Amid the draining heat of mid-summer, do you remember your New Year’s resolutions regarding your personal financial planning? How are you coming with your to-do list?

Time passes. Our children grow up and we get older. Sand keeps passing through the hourglass of our earthly sojourn. The year is over half gone. In about a couple of months children will start back to school and traffic will worsen. The summer break for most will be over. So, it’s high time to get done what you need to get done.

Keeping Up with the Basics

As a financial planner, it’s amazing to see the number of people with no wills or obsolete wills. Such a lapse in planning is especially critical in a marriage with minor children in the mix. An old will is better than no will, but it carries potential problems for minors, especially if both parents die at once, or a single parent passes on.

Often the bulk of a couple’s savings, or that of a single parent, resides in retirement plans. There too, money passing to a minor presents problems. Have you checked both the primary and contingent beneficiary designations on retirement accounts, and personal and group insurance policies?

For those with young children, have you funded a 529 college savings plan? Anyone, a parent or a grandparent, annually may gift to such a college plan. Gifts are made with after-tax dollars but the money grows tax-free and may be spent tax-free to meet qualified college and graduate school expenses.

How are you coming with plans to pay down debt and build savings outside of your retirement plans? Think about creating Your Personal Freedom Fund – a pool of liquid capital equal to at least one-year’s worth of living expenses. Living paycheck to paycheck is motivation-draining stress. Liquid and available capital creates peace of mind and freedom to roll with the punches or pursue opportunities.

If you are a key breadwinner in a family or household, are you adequately insured against the consequences of disability or death? The same question goes for key persons of an enterprise, including business owners. Is there a succession plan? Is it up to date?

August is almost upon us. In slightly over three short months, Christmas and holiday decorations will pop up in your local mall.

And if you haven’t made progress on your New Year’s Resolutions, don’t worry – you still have time.

As professionals, managing our own finances can be a challenge. However, one area that we often overlook, yet is vitally important, is understanding and navigating our aging parents' finances. As they move into retirement and beyond, their financial landscape can become complicated, making it necessary for us to step in. Here are some crucial areas to focus on:

Understand Their Income

Understanding your parents' income sources is the first step in comprehending their financial status. This includes pensions, social security, retirement savings, rental income, and other assets.

Knowing where the money is coming from can help anticipate potential issues, such as a fluctuating income or the need for additional support.

Discuss Their Estate Plan

Having a conversation about your parents' estate plans can be difficult, but it's essential. This includes understanding their will, any trust arrangements, and their wishes regarding the division of assets. It's also important to know who they've named as executors or trustees. Having these conversations early can prevent misunderstandings and legal complications down the line.

Plan for Healthcare Costs

Healthcare costs can skyrocket in old age, and it's essential to understand how these expenses will be covered.

• Are they enrolled in Medicare?
• Do they have a supplemental health insurance plan?
• Do they have long-term care insurance?

If not, it may be worth discussing these options and understanding what healthcare costs could look like in the future.

Be Aware of Potential Financial Abuse

Elderly individuals are unfortunately often targets for financial scams and abuse. It's important to regularly check in on your parents' financial transactions and be vigilant for any signs of suspicious activity. This can include unexplained bank withdrawals, sudden changes in their financial condition, or new, unknown 'friends' who show an unusual interest in their finances.

Your Financial Advisor

A trusted financial advisor can be an invaluable resource for managing your parents' finances. They can help with everything from planning for retirement income to advising on estate planning and managing investment portfolios.

If your parents don't already have a financial advisor, consider helping them find one. Remember, it's critical that this advisor is a fiduciary, meaning they're legally obligated to act in your parents' best interests.

The Circle of Life

Navigating your parents' finances can be a complex task, but it's a critical part of ensuring their comfort and security in their golden years.

By taking the time to understand their financial situation, planning for future costs, and seeking professional advice, you can help guide them through this stage of life with confidence and peace of mind.

As a retiree, one of the significant financial challenges you may encounter is inflation. The rising costs of goods and services can erode the purchasing power of your retirement savings, making it difficult to maintain your desired lifestyle. However, it's not all doom and gloom. There are ways to safeguard your finances and make your retirement more inflation-resistant.

Adjusting Your Spending Habits

The first step to beat inflation is adjusting your spending habits. This strategy doesn't necessarily mean cutting back on your lifestyle but finding smart ways to get more value for your money.

Here are some tips:

• Prioritize Needs Over Wants: Focus on spending money on necessities rather than luxuries. This doesn't mean you can't indulge occasionally, but try to distinguish between what you need and what you want.
• Seek Discounts and Bargains: Keep an eye out for sales, discounts, and bargains, especially for big-ticket items. Make use of senior discounts whenever possible.
• Minimize Waste: Be mindful of waste, particularly in areas such as food, energy, and water. Small savings can add up over time.

Inflation-Protected Securities

Inflation-protected securities, such as Treasury Inflation-Protected Securities (TIPS) in the U.S., can provide a hedge against inflation. These securities increase in value with inflation, helping to protect the purchasing power of your investment. However, like all investments, they carry risks and should be considered as part of a diversified portfolio. It's best to consult with a financial advisor before making any investment decisions.

Diversifying Your Investment Portfolio

A well-diversified investment portfolio can help buffer the impacts of inflation. Consider investing in assets that historically have shown resilience during inflationary periods. This can include equities, real estate, and commodities. Dividend-paying stocks can also be particularly valuable as many companies increase dividends over time, potentially offsetting the impact of inflation.

Again, seeking advice from a financial advisor is always recommended before making any investment decisions.

Increasing Your Income

If possible, consider ways to increase your income. This can be through part-time work, consulting, freelancing, or even turning a hobby into a business. For those who are able, working a few extra years before retiring can provide additional savings and delay drawing down retirement assets, providing more time for those assets to grow.

Plan in Advance

While inflation can be a significant concern for retirees, with proactive planning and smart strategies, its impact can be mitigated. But it's important to remember that everyone's situation is different, and what works for one person may not work for another. Therefore, personalized advice from a financial advisor is crucial in making the best decisions for your unique circumstances.