dsmWealth: March 2, 2023

BY STEVE DINNEN

Talking with parents about their money doesn’t come easily. A recent survey by Wells Fargo found that more children would rather talk with mom and dad about their funeral plans than about their finances. While a funeral is certainly a topic for a serious discussion between parent and child, figuring out how to pay for it is, too.

So mom, dad and the kids need to talk, especially if the seniors have assets or a business they’d like to pass along to the juniors. But talks can break down on either side of the kitchen table. On one side, parents may not want to burden their children with what might be boring details about their finances, said Lorilee Mills, senior vice president and family dynamics consultant at Wells Fargo. Worse, they may feel their children are prying or trying to selfishly line up for a pot of money. On the other side, children may not want to seem like gold diggers or give credence to any suspicions of prying.

To help, Mills said children can start the conversation by mentioning that they’ve been doing some financial planning of their own and were just wondering where mom and dad might fit in. Children can explain that they’d like to carry out whatever wishes their parents have for their legacy.

If you have siblings, talk with them. See if you can agree about how to talk with your parents and what to talk about. You don’t necessarily need a completely crafted plan to start the conversation, said Susan Rathjen, senior vice president of private banking at Bankers Trust Co. And you can use an intermediary to help craft the course of these talks. Both she and Mills have served in that role many times over the years.

Obviously, the more wealth that's involved, the more complicated the conversation might be — about trusts, perhaps, or business succession plans. But Rathjen said talking to your parents about their money is not the exclusive domain of the wealthy, nor should it be a one-time effort. Life changes happen — there are deaths, divorces, shifts in business — that affect family wealth. The sooner you talk about them, the easier you can adjust to future events.

As Rathjen put it, “The conversation never stops.”

Traveling to Europe? Take Two Debit Cards
BY STEVE DINNEN

The official exchange rate of the euro to the U.S. dollar is right around 1.07, or at least it was in January when I hit an ATM in Madrid, Spain, for some spending money. So snagging 200 euros should have cost me $214 (plus a 3-euro processing charge). But this particular ATM required an immediate euro-to-dollar conversion that would give me those 200 euros but ding my account back home $245. Ouch.

Instant conversions are gaining traction in Europe. Most retail transactions, grocers, hotels and restaurants now offer them. I always decline because the owner of the machine handling them often takes an overly generous slice of the transaction when, in fact, it will be processed by a European financial institution at a commercial rate closer to the true ratio.

But no conversion, no euros. The solution? After my Card A was turned down several times, even at different banks, I deployed Card B, which is tied to a different financial institution in Iowa. It gave me 200 euros and only charged a processing fee, and the conversion that was done with my bank amounted to $214.

Lesson learned. Carry two ATM cards from different banks – and enjoy your trip.

The Best Time to Ask for a Flight Upgrade
BY STEFANIE WALDEK FOR TRAVEL + LEISURE

Upgrades to business or first class are extremely coveted, especially on long-haul flights. That's why they're so hard to come by. So can you simply ask for one and get it for free? No, not really — not even if it's your honeymoon. But in some cases, you may be able to ask to pay for an upgrade, which you can do from booking till boarding.

On almost every flight, the passengers who get upgrades are either the ones who pay for them (whether in dollars or miles) in advance or frequent flyers with elite status who receive complimentary upgrades as part of their perks. There are very few exceptions, so don't expect to score a free upgrade by just asking.

READ MORE

How to Track Your Tax Refund
BY ADAM HARDY FOR MONEY

Tax season is in full swing. We’re a few weeks out of the gate, and already tens of millions of Americans have filed their 2022 taxes. Many now eagerly await their refunds from the IRS.

Last year, the IRS was plagued by delays in processing tax returns and issuing refunds. So far, it appears the agency is speeding things along in 2023. IRS data shows a 48% increase in the number of refunds it has issued this tax season compared with the same time last year, despite receiving only 13% more returns.

Another major difference in 2023? Refunds are smaller this tax season due to the expiration of pandemic-era programs like federal stimulus checks and expanded child tax credits, which boosted the average refund above $3,200 last year. By contrast, the current average refund is just under $2,000.

As refunds shrink, inflation remains stubbornly high, and many people are counting on their refunds to help them cope with continued price hikes on everyday items. All of this makes questions like "Where's my refund?" even more urgent.

READ MORE

Watch: See how some investors hit it big, on “How to Invest” by David Rubenstein with Bloomberg.com
Read: Learn why analysts say buying stocks is just not worth the risk today – and what you should do instead, on MarketWatch.
Read: Start planning to fund long-term care with help from the National Institute of Health.

dsmWealth is published on the first and third Thursday of each month and updated on dsmMagazine.com.

What would you like to see here? Contact us at editors@bpcdm.com.

You can sign up here to get dsmWealth delivered to your inbox.