How to Help Elderly Parents With Finances

Bertha and Jim Ed Wallace

The market fallout has left millions of elderly retirees scrambling to make ends meet--however, there are various ways we can help them out and lighten the burden. After all, they helped us. Here are several ways to get our elderly parents through the crunch.

Instructions

1. Go over their retirement portfolio with them to make sure that they are properly invested. The wild bull market of the late '90s led many advisors to overconcentrate their clients in stocks, and many of these clients did not make necessary adjustments in their holdings when the free ride ended. Visit their financial planner with them to make sure that they're getting the service that they deserve.

2. A part-time job can do much to alleviate the current financial pain many are feeling. If your parents are not physically able to work, there are many work-at-home jobs available (such as writing for eHow). But a job that can get them even $200 a week can make a huge difference in how they live their lives, and whether or not they can remain independent in their declining years.

3. One key factor to remember is health insurance. It may make a lot more sense for you to kick in and help them pay their health insurance premiums than to shoulder a huge medical bill in the future for an uninsured illness or injury.

4. Another idea is to make a low-interest loan to them if you feel that their portfolios will eventually come back. This could make you a little money and help keep them afloat for a while until things turn around.

5. If you provide enough financial support for your parents, don't forget to claim them as dependents on your tax return. Consult your tax advisor for more information on this.

Tips & Warnings

• Many parents are loathe to share their financial situations with their children. Money can be a touchy subject, especially for those in financial need. Be sensitive to your parents' plight rather than be judgmental towards them.