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FINANCE

CARING FOR YOUR
AGING

by Jill Ciccarelli Rapps, CFP® PARENTS

Financial Advisor

I n 2016, more than 10 million Americans – about 3% of kept in a secure location that can be accessed by all parties

the U.S. population – served as the primary caregiver concerned.
for their elderly parent. The continuum of caregiver
responsibilities vary based on needs, but often involves You will need to collect:
the daily basic care needs such as feeding, administering • Income information including pension, 401(k) and
medicine, and helping with personal hygiene; as well as retirement plans, and SSI benefits
financial and emotional support. • Savings bonds, stock certificates, and annuity contracts
As a caregiver, your obligations to your parent or loved • Partnership, corporate, or company operating agreements
one can be draining – both financially and mentally – so it • Tax returns
is crucial to have a plan in place. By preparing for your role • List of all bank accounts
as a caregiver, you should ensure that all of their needs are • Documentation of any loans, debts, or credit cards or
met while still taking care of your own. accounts
Here are some key tips to keep in mind to make the • Copies of their health and life insurance policies
most of your time as a caregiver: • Medicaid/Medicare information
• Social security cards and birth certificates
HAVE THE CONVERSATION EARLY • Property deeds and vehicle titles
If possible, talk to your parents before their health • Contact information for their medical doctors and
degrades about putting a plan in place. By preemptively insurance agents
addressing these concerns in advance of need, you can • Power of attorney, healthcare power of attorney,
prevent many of the hiccups that you are bound to living will, and/or authorization to release healthcare
encounter. information
First, take a look at both of your parent’s financial • Medical histories and prescription information
resources and your personal financial situation. This crucial
first step can help you to determine what options are DEVELOP A BUDGET
feasible for your family to consider, and can help you to Once you understand the full extent of your combined
make decisions about filling any gaps that may lead to resources and have gathered your key documents paperwork,
financial hardship. you should develop a budget. Though it may be difficult to
You should also draft a living will, and establish power determine a budget before you know the full extent of your
of attorney and a healthcare proxy. The best approach is to parent’s health care costs, a financial planner can provide an
partner with your financial advisor and attorney to develop informed estimation about their living expenses.
a plan that meets your needs. When creating your budget, consider all costs – not
just medical and hospice care, but also factor in their day-
GATHER ALL THE NECESSARY PAPERWORK to-day living expenditures (housing, food, utilities, etc.).
Determining your budget can also help you decide if your
You will also want to compile all of the necessary
parents should move in with you, if you can leave your job
paperwork for your loved one’s next stage in life. Create a
to provide full time care, or if you can hire outside help.
file of their important documents and ensure that this file is

76 Life in Naples | May • June • July 2017