蜜穴视频

The elder care equation

Planning your own retirement while caring for elders.

Article published: August 21, 2023

In this article:

  • Don鈥檛 delay it 鈥 talk to your parents now about their finances
  • Get the family involved and decide responsibilities
  • Gather paperwork and prepare documents
  • Keep an eye on their everyday money matters


As financial planners, we love helping our clients reach their goals and enjoy the retirement they dreamed of. But 鈥 just as important 鈥 we want to be sure your financial plan helps you navigate life鈥檚 unexpected twists and turns.

One of the biggest issues facing many clients is caring for aging or ill parents, while planning ahead for their own care needs in the future. Elder care, whether for yourself or a loved one, brings together so many financial planning touchpoints: insurance, retirement income, Social Security/Medicare, estate planning, etc. And like many topics we cover, having honest and respectful conversations with your loved ones is a key component too.

We鈥檒l break down how you can plan ahead for elder care and provide some practical tips for helping elders with their finances.

An important conversation

A 2020 survey conducted by Wells Fargo found that most Americans want to be responsible for their parents鈥 finances, but that most hadn鈥檛 discussed it with them 鈥 which is understandable.

Talking to your parents or other aging loved ones about their finances can be a sensitive undertaking, especially if it means they鈥檇 be giving up some control or independence.

But it鈥檚 a crucial step to take as a planning stage. There鈥檚 no guarantee your parents will need you to take over their finances, but it will make it easier for everyone down the road to have a game plan in place. Consider these questions:

  • Do you know how much money and assets your parents have, and where they鈥檙e kept?
  • Do you know whether they have updated their estate plan or even have one?
  • If they have estate planning documents, does anyone know where they are located or does anyone have a copy?
  • Do they have听long-term care insurance听to cover what most health insurance policies do not: the costs of nursing homes, assisted living and support with activities of daily living?

It鈥檚 a family affair

It鈥檚 also important to include other family members, like your siblings, in-laws and children, to reach a consensus so there are no misunderstandings about who鈥檚 responsible for what, and what your parents鈥 wishes are for housing and critical care decisions. Naming someone who will take on responsibility for making decisions if someone is incapacitated 鈥 well before that ever happens 鈥 can bring enormous peace of mind if the day comes that a parent is unable to care for themselves or make decisions.听

Levels of authorization

  1. Trusted contact 鈥 notification only, no authority to act
  2. Authorization to share 鈥 ability to share information, but not act
  3. Third-party notification 鈥 used by insurance companies
  4. Authorized signatory 鈥 used by banks and credit unions
  5. Durable Power of Attorney agent 鈥 authority to act
  6. Medical Directive agent 鈥 authority to act
  7. Successor trustee 鈥 authority to act

And if that day doesn鈥檛 come for a long time, or indeed never comes at all, you still want to have a plan in place for the more mundane or everyday responsibilities: Who鈥檚 going to attend medical appointments with the aging parent and keep an eye on prescriptions and insurance paperwork? Who鈥檚 going to help with food, clothing and housekeeping if needed?

Another thing to keep in mind as you discuss this topic with your family: We are on the verge of the largest wealth transfer in history from baby boomers to their Generation X and millennial children. Yet most people haven鈥檛 talked to their parents about their financial situations. So is there someone else you should bring into this intergenerational conversation? That鈥檚 right 鈥 a financial planner who can work with you, your parents and the whole family to help make sure you鈥檙e asking the right questions and to help you build out a strategy designed for preserving and protecting the family legacy for generations.

Get your paperwork in order

As part of your parents鈥 estate plan, and as part of your strategy to provide assistance for them if the need arises, organize all the documentation you鈥檒l need. Completing a new (or updating an existing) durable power of attorney, health care power of attorney and living will/terminal care directive can provide a continuity plan in the event someone is unable to manage their financial affairs or health care decisions. Preparing these documents now provides you and your family with an opportunity to plan for a smooth transition to whoever will be assuming control. One thing all these documents will ask you for is to name the 鈥渢rusted agent鈥 who you and your family have decided on.听

As part of your parents鈥 estate plan, and as part of your strategy to provide assistance for them if the need arises, organize all the documentation you鈥檒l need. Completing a new (or updating an existing) durable power of attorney, health care power of attorney and living will/terminal care directive can provide a continuity plan in the event someone is unable to manage their financial affairs or health care decisions. Preparing these documents now provides you and your family with an opportunity to plan for a smooth transition to whoever will be assuming control. One thing all these documents will ask you for is to name the 鈥渢rusted agent鈥 who you and your family have decided on.听

Help with everyday finances

Even if a parent is not incapacitated, it might be a good idea to have the trusted agent 鈥 let鈥檚 say it鈥檚 you, for this example 鈥 start working with them early on. For example, helping with tracking expenses, paying bills, managing bank accounts and keeping insurance up to date is a great way to get ahead of any potential issues. Where possible, request to get duplicate bank statements and credit card bills, and ask insurance companies for copies of statements and premium notices. Often, if you have a durable power of attorney, you can get copies of these documents. 听

By starting slow, you can begin to create a new dynamic with your parents where you are gradually transitioning to a caregiver role while keeping them involved and active.听

Neither Financial Engines Advisors L.L.C. nor any of its advisors sell insurance products. 蜜穴视频 affiliates may receive insurance-related compensation for the referral of insurance opportunities to third parties if individuals elect to purchase insurance through those third parties. You are encouraged to review this information with your insurance agent or broker to determine the best options for your particular circumstances.



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