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Chris McDermott, SVP Retirement & Financial Planning at Fidelity Investments

Nov 14, 2012|

Chris McDermott, SVP Retirement & Financial Planning at Fidelity Investments

Transcript - will not be 100% accurate

Hey we're joined by Christmas Dermot Chris is the senior vice president of retirement and financial planning at Fidelity Investments here in Boston. Good morning Chris welcome to the show. Good morning Kyra great -- here. Chris I read some of the highlights on this study that you did recently I think it reflected that about 25%. Adult children expected they're gonna have to help their parents financially is that accurate. Yes that's right we've got carried -- a study. In in this is similar to a study that we did last year on now couple. I'm spouses and how much communication. -- really is on financial matters between. Spouses. We did the same type a study. I'm looking at adult children -- children that are over the age of thirty. I hear that age and parents that are you know typically in his sixties and seventies and how much. Communication exist between now and about financial planning matters in this particular. Kate I'm what are their expectations. About the need to support. And an aging parent or -- parent perspective. Meeting there adult child support and that was a significant difference in expectations between what parents. Expected. Renters -- 97% of parents don't think they're gonna need any help the 25% kids think they are gonna have to help their vote. Does that right now I think I'm most of that different than expectations stand but the lack of having -- detailed conversation. And does that ever happen is June and are just talking about it and you know what here in New England especially. If people are pretty I don't know you pretty they're pretty sheltered about their finances meaning that. I you know did they don't want to talk about that had had made it is this something that actually occurs work adult children talk their mom and dad about their money. You know I think intend to give it taboo to like to ask you know your parents about money or or -- out about the income of the child and other financial -- -- so I think people generally are concerned about it. I'm from an adult child's perspective about what they typically set it in in the work that we did was. I never none of their business. Mean from a parent perspective on the apparent that we're that tend to be a little bit more well off Barry is indicated that that they don't want their children to I expect. I seem to be taking Kara I'm so they're a shelter. I'm you know decide their speed and you know I'm their affluent than the children can kind of make it on their own sort of -- I see that -- I act they have to tell you what I've talked to a lot of our listeners they'll say you know. I've got two million bucks but I don't want my kids to know because I don't want to be lazy -- but the fact of the matter is. Probably not the best strategy is and he'd be here. There are things you can do. From an estate planning standpoint I don't know like I get concerned about the lack of communication whenever I hear that I say to myself boy. It maybe there's something wrong with the relationship between the parents and children that don't wanna talk about the. -- that I think you're right I mean you know that the -- the reality is the united conversation and you know adult children and parents find it find it difficult just to start the conversation. Well we found was that -- the majority nine out of ten parents and adult children say they look there it's really important to. -- frank conversations about -- playing ball will. Quote elder care about retirement related expenses open themselves. As well their parent. Well what we ask that same question about that you have that conversation and you feel like Iraq sufficient -- less than 20% of the children. Felt like they had enough detail that the implication of that is. I bet tend to be a lot of anxiety and -- -- from an adult child perspective about how they're going. To help support an apparent. There's an expectation that they're gonna need to support their parents. And you know by not having that conversation. Practical reality is whether parent. I expect to need that in -- not there -- a lot of unexpected. Situations that occur and did a lot of you know and an individual wages. There's a lot of support either emotionally or financially that is going to be needed in Oppenheim that all on the adult child. At least help coordinate. It not help find a lot of those health care expenses and you know skilled nursing care expenses that come out. Right right well Chris thank you very much for your time we do appreciate it. Thank you Chris McDermott senior vice president of retirement and financial planning at Fidelity Investments joining us today. June here's an elected did okay. A week from today. You're gonna go back to Medford in -- Thanksgiving with your mom -- Utley a walk in with a pumpkin pie in one hand. -- a questionnaire and the others say mom here's a pumpkin pie how much money you have I want to see a copy of your well I want to see a copy of your trust. Should I do it. Before my dad whom she's divorced from gets there and ask in front of him to yes absolutely got to get. You won't you need to know really get -- -- -- going released early at home beat before the cocktail hour and I have four older Brothers those should do it while there are there only an involved you know who wave before they get there. At the conversation -- -- yet there you go to and what you can do is kind of we easily use yourself in you can become the executive works of the state to cut out your four Brothers make sure they don't -- -- dumpster -- yeah. I got up. You know we know how the night family takes care of and we disputes stated it appropriate to bring these things not absolutely sanity I mean seriously if you know how you tried in a good mood you're trying to I mean we just got over an election whatever whatever. -- place to do -- yeah yeah I mean I do it at once a year when I go out today I'd I'd visit my folks in Phoenix Arizona. Every Thanksgiving that's what I do so next Wednesday -- Harry comes again it if they do it. It's as -- asleep at my sisters aren't close financial questions and my gets his calculator out of my dad I. I applied in Wednesday applied -- Wednesday and pick -- up with the airport needs is it nice -- -- your sister's gonna pick up you say with their. Panic about -- year. Probably just to see WTO would you like and eloquent articulate how much money you have. Taiwan and curious curious about money. -- -- -- -- -- -- -- -- -- -- -- -- -- -- I -- those personal acts that personally cannot interest that was the music you don't do I didn't ask if you don't do that has would you like to know which -- every time we go to dinner she makes -- -- What's. This. So you know here toasty. In your dad to. No other private he just gives me money -- and he. -- is that what you'll -- that region that adult child right daddy. Can you can take my job I ask. Me I know how to work them. It's six that's me you know what 686 we won an -- is appropriate and holidays and that's. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --