Many people in the baby boomer generation who still have parents living an active lifestyle have to face the fact that someday their parents or loved ones will get old. A study released by the National Academy on an Aging Society estimates that 7 million aging adults are having difficulty performing everyday activities and will need assistance and long-term care this year. This number is expected to rise to 12 million by 2030.
Long-term care insurance can help ease the financial burden and the risks of aging of an elderly parent. Long-term care insurance, however, does not kick in until someone is unable to perform at least two of six activities common to everyday life. Planning is imperative to help ease the stress of this serious transition that lies ahead.
Emergency Planning if an elderly parent falls ill or has an accident.
Many adults live very separate lives from their aging parents. There could be many miles between them, and people often do not follow their parents’ day-to-day activities. A plan should be in place should a parent have an accident or suddenly fall ill. The plan should have someone local, or close by, check on them on a routine basis. A Personal Emergency Response System in the home is helpful in the event that an emergency happens while the elder is alone.
Make sure estate planning and other essential documents are in place.
It can be uncomfortable for parents and their children alike, but if you have never discussed end of life issues such as stepping in to make health care and financial decisions, funeral plans and property division, now is the time. Wills, health care and financial powers of attorney—at a minimum—need to be in place before they are needed. It is wise to practice what you preach here. It will be easier to express the need and the process if you have established the same documents in your own life.
Evaluate their financial situation.
This subject can be even more uncomfortable between generations to discuss than estate settlement issues, but it can have even greater impact. If possible, plan a family meeting to discuss day-to-day operations of an aging loved one’s household finances. Understand where the assets are, what the income sources are, and what the cash flow situation is for your parents. What assets are available for income generation now and for possible health and nursing care in the future? This can also be an important insight as to how well an elderly loved one is handling the aging process. Quite often monthly bills, checking account reconciliation, and attention to financial details are the first signs of someone needing help.
Research care options before they are needed.
Now is the time to find out what options are available and to discuss what priorities need to be addressed. Is a quality retirement home desired, or do your parents prefer to spend as long as possible at home? Would a nursing facility make the most sense or is in-home health care the longterm desire if it becomes necessary? Make sure those options fit the budget as well. By planning ahead, you may have time to negotiate with a facility or service.
Individuals who assume the role of caregivers often underestimate the time and expense required. What begins as a temporary stopgap until a more permanent solution can be found, quite often turns into a full-time exercise of providing everyday assistance and care. In addition to the emotional impact this can have on the children of aging parents, there can be substantial drain on the caregiver’s own financial resources. The caregiver is affected by limiting their career development, salary, retirement savings, not to mention the out of pocket expenses. These decisions are never easy, but it is considerably easier before care is necessary. The ideal situation is to have everything in place before it is too late. For more information regarding this topic, please contact Henssler Financial at 770-429-9166, or experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
