Many caregivers use their own money to provide for aging loved ones.
Chances are you would do anything for family.
Your parents made sacrifices for you as you grew up.
As your parents age, they will likely need help from you.
In fact, many children serve as caregivers for their senior parents.
According to a recent Think Advisor article titled “Americans Are Spending More but Planning Less for Caregiving: Northwestern Mutual,” this can cost more than time and energy.
According to the 2018 Northwestern Mutual C.A.R.E. Study, 22 percent of survey responders expected to become caregivers soon, while 30 percent were either current or past caregivers.
Nearly half had planned to provide care for their aging parents, but many were unprepared for the financial toll it would take.
Nearly 70 percent of caregivers use their own finances to support their loved ones.
In fact, 21 to 100 percent of their monthly budget is allocated to caregiving.
For example, the average spending for medical supplies per month is $273 and the average cost of food is $159.
Can you start preparing now?
Unfortunately, about 48 percent of those who expect to provide care in the future have not made any plans regarding how they will handle the financial aspects of the role.
How can you help your children if you plan to make them your caregivers?
About one quarter of surveyed Americans have begun planning for their own long-term care needs.
These individuals have taken steps like purchasing a long-term care product, increasing their savings, and including provisions in their financial plan.
Lastly, if you are expecting your loved one to provide care, share your wishes with them.
I do "eat my own cooking," too.
Gretchen and I have had long-term care insurance since 2009.
It is great peace of mind for ourselves, let alone our three adult daughters.
When it comes to how you "honor" your father and mothers, I always remind my clients to be very, very careful.
Your own children are watching.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Think Advisor (March 15, 2018) “Americans Are Spending More but Planning Less for Caregiving: Northwestern Mutual”