Five Ways to Avoid Financially Supporting Aging Parents

Unless you have spent considerable time withtheir lives in a nursing home. All the better reason
your parents and are aware of how they manageto make a long term care plan now.
their finances and resources, it is likely you will endWe often see our parents as the authority,
up contributing financially to their retirement andhowever depending on their level of education and
healthcare needs. This will significantly affect yourexperience in the world, we may be the actual
retirement planning not to mention your time,authority. Children are often better educated than
family relationships and your career.their parents and more familiar or at least aware
While children are generally supportive of caringof financial planning and insurance products. I was
for aging parents and many would not changesurprised when I learned after my mother's death
anything about the time, effort and financialthat she never knew how to balance a
support provided, with proper planning this supportcheckbook. She was just good at making sure
does not have to be a personal or financial drain.there was always enough money in the account
Be prepared to open the discussion. This is difficultto pay the bills.
subject matter that many people put off or putHere are five steps you can take to avoid
aside to focus on other priorities like raisingfinancially supporting aging parents. If you are
children and funding college. However not planningalready at the point of crises, many of the
for long term care often results in crises anddiscussion points still apply, however you may
stress later in life. This type of planning is just nothave to make other hard choices about finances
for our parents it is for us because accidents andbecause long term care insurance may no longer
health care issues occur throughout life.be an option due to health reasons.
Most of us feel psychologically young while our1. Have a discussion with them about their
bodies chronologically age. It is this unexpectedfinances. Many parents feel this to be an invasion
chronological aging that catches us off guard. Weof privacy but they might understand if you tell
approach our fifties and our body parts begin tothem that you are making your own long term
fail due to overuse, especially in those who haveplan and want to make sure that they are equally
been very active like distance runners or thoseprepared for retirement.
who ski. Or we are diagnosed with high blood2. Take them with you to a financial planner and
pressure or diabetes and we may be destined towhile you are there share information and make
take medications the rest of our lives.your own plan to stress the importance of proper
Our parents face the same chronological issues onplanning with your parents. Set an example.
an accelerated level. Hip and knee replacements3. Prepare budgets. Have a realistic discussion of
are common as are the increased number ofavailable finances and the costs of long term care.
medications older adults often take. And how wellLook at expected monthly retirement income
your parents cared for themselves when theyversus available monies to pay for unplanned
were younger will have a direct effect on theirhospitalization or skilled nursing facility co-pays. If
ability to age with or without significant healththere will not be sufficient funds available for
issues.unexpected expenses, consider long term care
After age 65 a stay in a nursing home is commoninsurance which pays for home care, assisted
whether it be for short term rehabilitation or toliving and skilled facility care.
recover from a medical emergency. Most older4. Discuss life insurance if this has not already
adults have excessively negative memories ofbeen purchased. It could mean the difference
nursing homes because their parents or olderbetween having a paid off mortgage or not, in
family members may have been placed in theaddition to paying for funeral arrangements and
"home". The skilled facilities of today have come apaying off other bills.
long way in dispelling this old impression, however5. Follow through with finalizing a plan. If you wait
many people do not want to live the last years oftoo long some options may no longer be available.