Barefoot Investor issues brutal words of advice to rich boomer parents complaining about their kids

The Barefoot Investor has slammed a boomer couple after they claimed their seven children couldn’t be trusted with their money.

Self-described “grumpy boomers” Donna, 68, and Steve, 69, wrote a letter to Scott Pape last week with advice on appointing someone to manage their finances.

The pair, who are enjoying retirement, have an asset base of about $7.5 million and a total annual income of about $350,000.

‘There is a good chance that we will die without having spent all our wealth. But here’s my problem.

“We have seven children between us and would not trust any of them to care for us in a selfless and humane way if we could no longer care for ourselves.

Too often we have seen children mistreat elderly parents to protect their inheritance. Any suggestions while we still have control,” they asked.

A boomer couple enjoying retirement with $7.5 million in assets claims they can’t trust their seven children to control their money (stock image)

The Barefoot Investor seemed baffled by the couple’s question.

“What are the chances… that you have seven kids and they’re all horrible,” Mr. Pape joked.

He explained that each state and territory has rules for appointing a power of attorney, a person who manages finances, or someone who makes decisions about health and medical matters, known as an enduring guardian or medical treatment decision-maker.

Mr Pape emphasized the importance of choosing someone trustworthy to administer the will.

“I discussed the options with my estate planning attorney, Dr. Brett Davies, who emphasized the importance of choosing someone who is trustworthy,” Mr. Pape wrote.

“It could be a professional, such as an accountant, financial planner or lawyer, but these professionals charge fees and often delegate tasks to junior employees.”

Scott Pape (pictured) said it was important the couple chose someone trustworthy and advised them to use their time and money to rebuild trust with their children.

Scott Pape (pictured) said it was important the couple chose someone trustworthy and advised them to use their time and money to rebuild trust with their children.

However, Mr Pape told Donna and Steve that their children might still be the safest option, and advised the couple to invest in rebuilding trust in their relationships with their children.

“Your safest option may still be your children. But that means that when you lose your mental capacity, you will likely be under the control of your children. And that is the problem,” Mr. Pape wrote.

‘You may have seven stone in the bank, but you’re not rich if you can’t trust them to look after you when you get older.

“If I were in your situation, I would spend as much time and money as possible with my children and grandchildren, trying to rebuild the trust and relationships you have with them. That’s where the real wealth lies.’

According to the 2020 AIFS National Elder Abuse Prevalence Study, it is estimated that approximately 2.1 percent of older Australians have experienced financial elder abuse each year.

The study found that 64 percent of financial elder abuse was committed by a family member.

It comes as the Older Persons Advocacy Network received almost 1,300 calls about elder abuse in the six months to March 2024 – ahead of World Elder Abuse Day on June 15.