February 2020
Financial Planning

As we age and live longer, financial, legal, health care and long-term care issues affect families, not just individuals. And talking to our own aging parents or expressing wishes to our children, isn’t always the easiest of conversations to have. Sometimes it can be helpful to have a 3rd party there to facilitate the discussion and we regularly conduct multi-generational meetings to help facilitate open and honest communication about family plans for taking care of aging parents and passing along wealth. 

Whether you tackle this alone or allow us to help you, here are some of the details that are important to a smooth transition: 

Financial Organization - There are many financial resources that your loved one might already be receiving or be eligible for. Social Security, retirement compensation plans, tax-deferred annuities, or individual retirement accounts (IRAs). Some people have “lost” a pension they earned, while others forget about a retirement account set up many years prior. Ask … 

• What type of retirement income do you receive?

• Are pension savings from all jobs over the years being collected?

• Is there a need to apply for Supplemental Security Income benefits?

• Who can access your important financial information in case of emergency?

• Where do you keep these important documents?

• What checking or savings accounts do you have and how are they titled?

• Double-check beneficiaries on all assets

Legal Preparation - Wills and power of attorney may not be topics your relatives want to discuss. But these issues need to be addressed before it’s too late to make sure that their assets are properly taken care of and that their medical treatment preferences are known. Ask … 

• Do you have a will? • Have you executed a durable power of attorney or considered who you might want to handle your finances or health care decisions in the event that you are unable to so?

• Are important legal documents up to date?

• Where are these important documents kept?

• What other legal matters are you concerned about?

• A list of logins and passwords to email, bank accounts, utility accounts, and social media

Health Insurance - Health care is a high-cost necessity, so it is crucial to know what is available to meet your family member’s needs, and what they are eligible to receive. Medicare does not cover all needs, and Supplemental Insurance might be necessary to cover additional health costs. Long-term care insurance is available through the private market to assist individuals to cover the cost of long-term care services, like home health and nursing home care. Ask … 

• As your health status changes, are you prepared to meet your long term health care needs?

• Do you have proper health insurance coverage (not too much or too little)?

• Who are your doctors and how can they be contacted?

• Where do you keep your insurance card, Medicare information, and other important health care documents?

All in all, you will need to prepare yourself to be open, honest and not argumentative. Be ready to listen and hear what is being said to you on both sides of the conversation. Having these conversations little by little and knowing how your loved ones feel about long term care in general, makes decisions easier if the situation ever needs to be made. 

If you have questions, please contact us.

MARKET UPDATE
COLLEGE AND TAX PLANNING
401(K) ALLOCATION
GRAPHIC OF THE MONTH

To download the February 2020 Newsletter: CLICK HERE