When is the Right Time for a Family Meeting?

Contributed by: Sandra Adams, CFP®

In the context of our financial planning work with clients, family meetings can be scheduled for many different reasons. These meetings are often scheduled because something has changed, and the family needs to discuss a family transition or crisis. However, family meetings, like most planning, are most effective when done proactively — before a stressful life transition or crisis.

What does a proactive family meeting look like?

When we talk to clients about scheduling a family meeting with their children, what is the purpose? What is on the agenda?

Purpose(s):

One of the purposes of the meeting is to ensure that our clients’ children get to know us. They are most often the future decision-makers for their parents if anything happens with their health or decision-making ability in the future (as future powers of attorney, trustees, etc.), and it is always nice if they have met us and are comfortable contacting us when that time comes. Another purpose for the meeting is to communicate to the children the parents’ long-term plans and wishes and (if the parents are comfortable) review their overall assets, estate plan, and how everything works and will work in the future when and if needed.

Agenda Items:

The agenda is something that can change based on the family and based on the parent’s needs and desires. Some clients are comfortable going over their complete plan with their families, covering everything we would cover in our full annual review. Others want to keep things much higher level and explain their long-term plan and wishes without discussing specific assets and amounts.

No family meeting will look the same, but most clients and children leave feeling that they are valuable and are helpful to everyone involved to help plan for the future.

So, when is the right time for a family meeting? When it is needed. That means when a family transition or a crisis is looming, that is the right time. If you are part of a family that would like to be proactive and communicate your plan to your family in advance of a transition or crisis, then scheduling a family meeting with your financial advisor early as part of your retirement planning or early longevity planning may be the best time. In any case, there is no wrong time unless you never do it.

If you or someone you know is interested in scheduling a family meeting and has questions about the process, please let us know. We are always happy to help. Reach out to me at Sandy.Adams@CenterFinPlan.com

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

From Overwhelmed to Empowered: A Widow's Journey to Financial Well-Being

Contributed by: Sandra Adams, CFP®

Bonnie's Story

Bonnie and Carl had what they considered a very traditional marriage, with well-defined and balanced family roles. Carl was a corporate executive, so it seemed logical that he would manage all the family finances. Bonnie oversaw the running of the household, including maintenance, meals, the kids, and the household social calendar.

Bonnie knew they were financially comfortable but never really knew how much they had coming in or going out. Nor did she know how much they had saved or invested for retirement. Carl would bring her the signature page for the tax return annually, and when she asked how they did it, he would say, "We did fine, Bonnie. We have plenty of money…you don't need to worry." She would sign the return but never see the actual numbers, nor did she ask.

All the bank and investment statements would come in Carl's name, and she trusted him so completely that she was never tempted nor interested enough to look at them.

When Carl turned 78, he suddenly became ill. He was diagnosed with stage 4 pancreatic cancer and had only months to live. Bonnie was overwhelmed with the news. All she could do was care for Carl and try to spend what little time she had with him in a quality way. This did not involve asking him questions about their finances. When he passed away four months later, she found herself utterly ignorant about her financial situation and was quite anxious about what her financial future might look like. It was all a mystery to her.

Theresa's Story

Theresa was a caregiver for her husband, Henry, who had Parkinson's. She cared for him in their home for nearly eight years. Henry had managed the financial responsibilities during the marriage and continued to do so until the very end of his illness. Theresa did all she could to learn about their finances from Henry and started to manage them on her own. She understood their financial situation and what it might look like for her when Henry passed.

However, with the intense caregiving duties, not a lot of the information "is stuck." While she could pay her bills and had a firm grasp of their income and expenses, she had no sense of what her new normal would be. Nor did she have any relevant knowledge about how their investments and savings worked or how she would use them for herself going forward.

She also found herself anxious and depressed; the caregiving had kept her socially isolated. By the time Henry passed away, she had discovered that she had not been out with friends in over five years and had little sense of what was going on in the real world. She was overwhelmed and didn't know where to start.

These examples illustrate just two situations in which widows find themselves. While more women these days are involved with or in control of the financial planning for their families, it's not uncommon for some to find themselves in the dark when it comes to their marital and financial affairs. If they're not curious or forthright in asking to participate in the planning conversations, they likely find themselves in situations like Bonnie and Theresa — overwhelmed by the loss of their husbands and lacking the information they need about their own finances, entirely at a loss about how to plan for themselves.

What Can a Widow Do If She Finds Herself in This Kind of Situation?

1. Build a team. Start with a professional decision-making partner or team of partners to help. A financial adviser who focuses on comprehensive financial planning (a CERTIFIED FINANCIAL PLANNER™ professional) should be part of the team. In addition, you might consider adding a Certified Professional Accountant (CPA) and possibly an estate planning attorney to the team for guidance on the full scope of the financial picture.

2. Get organized. With the assistance of the financial planner, gather information on all income sources, savings, and investments, and then determine a budget and ongoing expenses for the new normal lifestyle. This will lay the groundwork for a complete financial picture and help you understand your financial resources now and in the future.

3. Learn financial planning basics. With the help of the team, learn the basics of financial planning based on your own plan. Part of collaborating with a financial planner is understanding how financial tools and resources work and how they can work for you.

4. Become empowered. Don't stop at the initial plan. To become fully empowered, you need to grow and develop financial confidence over time. Maintaining the relationship with your team over months and years provides trusted financial partners to go to for help with questions and making financial decisions in the future.

Becoming a widow can be overwhelming. If you haven't been privy to your marital finances before your spouse's death, the adjustment can be even more difficult. If you have found yourself in this situation or know someone who has, the help of professionals and basic financial education can empower you and help you reclaim your own financial independence.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial adviser about your individual situation. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc®. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

The examples provided above are hypothetical in nature and do not represent actual people or situations.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Planning Ahead for Later Retirement Living

Contributed by: Sandra Adams, CFP®

Clients often find their adventurous side once they retire. It is not uncommon for them to find themselves living in a different part of the country (or the world) from their family for at least part of the year to enjoy the benefits of a warmer climate and a more active lifestyle with others who share the same interests.

Planning conversations with these clients often make their way around to the topics of long-term care and the specifics of where they will want to live when they are older and potentially need care and who they want to take care of them. For most clients, they want to be at least living close to family later in life when they might need care, whether that means that family is providing care or they are receiving care from professionals and their family is just close enough to be able to see them frequently. That is usually the plan. We encourage clients to make those plans become reality well before they need care, but most people do not want to think about those things, so they put off acting on their plans.

Recently, though, I have had several clients starting to plan ahead (Yes! People are hearing the message!). They are taking the time to look at where they might want to live near their family in advance. For some, this might be an independent condo. For others, this is an apartment in a retirement community, a Continuing Care Retirement Community, or an Assisted Living Facility (if they are already experiencing care needs). The point is that they are thinking ahead and finding their “right fit” and finding the place they want to be before it is critical that they move. For some, they may have two places for a while and transition over time. For others, they determine it is time to move back “home” near family and give up the active retirement lifestyle with peers. Because they are planning in advance, they can determine what works best and take their time to make it work for them.

Planning ahead for where you will live in each of the distinct phases of retirement can be critical. Getting caught in a situation where you need to change your living situation or move to a care facility when you have not planned for it can be disruptive and challenging, at best, especially if you have yet to give it any thought. Plan ahead for your future long-term care and retirement living situation so that you and your family have the best overall experience possible in your later retirement years.

If you or someone you know needs assistance with these types of planning conversations, please reach out, we are always happy to help. Sandy.Adams@CenterFinPlan.com

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Don’t Be a Victim! Financial Abuse of Seniors – How to Spot Scams & Protect Yourself

Contributed by: Sandra Adams, CFP®

As a financial adviser in an almost 40-year-long practice, I work very hard to keep my aging client base educated on anything that might be a risk to them or their financial plan. Financial exploitation, including current fraud and scams, rises to the top of this list when it comes to the older adult population.

With technological advances, including artificial intelligence and access to computers, cell phones, and other devices, it is hard to keep up with how we can be attacked, who we can trust, and what is safe. According to the American Bankers Association, senior financial abuse is estimated to have cost victims at least $2.9 billion last year alone.

What is Senior Financial Exploitation?

This is a crime that strips older adults of their resources and independence. You should be on alert if you see signs of theft, fraud, misuse of another person’s assets or credit, or use of undue influence to gain control of an older person’s money or property. Those are signs of possible exploitation. Older adults who may have disabilities, including cognitive impairment, or may rely on others for help can be especially susceptible to scams and other fraud.

Dr. Peter Lichtenberg of Wayne State University’s Institute of Gerontology has done intensive research on financial exploitation in the senior population. He recommends avoiding scams by being aware of PRESSURE:

Phone: Phishing or text solicitations to start a scam.

Requests: That you send money by gift card, wire transfer, or cryptocurrency.

Ex tracking: Your personal information (Social Security number, date of birth, account numbers) to verify your identity.

Secrecy: Scammers insist that you keep their contact with you a secret!

Spamming: Multiple emails or texts, hoping one will catch you off guard.

Urgency: Scammers insist you act quickly before you become suspicious.

Repetitive: Requests to provide money or information (to wear you down).

Emotional: Scammers appeal to your emotions to make you panic (“your grandson is in jail”) or become excited (“you won the lottery”), so you act without thinking.

What are actions you should take to protect yourself against exploitation?

• Make sure your estate planning documents are updated and that you have someone prepared to make decisions for you in the case that you are unable to make those decisions for yourself.

• Shred receipts, bank statements, and unused credit card offers before throwing them away.

• Lock up your checkbook, account statements, and other sensitive information when others will be in your home.

• Check your credit report at least once a year (www.annualcreditreport.com) to ensure accuracy and ensure there are no unauthorized credit openings.

• Never give personal information, including your Social Security number, account number, address, or other financial information, to anyone over the phone or computer unless you initiated the call and the other party is trusted.

• Never pay a fee or taxes to collect sweepstakes or lottery winnings.

• Never rush into a financial decision. Ask for details in writing and get a second opinion.

• Consult with a financial adviser or attorney before signing any document you don’t understand.

• Get to know your financial adviser and build relationships with those who handle your finances. They can look out for any suspicious activity related to your account.

• Check with your trusted financial adviser before proceeding with transactions if you are not sure.

• Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your financial accounts.

• Pay with credit cards instead of cash to keep a paper trail. In the event of fraud, credit cards give you the best recourse for getting your money back.

• Feel free to say “no.” This is your money. Do not be pressured into making a decision.

• Trust your instincts.

What should you do if you suspect you have been a victim of financial abuse?

• Do not keep it to yourself — talk to a trusted family member or professional who has your best interests at heart.

• Contact your financial adviser, an officer at your bank, or your attorney.

• Contact Adult Protective Services in your state or your local police for help.

If you are helping older adults, what are the warning signs of financial abuse?

• Unusual activity in bank accounts, including large, frequent, or unexplained withdrawals.

• ATM withdrawals by an older person who may have never used a debit or ATM card in the past.

• Withdrawals from bank accounts or transfers between bank accounts that the older adult cannot explain.

• New companions accompanying the older person to the bank or financial planning appointments who have never been part of the relationship in the past.

• Sudden and uncharacteristic non-sufficient funds activity or unpaid bills.

• Suspicious signatures on checks or other paperwork.

• Confusion, fear, or lack of awareness on the part of the older adult client.

• Refusal to make eye contact, shame, or reluctance to discuss an issue or problem with their financial account.

• Checks written as loans or gifts when this is not typical of the client.

• Sudden change of address or bank statements that no longer go to the customer’s home.

• New power of attorney that the older adult does not understand.

• Altered estate planning documents.

• Loss of property.

If you suspect financial abuse, what should you do?

• Have a conversation with the older adult to try to determine what is happening; seek advice for these difficult conversations, if needed.

• Report the elder abuse to their bank or other financial institutions to help stop it and prevent its recurrences.

• Contact Adult Protective Services in your town or state for help.

• Report all instances of elder financial abuse to your local police. If fraud is involved, it should likely be investigated.

It is not uncommon to be vulnerable to fraud and scams. Older adults are even more susceptible than most due to things like social isolation, unfamiliarity with technology, cognitive decline, etc. Romance scams, grandparent scams, Medicare and Social Security scams, and new scams are catching us all by surprise and stealing thousands of dollars from unsuspecting seniors every day. Be educated, alert, and careful to avoid the risk of financial exploitation.

To keep informed of the most current ongoing scams, go to www.ftc.gov.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial adviser about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Managing Finances for an Aging Parent

Contributed by: Josh Bitel, CFP®

Being a child of an aging parent can often come with some unexpected responsibilities. As the people in our lives start to get older, an unfortunate reality is that they may need some help with managing their money. Whether making decisions on behalf of a parent, helping organize and consolidate accounts, making sure debts are paid on time, or sorting out an estate – this duty may bring forth some difficult decisions. Below are some ideas to hopefully help make this transition a bit easier.

Consider Establishing Power of Attorney

A power of attorney is a legal document that allows someone else to act on your behalf. This document is one of the "Big Four" estate planning documents that financial planners recommend everyone to consider. This document can and should only be granted when a parent is competent and able to make the decision. It does not mean that a power of attorney has complete control of their lives, but having one in place can help save time and money for family members who would otherwise have to go to court and be appointed if mom or dad should become incapacitated.

Zoom Out and Think "Big Picture"

Seemingly small things that come easy to younger generations may not be commonplace with our parents. Simply switching bills to auto-pay or income to be directly deposited into a bank account can go a long way toward simplifying and organizing monthly cash flow for mom or dad. Aging parents likely also have different time horizons, goals, and liquidity needs than their children. These differences must be taken into consideration when beginning to manage a parent's assets – more stable, income-producing investments often make more financial sense than stocks for aging folks, for example.

Leverage Professionals

Mom and/or dad may work with a financial planner or CPA who has known them for long enough to help make sense of their situation. It is important to understand that handing over the reins of managing the financial household can be a stressful transition for parents; leveraging the individuals in their lives who they have trusted to oversee these matters in the past can help you piece together this puzzle. If mom/dad doesn't have a trusted advisor in their corner, consider using yours or hiring one to help. If your parents do not already have an estate plan in place (see the "big four" linked above), consider partnering with an estate planning attorney to draft these documents. This will allow mom and dad to make sure they are transferring their assets to exactly who they want, when they want, and how they want. Otherwise, the state will choose their estate plan for them!

Be Aware of Emotions

Not only can needing children to help manage the household finances be a stressful time for parents, but siblings can also have a hard time coming to grips with seeing their parent's age. When having these conversations with mom, dad, brother, or sister – consider leaning on the idea that this doesn't mean they are incapable of managing their own affairs, but simply that you want to help take the burden off so they can enjoy their later years and not worry about trivial matters like paying bills and managing income.

There is no sugarcoating these kinds of conversations with family. Proud, aging parents will want to be independent as long as possible, and siblings may not want to impose on mom and dad's financial matters. Leading with the right approach and a careful plan of action can help alleviate some of these stressors and help simplify life for all involved. If you are considering having these difficult discussions and are interested in guidance, I encourage you to contact a trusted advisor such as a Certified Financial Planner™.

Josh Bitel, CFP® is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He conducts financial planning analysis for clients and has a special interest in retirement income analysis.

Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Leaving a Spirit Legacy

Contributed by: Sandra Adams, CFP®

In the normal course of our financial planning reviews and strategy sessions with clients, we review estate planning and the documents that clients should have in place. This ensures that they have protected themselves and their families legally and that their wishes can be carried out during their lifetimes and after their deaths from a healthcare and financial perspective. What we often neglect to discuss are non-legal estate planning documents that are available to help pass on non-financial/non-physical assets to family members.

What am I talking about? In conversations with clients, they often express that they would like to have a way to pass on to their families things like family stories, their most strongly held values, and the wisdom they have spent a lifetime acquiring. As it turns out, there is a document that can be drafted that was designed just for passing on such important family “assets” — it is called a Spiritual Legacy. Again, a Spiritual Legacy is not an actual legal document. However, it is a document that can be left to your family, and for many clients, passing on these important family stories and values is as important as other assets they might be considering leaving behind.

How do you write a Spirit Legacy?

There is no right or wrong way to write your Spirit Legacy. If you would like some guidance on getting started, “Creating a Spirit Legacy” by Daniel Taylor is a great guide that helps you get started and provides exercises on turning your thoughts into good stories to leave to your family. There is also no reason not to start the process early and to review often. While we may believe that we have the best family stories and values in mind to leave behind, we continue to live (and many of us will live long lives), so it is important to continue to edit and revise our Spirit Legacies to always reflect the best of our stories, our current values, and best of our wisdom too. 

The next time you review your estate planning documents to make sure they are up to date, be sure to make sure that a Spirit Legacy is on your list. Your kids, grandkids, and great grandkids will be glad you did! 

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Facing the Challenges of Only Child Caregivers

Contributed by: Sandra Adams, CFP®

According to AARP, one in five adults (equating to more than fifty million Americans), is providing unpaid health care or support to a loved one, such as an aging parent or a spouse with an illness or disability. Increasingly, there are more only-child caregivers attempting to provide care for aging parents. This trend is not likely to end anytime soon. An APM Research Lab analysis of Census Bureau data found that, among U.S. households with children, approximately 3 in 10 had just one child in 2017 compared with 2 in 10 in 1960.

It may seem counterintuitive, but caregivers without siblings can benefit in several ways:

• They can step up and make decisions to get things done without having to get consensus from siblings.

• They develop resilience and the ability to adapt to adverse situations and adjust to meet the demands; they are flexible.

• If things go wrong, there is no one to complain or put blame on the caregiver (except themselves).

• Caregiving in this way can create quite a strong bond between a child and their parent due to the amount of time spent together.

However, caregivers with siblings have more advantages:

• They have the support to help make difficult decisions; they don’t have to make those decisions alone and have to feel guilty that they may or may not have made a bad decision.

• They can share in the caregiving duties and obligations with their siblings so that there is less chance of burnout.

• Many times, pulling together for caregiving for an elderly parent(s) can create an even stronger family bond.

• Having multiple siblings with many eyes on elderly parents can often ensure that things are not missed (i.e., signs of diminishing mental capacity, other health issues that might be missed if only one child were trying to cover it all).

• If parents do not live near their one child, having multiple children means there is more likely to be at least one child that lives near the parents to provide more hands-on care while other siblings can take on other caregiving duties to pitch in.

• Having multiple siblings prevents the caregiver isolation that occurs with only child caregivers.

For only child caregivers, planning ahead is the key to having a successful caregiving experience. Here are some suggested actions: 

1. Have an Advanced Longevity Plan. This begins with having conversations with your parent in advance of the aging process about their future aging: about their future challenges, the alternatives they wish to consider, the resources they have to use, and the experience they hope they have. It might include having difficult conversations, but those conversations will lead to proactive planning that will help prevent making decisions in a time of chaos later.

2. Get Organized. From a financial and medical standpoint, this means working with your parents to collect their information and data and get it organized and in one place. In addition, it means working with financial and legal professionals to make sure their documents and financial accounts are in the best possible position to serve them for the long term.

3. Find Others to Help. When the time comes to provide actual assistance and care, realize that you cannot do it alone. Without siblings to help, look for other family members, friends, community resources and paid caregiver resources (if financial resources allow) to help. Make sure to set boundaries on how much care you can personally provide. If you are still working, you may need to protect your financial future; in any case, preventing burnout is important for personal well-being.

4. Take Care of Yourself. This means periodically getting some respite, taking time for self-care, and making sure that you are doing what is best for your future, as well as what is best for your parents. According to a 2015 AARP survey, about 60% of Americans caring for adult family members also work. For working caregivers, especially only child caregivers, it is particularly important to look into the time that you might be able to take off from work if that relieves stress (Family and Medical Leave Time, vacation time, unpaid/paid personal leave, etc.). Most family caregivers do need to make some changes to their work to be there for their family members. The financial burden, both current and future, for an only-child caregiver can be huge since it cannot be shared with multiple siblings. Most family caregivers — 78% in one AARP study — incur out-of-pocket expenses related to their caregiving role, with the average caregiver spending about $7,000 per year on things like rent, mortgage, medical bills, etc.). The average long-distance caregiver spends about $12,000 per year. In addition, seek caregiver support or counseling, if you need someone to talk to.

5. Build a Team. This may be the most important step for an only-child caregiver. Realizing that you cannot do everything alone is a big “Aha” for many caregivers. Feeling like it is an obligation to do everything yourself is something you must shake or risk emotional, psychological, and physical (health/stress) burnout. Building a well-rounded team to delegate the things that you do not want to do, cannot do or that you find stressful is crucial. This likely means adding an Estate Planning/Elder Law attorney, a financial adviser, a CPA/tax preparer, perhaps a Geriatric Care Manager, an assisted care team, and/or other team members that can help in providing the care and services needed to help you manage your parent's needs while you also manage your own life. These team members should all talk to each other and be on the same page so that the plan works well for the benefit of your parent’s plan.

As our demographics shift and there are more only children caring for aging parents, advanced longevity planning becomes more and more important. Only child caregivers, especially single children, need the support of other family members, community resources and professionals to provide a team to support their loved ones. Realizing that this job of caring for parents alone is a balancing act of providing care and ensuring that they have a secure future for themselves is crucial, as is taking steps to draw the proper lines as a caregiver must. Planning ahead is the best way to make sure that the best lives for all involved can be protected.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

The Trend Towards Later Retirement

Contributed by: Sandra Adams, CFP®

According to The Pew Research Center, over the next decade, workers over age 55 will grow 4 percent per year — 4 times faster than the entire workforce. Older workers are not only a larger percentage of the overall workforce but also an important part of the workforce with their knowledge and experience base.

So, what are the reasons why people are working later in life?

• Some may need additional income after “first” retirement.

• Some indicated they thought they needed to supplement what they had already saved to keep up with inflation.

• Some may want something of value and purpose to do with their time and to feel that they are contributing to something meaningful.

• Some (especially women) are returning to work and starting their careers later in life after raising their families, and their children are out on their own.

• Some return to work after serving for some time as a caregiver to a spouse or parent and feel like they need to make up for lost time in their career and save for future financial security.

No matter what the reason(s), adults remaining longer in the workforce benefit from:

• Continuing to challenge themselves cognitively.

• Continuing to learn new things on the job.

• Continuing to socialize with coworkers and others in a work environment regularly.

With life expectancies anticipated to continue to grow in the coming decades, living to one hundred and beyond will be the norm in the not-too-distant future. And when it is, most of us will be working longer, either out of necessity to support ourselves financially and/or to keep ourselves cognitively challenged for the years we are living. So, if a longer life is in your future, a longer working life may also be in your future. It may not be only your first career that you retire from, but a second or third career. There is a lot to look forward to in a 100-year life!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc., is not a registered broker/dealer and is independent of Raymond James Financial Services.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Any opinions are those of Sandra D. Adams, and not necessarily those of Raymond James.

Avoid Common Inheritance Mistakes with These Tips

Contributed by: Sandra Adams, CFP®

If you are like most of our clients, anticipating an inheritance likely means something is happening or has happened to someone you love. This often means dealing with the pain of grief and loss in addition to the potential stress of additional financial opportunities and responsibilities. Combining your past money experience and your relationship with the person you are losing or have lost can cause varying degrees of stress.

Approximately 15% of American adults expect to receive an inheritance in the next decade, according to the New York Life Wealth Watch survey — a shift of wealth being called the "Great Wealth Transfer." The adults who anticipate receiving an inheritance expect it from a parent, spouse, family member, or another individual. On average, adults expecting an inheritance anticipate receiving over $700,000. Only 42% of adults who expect to receive an inheritance feel very comfortable financially handling the new wealth that will be passed down to them - and nearly twice as many women who expect to receive an inheritance (23%) feel uncomfortable managing their inheritance than men who expect to receive an inheritance (12%).

The statistics are not kind. Studies show that roughly 33% of all inheritors have a negative savings balance within two years of receiving an inheritance. After five years, that number jumps to over 70%. Sadly, only about 30% of inheritors take their inheritance seriously and use it to plan for their future. It is important to be aware of and understand the typical habits of inheritors to avoid the risks.

Navigating grief, discomfort with handling finances, and family dynamics can make it hard to know what to do when it comes to anticipating an inheritance. What steps can you take to ensure that you avoid the potential risks that lie ahead and use your possible inheritance to help you make the best use of any funds for your current and future financial goals?

1. Don't Rush to Make Any Big Decisions. Often, when one receives an inheritance, it is hard to resist the urge to splurge on big purchases that you haven't been able to afford in the past (a fancy new car, an exotic international vacation, etc.). A best practice is to avoid major purchases until you can take the time to do some intentional planning. We recommend taking a proactive time out from decision making (we call this a "Decision Free Zone") to process the reality of having a new financial situation and to determine how you would like that to impact your current and future financial plans, including retirement and other financial goals.

This purposeful time-out can help you avoid making promises to do things for others with the new funds. It is important that you inform others who may be expecting your financial help that you will not be ready to make those decisions for some time. This takes the stress and pressure off you and allows you time to plan what you will do with the money at your own pace. You may eventually decide to help others, including family members or charities, with some of the money if it fits in your financial plan, but by avoiding making promises right away, you don't make and/or break commitments that may lead to hurt feelings and broken relationships that could impact future relationships.

2. Set Reasonable Expectations About Timing. Once you have been informed about your inheritance, you may wonder when you will receive it. It is important to find out what types of accounts and assets you might be inheriting to set a clear expectation of how long it takes to get them.

You shouldn't expect to receive funds from an inheritance for at least one to two months following the death of a loved one (if you get them sooner, it is a pleasant surprise!) It could take longer if the assets are not liquid. In some cases, the estate is held up longer for final expenses and/or if legal issues need to be resolved. 

3. Be Aware of Taxes. It is also important to be aware of the types of assets you are inheriting so that you are aware if you might owe taxes on any of the dollars you are receiving. For instance, if you are receiving funds from an IRA or an annuity contract that might have a taxable portion, and you don't have taxes withheld at the time of distribution, you might need to plan to have extra funds at tax time to pay the bill.

Setting aside a portion of the inherited dollars for any possible taxes due is a good idea so you don't get caught blindsided at tax time.

4. Consider the Details. Once you receive the assets, many other questions (besides taxes) will be answered, such as: How should I hold the assets (i.e., in what registration?) Should I hold my inherited assets separately from other assets held with my spouse? Should I hold the same investments as my grandfather/father/etc. held, or should I change the investments? If I inherited IRA assets, how long do I have to distribute the account? Getting the help of a financial adviser to answer these questions is highly recommended.

5. Work with an Advisor. Working with a financial advisor to determine what has changed or could change with your financial picture with the new inheritance is highly advisable. This could include things like:

• Income

• Savings/Emergency Funds

• Spending

• Investments

• Debts/Liabilities

• Health Care

• Home

• Insurance

• Estate/Legal

• Self-Care

• Family/Children

• Gifting/Charity

When your changes have been identified, it makes sense to determine how they can help you identify and meet your financial goals. With the help of your financial advisor, you can design a plan for how to meet your financial goals with your new inheritance. Because it can be overwhelming, we recommend determining what goals must be tackled first and what can wait until later based on a "Now…Soon…Later" schedule. Then, meet regularly with your financial advisor to begin checking off the tasks it takes to meet your goals and make the most of your inheritance.

For many, receiving an inheritance means the loss of a loved one. And the fear of failing with the big responsibility that comes with handling what is being left financially (especially if you don't feel confident handling money) might leave you feeling overwhelmed. By taking your time and using the guidance of a financial advisor who will provide you with education and guidance, you can set yourself up for success to use your inheritance to make the most of your current and future financial goals.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams, CFP® and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Your Partner Was Diagnosed with Dementia: What Now?

Contributed by: Sandra Adams, CFP®

Maybe you knew there was a possibility that it could happen. Maybe your partner's mother or father had dementia, and perhaps even their siblings, so you were watching for the signs. Or, maybe, it came out of the blue, and you never thought that dementia would ever impact you or your family. 

When you start to notice changes in memory, behavior, and judgment that are not normal with your partner, it gives you a sinking feeling, whether you may have been expecting it or not.

Warning Signs of Dementia

According to the Alzheimer's Association, there are ten early warning signs of Alzheimer's and Dementia that you can be watching for:

1. Memory Loss That Disrupts Daily Life

Forgetting recently learned information, forgetting important dates or events, asking the same questions repeatedly, and increasingly needing to rely on memory aids or family and friends for things they used to handle on their own are all signs.

2. Challenges in Planning or Solving Problems

This may involve changes in the ability to follow a plan or work with numbers. For instance, they may have trouble following a familiar recipe or keeping track of monthly bills. They may have difficulty concentrating and/or taking longer to do things than they did before.

3. Difficulty Completing Familiar Tasks

Examples include having trouble driving to a familiar location, organizing a grocery list, or remembering the rules of a favorite game.

4. Confusion With Time or Place

This may involve losing track of dates, seasons, or the passage of time, trouble understanding something if it is not happening immediately, and possibly forgetting where they are or how they got there.

5. Trouble Understanding Visual Images and Spatial Relationships

Some people experience vision changes that may lead to difficulty with balance or trouble reading. This may also lead to difficulty judging distance and determining color or contrast, causing issues with driving.

6. New Problems With Words in Speaking or Writing

This often presents as difficulty following or joining a conversation. They may stop during a conversation and have no idea how to continue or repeat themselves. Moreover, they may struggle to find the right words.

7. Misplacing Things and Losing the Ability To Retrace Steps

They may put things in unusual places, lose things, and be unable to go back over their steps to find them again or accuse others of stealing, especially as the disease progresses.

8. Decreased or Poor Judgment

Experience in changes in judgment or decision-making. For example, when dealing with money or keeping themselves clean.

9. Withdrawal From Work or Social Activities

Because of the changes in the ability to hold or follow a conversation, many people experiencing changes due to dementia may withdraw from hobbies, social activities, or other engagements.

10. Changes in Mood and Personality

This shows up as being confused, suspicious, depressed, fearful, or anxious. They may be easily upset at home, with friends, or when out of their comfort zone.

If You Suspect Your Partner Has Dementia...

Don't ignore the signs. Schedule an appointment with your partner's primary care physician immediately to seek a diagnosis and take the next steps.

If there is a dementia diagnosis, you are likely completely overwhelmed. Your world has been turned upside down, and it is likely hard to think beyond each day at a time, let alone the next month or year. However, taking steps to plan ahead can help things go more smoothly for you and your entire family. 

As the disease progresses, things are likely only to become more hectic, making it even more difficult to think clearly. Getting your legal, financial, and end-of-life planning finalized early on will make it easier for you to make the necessary decisions and communicate those decisions to the right people before things get even harder.

Legal

Ensure your partner has updated legal documents in place (if they don't already) before they are designated as unable to make those designations/decisions for themselves due to their new diagnosis.

• Patient Advocate/Health Care Durable Power of Attorney: This names someone as a "proxy" to make medical decisions for someone when they are not able to.

• Living Will: This informs medical professionals of how one wants to be treated at the end of life (dying, permanently unconscious, etc.) and cannot make decisions on their own.

• A Do Not Intubate, or DNI, order: This lets medical staff know someone does not want to be put on a breathing machine.

• A Do Not Resuscitate, or DNR, order: This lets medical staff know not to perform CPR or other life-saving procedures in case the heart or breathing stops.

• General Durable Power of Attorney: This names someone as a "proxy" to make financial decisions and handle financial transactions for someone when they are not able to.

• Will: This names someone to be the executor to handle their estate after they are deceased.

• Trust: For some, a Revocable or Irrevocable Trust naming someone to handle assets on their behalf and for their benefit either during their lifetime or after death is appropriate.

Financial Planning

It is important to work with your financial adviser to make sure fiscal affairs are for several reasons:

• Make sure that all your financial records are accounted for using a Personal Recording Keeping document. Keep it in a safe place before that information is lost or forgotten by either or both partners.

• Work with your financial adviser to make sure you have planned well to provide for your financial future, including your now more certain long-term care needs, including dementia care.

• Ensure assets are positioned and titled properly to assist with future long-term care needs and any future resources and assistance that may be needed.

• Research any insurances you may currently hold to make sure you understand how they may be used for future long-term care needs.

• Talk about how you might want to handle future care needs for your partner with dementia. If that includes you, as the healthy spouse, taking time from work (if you are not yet retired), plan for how you will handle that financially. Planning ahead for how care will be funded is a key piece of future planning.

• Research community and professional resources in your area. Put together a team to help you when needed.

• Communicate your future plan to your family so that they can help you execute it when things are more hectic, and the disease is more difficult to deal with.

End-Of-Life

There is currently no cure for Alzheimer's disease or any other dementia. Some treatments, though, can manage some of the symptoms for a time. 

However, a person who has been diagnosed will gradually decline, and the condition itself (or combined with additional health problems) will eventually result in death. For that reason, it is also important to plan ahead and make decisions for end-of-life early on. 

Making sure the important legal documents are in place is the first step. Communicating preferences for end-of-life to important family members is the second step. If there are any preferences for end-of-life services, that should be documented. Using a Letter of Last instruction document is a good idea.

When your partner is diagnosed with dementia, it can be a shock. For many, it can be so overwhelming that it can be hard to breathe, let alone get your head around doing anything. But once the numbness wears off, lean on your financial adviser and professional team of advisers to get a plan in place so that the legal, financial, and end-of-life pieces are in order so that you can concentrate on caring for your partner and their ongoing needs.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.

Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.