Caring for Aging Parents and Your Finances
One of the biggest retirement planning questions we all face has no definitive answer but still must be dealt with… It’s the aging process.
A secure retirement master plan requires an expectation of not only how long we expect to live, but how are our aging parents going to impact our finances and lifestyle?
People are living longer than ever, and with space age medical advances on the horizon, the longevity question for the entire family must be considered; not only the length of life but also the severity of the aging process.
That once expected inheritance to help guide you through retirement could easily turn into support for your aging parents. A longer than expected life coupled with mental or physical incapacity can decimate your resources, putting your own retirement security in jeopardy.
As our parents age, they will likely become dependent on their adult children. It is critical to recognize this before it happens, because financial and retirement planning becomes integrative and much more complicated. Now you have two, possibly three families to consider, all the while battling our internal instinct to keep everyone safe and cared for.
Certainly, the money is important when doing the planning. However this is just one of the many factors we consider when preparing and working within a retirement master plan for our clients.
Don’t forget to include your time as well as the mental and emotional impact it will have once your parents become depend on you. Caregivers almost always under estimate the time required for caregiving and the impact of their obligations on their work. Typically, people start by providing a small amount of care and then gradually take on more and more responsibility. This drastically impacts their lives by financial losses, career development, retirement income, and their own mental and physical wellbeing just to name a few.
According to a USA Today/ABC News/Gallup Poll, 41% of baby boomers who have a living parent are providing personal care, financial assistance, or both. Of those boomers who are not providing care for parents now, 37% think they will someday and about half of them say they are concerned about their ability to do so.
This question is often ignored by investors and planners alike, but as “The Retirement Guys” we believe this issue must be addressed as early as possible, so you can retire happy and successfully.
Wealthy families have sustained their success by considering children, grandchildren, and even the future unborn when making decisions about spending, saving, investing, philanthropy, and the transfer of wealth. We all need to think that way.
Successful financial planning requires an innovative and dynamic approach. It’s not just about throwing money at the market and hoping it works.
Every retirement master plan must include:
- Proper financial and family planning – Tell your money what to do or it will do the wrong thing or nothing at all.
- Hands on tactical asset management – never buy and hold, aka, buy-and-hope.
- A forward looking investment tax strategy.
- Asset protection – to help safeguard your money not IF, but when the market decides to crash again.
These are things we help our with every day. If this is something that can help you and your family, give me a call for your free no-obligation consultation today.