| Unless you have spent considerable time with | | | | All the better reason to make a long term |
| your parents and are aware of how they manage | | | | care plan now. |
| their finances and resources, it is likely | | | | |
| you will end up contributing financially to | | | | We often see our parents as the authority, |
| their retirement and healthcare needs. This | | | | however depending on their level of education |
| will significantly affect your retirement | | | | and experience in the world, we may be the |
| planning not to mention your time, family | | | | actual authority. Children are often better |
| relationships and your career. | | | | educated than their parents and more familiar |
| | | | or at least aware of financial planning and |
| While children are generally supportive of | | | | insurance products. I was surprised when I |
| caring for aging parents and many would not | | | | learned after my mother's death that she |
| change anything about the time, effort and | | | | never knew how to balance a checkbook. She |
| financial support provided, with proper | | | | was just good at making sure there was always |
| planning this support does not have to be a | | | | enough money in the account to pay the bills. |
| personal or financial drain. Be prepared to | | | | |
| open the discussion. This is difficult | | | | Here are five steps you can take to avoid |
| subject matter that many people put off or | | | | financially supporting aging parents. If you |
| put aside to focus on other priorities like | | | | are already at the point of crises, many of |
| raising children and funding college. However | | | | the discussion points still apply, however |
| not planning for long term care often results | | | | you may have to make other hard choices about |
| in crises and stress later in life. This type | | | | finances because long term care insurance may |
| of planning is just not for our parents it is | | | | no longer be an option due to health reasons. |
| for us because accidents and health care | | | | |
| issues occur throughout life. | | | | 1. Have a discussion with them about their |
| | | | finances. Many parents feel this to be an |
| Most of us feel psychologically young while | | | | invasion of privacy but they might understand |
| our bodies chronologically age. It is this | | | | if you tell them that you are making your own |
| unexpected chronological aging that catches | | | | long term plan and want to make sure that |
| us off guard. We approach our fifties and | | | | they are equally prepared for retirement. |
| our body parts begin to fail due to overuse, | | | | |
| especially in those who have been very active | | | | 2. Take them with you to a financial planner |
| like distance runners or those who ski. Or | | | | and while you are there share information and |
| we are diagnosed with high blood pressure or | | | | make your own plan to stress the importance |
| diabetes and we may be destined to take | | | | of proper planning with your parents. Set an |
| medications the rest of our lives. | | | | example. |
| | | | |
| Our parents face the same chronological | | | | 3. Prepare budgets. Have a realistic |
| issues on an accelerated level. Hip and knee | | | | discussion of available finances and the |
| replacements are common as are the increased | | | | costs of long term care. Look at expected |
| number of medications older adults often | | | | monthly retirement income versus available |
| take. And how well your parents cared for | | | | monies to pay for unplanned hospitalization |
| themselves when they were younger will have a | | | | or skilled nursing facility co-pays. If |
| direct effect on their ability to age with or | | | | there will not be sufficient funds available |
| without significant health issues. | | | | for unexpected expenses, consider long term |
| | | | care insurance which pays for home care, |
| After age 65 a stay in a nursing home is | | | | assisted living and skilled facility care. |
| common whether it be for short term | | | | |
| rehabilitation or to recover from a medical | | | | 4. Discuss life insurance if this has not |
| emergency. Most older adults have | | | | already been purchased. It could mean the |
| excessively negative memories of nursing | | | | difference between having a paid off mortgage |
| homes because their parents or older family | | | | or not, in addition to paying for funeral |
| members may have been placed in the "home". | | | | arrangements and paying off other bills. |
| The skilled facilities of today have come a | | | | |
| long way in dispelling this old impression, | | | | 5. Follow through with finalizing a plan. If |
| however many people do not want to live the | | | | you wait too long some options may no longer |
| last years of their lives in a nursing home. | | | | be available. |