
-- Would you wanna tie that up in an annuity that would then kick off the housing cost of food cause that that absolute necessity costs.
-- that covered for the rest of their lives is that -- an annuity would work.
You know an annuity is is certainly.
They -- two to cover those kinds of expenses I think.
Any need a good financial advisor that you would work with it can help you look at the overall portfolio and there's a term we use called suitable of -- -- suitable amount ten.
I think most advisory firms would say that you know you know more than probably 25% of that would.
Would be appropriate to lock up into an annuity -- What's here you know what's your liquid needs.
Well how did have -- that that makes a lot of sense but I'm curious how do you have that discussion within elderly parent.
In in my situation forgive me thing about me part of it was out of necessity.
But how do you bring that discussion up when you're not necessarily under the gun.
-- I think a great way to start well first of all you have to know your parent and how what their level of comfort or discomfort is but.
Moms and dads have helped us with advice throughout our whole life so what a great opportunity to.
Talk about some of your own financial challenges and get their thoughts seek their advice that gets the conversation going.
You know another thing if you want to use the survey that we've just done this mood of America survey that showed how many women you know dread talking about the finances.
You know while I -- the -- -- -- what do you think of that does that apply to you and and if so why and how can we be more comfortable as a family.
But I think there are some parents to worry that you know frankly their kids just want their money so.
Another way is to assure your parents that that year financially sound.
You know I've worked as a financial advisor and I've worked with my attorney to update things.
Have you updated your situation lately.
As you find my this is a trend that that we've been reporting about for years but that and a lot of families.
Although the primary breadwinner on this is actually changing in our society.
And -- higher income or might be the husband women tend to make a lot of the financial decisions so the women who in these situations loans were making the retirement plans.
The financial plans for retirement.
I think often they are.
Yet I I think often they are but.
One the things -- survey showed and if you wanted to get into more detail on the survey if you go to our web site which is LF GTV dot com forward slash women take charge.
Is that women are very comfortable with -- House are -- the short term.
The budgeting making sure the bills are paid but when it comes to the long term retirement planning they tend to stop a little short of that.
Are you finding that the people who are coming to you have prepared sufficiently for their retirements are you finding that people have a bit of a hole that needs to be filled whether that's from -- -- or whether they're gonna keep working.
I think it's and it's a Max and certainly.
People have needed to to take a fresh look at things obviously the market is changing record highs but interest rates are at record lows so.
If you plan had been to put your retirement and CDs.
That might have been great ten years ago when they were earning five or 6% but now it like point 25 that's not gonna work so well.
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