Financial Planning

Financial Planning

What’s Your Plan? If You’re a Caregiver, You Need One

 

By Jeanne Hoban

Caregiving for an older adult can be overwhelming. There are a lot of decisions to make and services to navigate – and it’s difficult to know where to start.

If you enter caregiving armed with a solid plan, while there may detours along the way, you can navigate the challenges more easily and with less stress.

Plan Ahead

It’s never too early to start developing a plan for future care needs. You don’t want to wait until an emergency situation arises to begin making what could be life-and-death decisions. And you want to make sure that the care plan honors your loved one’s values and preferences. If your loved one was incapacitated in an emergency and you needed to make decisions for them, do you know what they would want? Do you know who they would want to help?

Researchers at Benjamin Rose Institute on Aging identified five core values for care that most people find important: independence, safety, not being a burden, activities with family or friends, and having a say in who helps out. Have discussions with your older adult loved ones to find out what is most important to them. It’s not always easy to have those conversations, but it is important for understanding your loved ones’ preferences and values. It also helps take some of the burden off of you and gives you permission to ask for help later – something caregivers often struggle to do.

Focus on Manageable Tasks

If you are the person providing the most care for your older loved one, you are probably making the majority of decisions related to health, medical care, finances, housing, social engagement, recreation, nutrition… the list goes on.

If you try to focus on all of that at once, it might seem impossible to accomplish anything.

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Financial Seasons: What’s Yours?

By Danny Smith

 

Remember back in the 1960s when folk rock was big? One of my favorite tunes from that era is Pete Seeger’s “Turn! Turn! Turn!”  He was inspired to write it after reading passages from the Old Testament.

According to Pete, he came up with the melody in about 15 minutes, then added the slightly altered biblical words and recorded it. The rest is history. The Byrds covered Seeger’s version, making it the group’s second number one hit. (“Mr. Tambourine Man” was their first.)

The tune lyrically speaks to the fact that to everything there is a season. I believe that life’s lessons prove those words to be true. I further believe that when it comes to planning for a successful retirement, there is a time to take risk and a time to take risk off the table.

What do You Need, What’s Guaranteed?

When people engage me as their advisor, after helping them estimate how much income they will need to retire, one of the first questions I ask is, “How much of that income do you want guaranteed?” The answer is usually, “Well, all of it, or as much as we possibly can.”  

One way to do this is to allocate a portion of your retirement assets to a certain type of annuity contract called a Single Premium Immediate Annuity, or SPIA for short. SPIAs are issued by insurance companies and are designed for people with a guaranteed income objective for a certain number of years or for the remainder of their life, or joint-lives in the case of couples.

Some SPIAs have an inflation option that increases the annual payout every year. With this option, payments in the early years of the SPIA will be less than they would have been without the inflation option, but go up every year over the selected payout period.

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What a Good Long-Term Care Insurance Policy Should Include

We get it; long-term care insurance isn't easy to understand and not always appreciated. But financial experts say we need to consider purchasing a policy when we reach our 50s. Here's a great summary of what to consider if you're in the market for this type of insurance. ...
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Am I Legally Required to Support My Adult Child with Disabilities? Maybe.

What's your legal obligation to support an adult child with disabilities? When does your responsibility end and should it? A consultation with an attorney that deals with special needs issues is a good place to start to get clarification on this sensitive issue. ...
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15 Reasons You’ll Go Broke in Retirement. Hint: Don’t Live Too Long or Spent Too Much

Emergencies don’t end when retirement begins. A single home or auto repair – say, you need to replace your roof or get a new transmission – can strike a devastating blow to the budgets of fixed-income retirees who don’t have money set aside for just such calamities. ...
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10 Things That You’ll Spend More on in Retirement

So, you think retired living is cheaper than how you live now? In some instances, it is. Financial planners have traditionally estimated that retirees need 80% or more of pre-retirement income to maintain their standard of living, but individual situations vary greatly. But there are a few things you may spend more on. Here's a rundown on what those are and how to prepare. ...
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12 Facts About Social Security You May Not Have Know (but will now!)

Several members of Congress have proposed legislation to address the program’s long-term funding issues. But given the deep political divides on Capitol Hill, it’s unlikely that Congress will make any effort to reform Social Security until there’s the possibility of bipartisan support. ...
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A Retirement Checklist: 8 Steps to Take Now

We all know people who dive head-first into retirement with seemingly little thought to whether or not it's the best time for them to stop working. Simply put, they haven't done their homework. Don't be like them. Consider these suggestions before taking the big step into retirement. ...
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