From the time we embark on our careers, many of us have already begun to plan for our own retirement needs, saving money to put toward household expenses or medical needs when the time comes.
Despite the best laid plans, however, many of us will have to deal with the expenses of senior care sooner than we would like. Many end up being a caregiver in some capacity for one or both of their senior parents, assuming responsibility of a situation for which they had little opportunity to prepare.
No matter how well things seem to be going, now is the ideal time to begin talking with Mom or Dad about financial planning for seniors, their healthcare needs, and their wishes for the future. Planning before a potential emergency situation is the best way to make sure things go as smoothly as possible when the time comes, and to ensure that all their wishes and needs are met.
What You Need to Know About Financial Planning for Seniors
- Does your senior loved one(s) have any money in savings? If so, how much?
- What are their current and future sources of income?
- Do they have any investments? Do they have any insurance policies and, if so, do they include a long-term care plan?
- Are they using the services of a financial advisor or an accountant? Do they have an attorney?
- Are there any medical conditions your senior loved one is contending with that could affect their care needs in the future?
- Is it their preference to remain in their home as their health needs increase or do they see themselves receiving care in a senior care community? Would there potentially be any health changes or developments that could change their minds?
Once you’ve entered into your elderly parent’s financial planning process, it’s important to keep the lines of communication open and to stay on top of things. Financial documents should be kept organized and always remain accessible. Important documents including bank statements, wills, powers of attorney, investment statements, and insurance policies should be reviewed and updated periodically. Even If your Mom or Dad is still capable of taking care of their finances now, it’s important that you have insight into what’s going on so you don’t miss a beat if things get handed over to you. Once you’ve established what financial resources you have to work with, have a conversation with your loved one to discuss what their wishes and anticipated needs are for the future.
What You Can Do Now
- If your senior loved one hasn’t already, seek professional advice for them about planning for their future, both financial and legal.
- Investigate what benefits are available for their specific situations. Often, public benefits are available to help pay for senior care. For example, military veterans and their spouses may qualify for certain government programs including Medicare and Social Security. It’s important to know what is available.
- Understand their finances, even if your senior loved ones can still handle things themselves. Instead of waiting until problems arise, a caregiver or next of kin should be aware of their spending habits and bank accounts, which will prevent any financial issues from getting out of hand.
- Protect your elderly parent from scams. Unfortunately, money stealing schemes are becoming all too common, both over the telephone or over the internet through fraudulent emails or hacking. Caregivers and family should be aware of the real possibility that their elderly parents could have their life savings stolen from them in a single moment. Being protected online and aware of common scams is crucial in preventing them from becoming another victim.
- Discuss with your senior loved one what adjustments need to be made now to prepare for the future. Should they downsize or cut back to boost their savings? Are their investments appropriate for their age and their needs?
Don’t Lose Yourself
Admittedly, accepting the responsibility of managing your parent’s finances is going to take up valuable time and add to your stress level, and it’s important to remember that you still need to take time to care for yourself. After all, if you’re not well, you won’t be able to provide your senior loved one with the help they need.
Taking part in financial planning for seniors doesn’t have to be overwhelming. Don’t let it become a second full time job. At Bethesda, we know you want the best for your senior loved one, so we’ve assembled a team of experts to make sure they have all the resources and services available to them while ensuring that all their care needs are covered. Bethesda can help answer your questions and learn more about what to expect. Contact us today!
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