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.

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.

Another Way to Make Retirement Purposeful for You

Contributed by: Sandra Adams, CFP®

One of our Center values is Education and Personal Growth. Continuously learning and growing in our personal and professional lives is core to what we are and what we do. It is also something we incorporate into conversations with clients as they think about what might make their retirements meaningful to them. 

Beyond knowing that clients are financially prepared for their retirement, we want to help make the next stage of their lives as purposeful and satisfying as possible. Part of that is helping clients explore hobbies, volunteer activities, travel, and learning that will fulfill them and make their lives full.  

Locally, there are several universities that can help fulfill the need of those looking to continue to learn and grow personally in retirement. We have three universities in Michigan that have been named Age-Friendly Universities – Michigan State University, Eastern Michigan University, and Wayne State University. In particular, Wayne State University offers a 75% tuition reduction to students 60 or older and sponsors the Society of Active Retirees, a 1,200-member lifelong learning community. Its volunteer force includes 300 persons 50 and up, and more than half of its faculty and 40% of staff are 50 or older. The WSU Institute of Gerontology also has an extensive research portfolio on aging, having received $54 million in funding for aging issues since 2015.

If you are interested in learning more about Wayne State University’s Age-Friendly University benefits, click here. And if you are interested in learning more about the Society for Active Retirees, click here. If you are interested in having a conversation about exploring other options for developing your own purposeful retirement, please reach out to one of our planners at The Center to start that conversation today.

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 Sandra D. Adams, CFP® 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.

When to Use Your Emergency Fund

Contributed by: Sandra Adams, CFP®

Who actually has an emergency fund? “For those age 50 and up, it’s typically those who work with a financial advisor”, says Sandy Adams, CFP®. “The general population is bad at this. It’s particularly important to have an emergency fund as you get closer to retirement”, she says.

Read the full AARP article HERE!

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.

Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Raymond James is not affiliated with AARP.

Have You Prepared Your Advocates?

Contributed by: Sandra Adams, CFP®

Going through the process of completing your estate planning documents is not an easy process. Working with an attorney to determine what documents you need, how you want the language written so that your assets are handled and decisions are made the way YOU want them, and choosing the best advocates to carry out those instructions can be very involved. No wonder it is a task that many people put off doing – it can be overwhelming!

Common Documents With Named Advocates

The most common estate planning documents that individuals have drafted (and that will require advocates to be named) are the following:

Most clients are so relieved when their documents have been drafted; it is a huge weight off their shoulders to have so many important decisions made and in place. It feels satisfying to have the binder of documents drafted by the attorney in hand and completed. 

Perhaps if you are even more “on the ball,” you follow through and get copies of your documents to your financial advisor and update your asset titling and beneficiaries according to the funding instructions provided by the attorney. If you have done that, you are ahead of the majority of clients, most of whom take the big binder home and file it away in a safe place and consider their estate planning completed! But is it?

Have you taken the final step and communicated to those you have chosen as your advocates that you have named them in your documents? 

The Importance of Communicating With Your Advocates

It is not uncommon for people to name others as future advocates for them in their legal documents, but not to communicate to them that they have been named. If you’ve ever been in the shoes of being that named advocate, and getting that “surprise” call that you suddenly need to make a life and death decision about someone’s health treatment when you had no idea you were named as their health care advocate and had not had conversations with them regarding their wishes around end of life treatment, you might think differently about having those proactive conversations.

It is extremely important to take this last step, and not only communicate with your advocates that they have been named in your documents but also give them the key information that they will need to fulfill your wishes.

Here is the key information you need to share:

Patient Advocate/Health Care Advocate:

• Drug allergies

• Current medications (or where to find your medications list)

• Your primary providers, your wishes on Code Status (i.e. DNR or full Code), and where your estate planning documents are located

• Your past surgical history

• Whether or not there is metal anywhere on your body

• What your wishes are for end-of-life care and treatments (i.e. aggressive vs. comfort treatment)

• Plans for future care and any professional relationships and resources that can be used to assist the advocate in their role (social workers, Geriatric Care Managers, etc.)

Durable Power of Attorney/Successor Trustee:

• Contact information for your professional advisors and, if possible, an introduction to those professionals.

• Instructions on where to find an “open me first” document (ex. Personal Financial Record System) that details your financial life (bank accounts, investment accounts, insurance policies, government benefits, employer benefits, etc.)

• Where to find your estate planning documents and a review of your Trust (especially for your successor Trustee, so they have a heads-up on how they might be managing your assets)

• An overview/general conversation about your wishes regarding handling your assets for future care and your values around money.

Executor/Advocate:

• Contact information for your professional advisors and, if possible, an introduction to those professionals.

• Instructions on where to find an “open me first” document (ex. Personal Financial Record System) that details your financial life (bank accounts, investment accounts, insurance policies, government benefits, employer benefits, etc.)

• Instructions on where to find your Letter of Last Instruction document outlining your wishes for after death.

• Where to find your estate planning documents, especially your Last Will & Testament, which will be the guiding document for your Executor.

• An overview/general conversation about your wishes regarding after-death arrangements, about your Will, and how you would like your assets handled post-death, especially if there is no Trust for assets to flow to.

The more information you can share with your future advocates, the better prepared they will be to make the decisions you would want them to make on your behalf should they ever need to serve. An advocate’s job is to be your fiduciary, which means to make decisions in your best interest; without the benefit of having full information on you and your situation, you make it almost impossible for them to do their job to the best of their ability.

If you have taken the time to draft your estate planning documents, our best advice is to complete the process by fully preparing your advocates to serve in your best interest – they’ll 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 Sandra D. Adams, CFP® 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.

Plan Now for Your 100+ Life

Contributed by: Sandra Adams, CFP®

Between 1900 and 2020, the average life expectancy in the United States rose by more than 30 years. This was due, in part, to improvements in multiple health measures and medical advances such as vaccines and antibiotics. As of 2021, there were 89,739 centenarians living in the U.S., nearly twice as many as there were 20 years ago, according to data from the Population Division of the United Nations. According to research by Dr. Michael Roizen, emeritus chief wellness officer at the Cleveland Clinic and Al Ratner, former CEO and chairman of Forest City Enterprises, as published in their book: “The Great Age Reboot: Cracking the Longevity Code to Be Younger Today and Even Tomorrow,” there are promising medical breakthroughs happening now that could prolong life even more in the near future. According to Dr. Roizen, there is a point in the near future when “90 will be the new 40” in which people will live to be 150 and retire at age 75!

Whether you WANT to live to 100+ may be irrelevant — it may be happening whether you desire to live that long or not. If we will truly be living to age 100+, how should we begin to plan for this? Not only from a financial perspective, but from a personal, psychological and emotional standpoint so that we can have meaningful and valuable long lives? Most of us need to make some changes to prepare for a longer life.

Change Your Mindset About Work

We need to start by changing our mindset about working. Retirement needs to be thought of as more than just the end of your first career/working life at the age of 65 and moving into a life of leisure. If we plan to live to 100+, most of us will need to work past age 65 in some capacity. But can that allow us to work in the same career with a more flexible schedule, or start a business, or do something completely different — something we have always wanted to do, but didn’t feel we could take the risk when we were younger? This is the time to make our next phase of life your best phase of life, starting with making your work meaningful and challenging. For some, this may be by finding our purpose and passion and putting it to work first by finding a way to continue to support us financially a little longer than we originally planned; by doing this, we put ourselves in a better position to be financially independent for the full extent of our long lifespan. For others, this may mean putting our time and talent to work volunteering for causes that mean the most to us and giving back to our communities.

Change Your Mindset About Health

Making a priority of health and well-being is another change we must make if we are to thrive in our quest to live the 100+ life. In order to maintain overall well-being, the following are important steps you need to follow:

• See your doctor(s) regularly for check-ups and proactive testing and vaccinations.

• Maintain a healthy diet (learn to cook or purchase healthy meals if you don’t now).

• Drink plenty of water.

• Avoid unhealthy habits (smoking, drinking too heavily, etc.)

• Maintain a healthy weight.

• Maintain a regular sleep schedule (6 – 8 hours of sleep nightly is recommended).

• Maintain social engagement; avoid social isolation.

• Keep your mind active (continuous learning).

• Maintain a safe living environment.

• Get regular exercise, including cardio, weight training and stretching.

• Get fresh air as much as possible.

• Use stress reduction exercises, including meditation.

• Maintain good mental health; seek a therapist, if needed.

• Seek resources for care assistance, when/if needed.

Change Your Routine and Pursue Your Passions

Determine now what you will do in your next phase of life. When and if you do stop working (some of us will work in some capacity forever), what will you do that means something to you? What are the goals you want to accomplish during your lifetime that are meaningful, personally satisfying, and psychologically rich? All of these components need to exist in your mix of goals and it is important to have a good balance. To fill your life of 30+ years of retirement, you will need to come up with a long list of goals and activities to fill your years. Start now to think of the things you might want to accomplish and the timeframes in which you might want to accomplish them. List anything that you’d like to make happen - getting these wishes down on paper makes them that much more likely to happen! Your “wish list” may include:

• Travel to a particular destination.

• Writing that novel that you always said you’d write.

• Starting a non-profit or working for one that supports a cause that matters to you.

• Taking a mission trip.

• Taking a ride in a hot air balloon.

• Going back to school and getting your college degree.

• Visiting the town where your great grandmother was born in another country and starting to put together your family history.

There are so many possibilities! And the goals that are meaningful to you will be different than those that are meaningful to someone else. The sooner you get started, the better. None of us know our future health trajectory — so get working on those goals and make them happen while you can. The good news is, for many of us, the longer we stay mentally engaged, healthy, and active, the better chance we have to keep going strong!

Change Your Social Engagement

It seems that who we engage with as we age is important. First, stay engaged — with SOMEONE! Staying engaged with people from different generations is a key to staying active and healthy in your next phase of life. This engagement may come in the way of activities with the many generations of your family. Or it may come by being intentionally engaged with other generations — by where you choose to live, how and where you choose to volunteer, engage socially, etc.

Start now!

The 100+ life is truly something most of us should be thinking about, anticipating and planning for. How can we start planning now in order to have to have the most engaging, meaningful and healthy long life possible? One in which we thrive during our entire life, give back to ourselves and our communities in a meaningful way, and are able to support ourselves financially for our entire lifespans? Only by starting the planning process now and anticipating a long life can we be prepared. Work with your professional planning team to start designing your Longevity Plan now. Be prepared for your 100+ 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.

How to Reduce the Risks of Dementia and Diminished Capacity to Your Retirement Plan

Contributed by: Sandra Adams, CFP®

Senility is what they used to call it and it only happened to the very elderly like our great grandparents.  Surely, not us. We are healthy, educated, and financially well off, so we don’t need to talk about senility or plan for it. THINK AGAIN!

Senility is now known as Alzheimer’s, a disease that accounts for 60-80% of dementia. The statistics are alarming! According to the Alzheimer’s Association, more than 1 in 9 people over age 65 have Alzheimer’s disease. The chances of an Alzheimer’s diagnosis doubles every five years after age 65 (beginning at approximately 5.3% at age 65 and going from there).   If the disease runs in your family, a head injury, hypertension, diabetes, stress, excess weight, depression, and many other conditions increase your risk of diagnosis.

Risks of Not Planning

I don’t need to tell you that losing your memory is a scary proposition. The fact that you could live for years (if you are otherwise healthy) without knowing who you are, where you are, who any of your loved ones are, and not recall your short nor most of your long-term past is frightening.  Even more disturbing is that you also forget how to care for yourself, and your body begins to forget how to function.  Family may be able to assist you at first, but as time goes on professional care is usually needed.  A few thousand per month for at-home caregivers is not out of the question.  As more care is required, the few thousand dollars per month can quickly become five thousand to ten or twelve thousand dollars a month, depending on the level of care needed and where you live. The impact on your financials, if you haven’t planned, can be detrimental.

In addition to the care risks, there are capacity risks.  Those who develop Alzheimer’s or related dementia go through a period (sometimes before their diagnosis or possibly early in their diagnosis) when their capacity is considered “diminished.”  They are not yet considered fully incapable of making their own decisions. In other words, the right to make decisions has not yet been taken from them, but their ability to make decisions is compromised.  In this stage of the game, we are generally watching for behavioral changes in clients:

• Missing Appointments

• Getting confused about instructions/having difficulty following instructions

• Making more frequent calls to the office to ask the same questions

• Trouble handling paperwork

• Difficulty recalling decisions or actions

• Changes to mood or personality

• Poor judgment

• Memory Loss (generally)

• Difficulty with basic financial concepts

Concerns that are more significant can be financial fraud and exploitation. Clients with diminished capacity are incredibly vulnerable to others who try to take advantage of their inability to understand what is or is not real. Unfortunately, 1 in 10 seniors over age 65 are victims of financial exploitation, according to the Government Accountability Office, with losses totaling over $3 billion annually. While most of this exploitation is at the hands of strangers, sometimes family, friends, and caregivers exploit the vulnerable.

Proactive Solutions

Now that I have completely frightened you about dementia and diminished capacity, let’s take a step back and look at what we can and should be doing to plan and protect your plan proactively against these risks.

From a personal health perspective, the Alzheimer’s Association suggests:

• Combined physical and mental exercise

• Continuous Learning

• Social Engagement

• Get good sleep

• Eat a healthy diet (Mediterranean Diet recommended)

From a financial planning perspective, it makes sense to put together a proactive aging strategy as part of your retirement planning to address the potential risks of dementia/Alzheimer’s/diminished capacity on your comprehensive financial plan.  What should this aging strategy address?

•  Legal Documents

• Care

• Finances

• Legacy

Dementia and diminished capacity are scary.  We don’t want to think about a time when we might not remember our names, remember our loved ones, or even recognize our reflections in the mirror. Dementia and diminished capacity can wreak havoc on our families and our financial security if we don’t plan. Take steps today to put together an aging strategy so that you and your loved ones are prepared. Preparation is the best defense!  If you or anyone you know need assistance with this topic, please let us know.  We are always happy to help!

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.