ElderCare Planning

Family Caregiving – The REAL Long Term Costs

Contributed by: Sandra Adams, CFP® Sandy Adams

It is hard to avoid the statistics. They are in news articles. They are on TV. They are on social media. People are living longer and the potential costs that older adults can expect to pay for long term care are astronomical.  AARP recently published a study “Valuing the Invaluable: 2015 Update.”  The study reported that in 2013, about 40 million family caregivers in the U.S. provided an estimated 37 billion hours of care to an adult with limitations in daily activities.  This care equated to an estimated economic value of $470 billion (up from an estimated $450 billion in 2009). 

The Impact of Relying on Family Care

Many older adults either plan for their family members to care for them in older age or their failure to plan leaves them no other alternative but to rely on family members for care.  Unfortunately, older adults do not realize that they might be impacting their family members’ long-term financial future when they are put in the position of being a caregiver (especially when it wasn’t planned). 

The AARP study reported the following findings of family caregivers:

  • 61% made workplace adjustments, which included cutting hours, taking leaves of absence, receiving warnings about attendance and turning down promotions; all of which affected pay negatively.
  • 22% of retired caregivers left the workforce early, which affected potential retirement savings, pensions and/or Social Security benefits.
  • 68% of caregivers used their own money to support long term care costs, which drained funds they had planned for their own future financial independence.

So what can be done to help avoid these potential pitfalls for the financial health of the entire family? 

  1. First and foremost, plan ahead.  If you can plan ahead, especially from a financial perspective, for future long term care costs you can either pay for professional caregivers OR pay your family members to provide care and offset any benefits they might be giving up by stepping away from their planned career path. 
  2. Secondly, know your resources.  Outside of your family, know what community and government resources might be available that can relieve stress from your family.
  3. Last, communicate your plans.  If family caregiving is part of your family’s plan, make sure everyone is on board and has a way to make things fair (consider paid caregiver contracts, etc.).  It is easier for all family members to make things work if they know in advance what the contingencies might be.

If you and your family are planning for family caregiver situations and have questions I can help with, please don’t hesitate to give me a call.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

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Family and Finances: How to Help Aging Parents Stay in Control

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Contributed by: Sandra Adams, CFP® Sandy Adams

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I recently attended my daughter’s college orientation.  During one of the presentations to parents, the speaker said something that struck a chord with me:

“As hard as it may be, it is time for you as parents to let go of the reigns and give your children control of their own lives. Let them take care of things for themselves and make their own decisions. This may mean that they make some mistakes, but this is the time for them to learn.” 

Wow!  Did that hit home!  How hard is it as a parent to let go and let your child start doing things for themselves when you have been doing things for them for the last 17 – 18 years?  But isn’t this what your child has been waiting for?  To be an adult and to have control over his or her own life?  Isn’t that what we all wait for?

Why Control Matters at Any Age

As I sat and thought about the issue of control a bit more, I began to think about the older adult clients that I work with and about how hard they fight to keep control over their lives as they age.  I thought about the adult children of those clients who often feel as if, at some point, they may have to take away that control if the older adult losses the capacity to maintain control for themselves.  It can be particularly stressful for adult children to be put in a situation of needing to take over “control” for their aging parents without having a clear idea of their parents’ desires for their lives as they age.  So, what can be done to avoid this potential situation?

  • Have open and honest conversations about the older adult’s plans for their future aging life; this may include a family meeting (tips here on having your own) that is led by your financial planner to include conversations about financial assets and how longer term care planning and future housing options might be funded.

  • Make sure that all of the proper estate planning documents are up-to-date and that they are accessible (consider keeping copies on file with your financial planner’s office, as well).  Particularly important are Durable Power of Attorney Documents for General/Financial and Health Care/Patient Advocate.

  • Ensure that all wishes and plans for the future are documented in writing.  Also make sure to have your financial affairs organized and documented.  Our Personal Financial Record Keeping System & Letter of Last Instruction is one helpful tool you can use.

Control is something we all want to have over our own lives … and something we fight to keep.  As parents of young adults, we struggle to let go of the control for fear that our children might take a few falls.  At the same time, we might be struggling with the thought of having to take control from aging parents who might be struggling with capacity issues as they age.  But, if you’ve planned ahead and helped your parents communicate their wishes, you won’t have taken their control from them at all. Instead, you will be assisting them in carrying out their own well-designed future.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. You should discuss any legal matters with the appropriate professional.

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Beyond Retirement: An End of Life Planning Lesson

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Contributed by: Sandra Adams, CFP® Sandy Adams

As we work with clients at The Center, we talk about how to “live your plan.” To us, that means focusing and achieving your financial goals so that you can you can live those goals that you have been envisioning within your planning.  To be honest, this phrase often arises in the context of conversations about living out dream retirement wishes, like traveling the world, writing that book you always dreamed of writing, or owning a second home on the beach – not in the context of end of life planning.

I recently witnessed a client “live” her end of life plan.  While you might not think this to be a very significant or exciting accomplishment, it brings me to tears and smiles (all at the same time) every time I think of it.

Communicating Your Wishes

“Ann” was in her early 90’s and quite a strong character. Although she suffered from a chronic disease, she was relatively active early on in our planning.  She needed to update her estate planning because she had outlived all of her blood relatives and needed to put plans in place for when she knew she might not be able to handle her own affairs.  What she did know was that she would NEVER want to go to a nursing home – she wanted to be cared for her in her own home and we needed to find to a way to make that happen.  Ann put her wishes in writing and communicated those wishes to everyone involved along the way.

Outlining Your Plan

Over the next several years, Ann’s health worsened and she needed to hire a geriatric care manager and caregivers. Toward the end, there were caregivers at her home nearly 24 hours a day with some Hospice care provided. With careful planning, Ann was able to support this with her financial resources. I do not tell you that this was easy. There were many times over the years when Ann became anxious, claimed she was living too long, and wasn’t sure what to do. But she was never willing to compromise on moving from her home.  Ann had specifically outlined how she wanted to live (and how she didn’t want to live – in a nursing home).  On one of her last days, Ann said, “I am happy.” To me, this confirmed that she had carried out her plan for her end of life to her satisfaction.  These are the types of situations that I help my clients with often.

End of Life Reading

Being Mortal by Atul Gawande is a book that I read recently on end of life issues.  It brings to light that most of us do a very poor job of planning for or thinking about our end of life, and we certainly don’t communicate our wishes to our families. We do a lot to plan for our ideal lives, our ideal retirements, so why not end our lives right?  By taking the next steps and planning for the end of our lives, as well, we can make this happen (even though it is not always the most pleasant topic to discuss).  My favorite takeaway from the book is this:

            “All we ask is to be allowed to remain the writers of our own story.  That story is ever changing. Over the course of our lives, we may encounter unimaginable difficulties. Our concerns and desires may shift.  But whatever happens, we want to retain the freedom to shape our lives in ways consistent with our character and loyalties.”  -Atul Gawande

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandra D. Adams, CFP®, and not necessarily those of Raymond James. Raymond James is not affiliated with and does not endorse the opinions of Atul Gawande. You should discuss any legal matters with the appropriate professional. The experience described here may not be representative of any future experience of our clients. Past performance is not indicative of future results.

Aging in America: Financial Planning’s New Frontier

Contributed by: Amanda Toia Amanda Toia

I had the opportunity to attend the Raymond James National Conference in April. It is a time when colleagues from all across the country gather to share ideas, host seminars, and learn new and exciting information to take back to their practices. One of the experts on a panel on aging happened to be our resident gerontology expert, Sandra Adams (she did a fantastic job).  When it comes to degenerative disease that accompany aging like dementia, the statistics are staggering.  

The Impact of Alzheimer’s

There are over five million people affected with some form of dementia in America today.  While there are various diseases that fall under the umbrella of dementia, Alzheimer’s disease is the most common.  In fact, 80% of dementia is related to Alzheimer’s disease. While we are seeing a decline in other diseases across the board (breast and prostate cancers, heart disease/strokes and HIV), Alzheimer’s is rapidly increasing. 

As we begin to age, our mental effective power begins to slow down.  This slow down starts in our early thirties and continues to decline through our aging process.

Every 67 seconds, one person in America is diagnosed
with Alzheimer’s disease.

An alarming 1 in 9 Americans (aged 65+) has this progressive disease (and there are 10,000 people turning the age of 65 each day).  Americans over the age of 85 will have a 1 in 3 chance of living with this form of dementia.

Dementia and Financial Planning

As our aging population is rising, so are some of the issues in financial planning. Statistics show that by 2050, we could have 16 million people living in America with Alzheimer’s disease (Alzheimer’s Association). The expected costs related to the diagnosis, treatment, and societal factors of dementia could be as high as 1.2 trillion in today’s dollars. (Yes, I wrote “trillion.”) Today, average nursing care is running around $75,000 and this is for basic, skilled care – not a lavish facility. With healthcare and long term care costs on the rise, it is necessary for clients and planners to begin the long term care plan early in life taking into account the rising risk factors of dementia as they can strike earlier in life.

Sandra Adams and the other panelists discussed engaging and educating ourselves and our clients on the issues of aging and the effects on the financial planning landscape.  While aging has been a part of the financial planning process for some time, it has become somewhat of a new frontier as the aging population, health care, and long-term care costs increase by leaps and bounds.  Creating a financial plan no longer includes just assets and insurances for your long term goals.  Your intentions for your health care and mode of living beyond retirement are now viewed as appropriate topics to broach with you planner and other professionals alike.  Building a care management team will ease the burden should the time come when your health begins to decline.  Making sure members of your inner circle are aware of your wishes as they relate to treatment options, modes of living, and end of life care are also very helpful. 

Aging and the concerns surrounding it can be a tough subject to tackle as no one really knows what the future will hold.  We are fortunate to have a specialist in our office who keeps us up to date on all matters of aging and we are here to help do the same for you providing financial guidance as you move through your life.

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Amanda Toia and not necessarily those of Raymond James.

Aging Investors: Top 3 Reasons Why Do-It-Yourself May Not Be The Answer

Contributed by: Sandra Adams, CFP® Sandy Adams

The demographic shift is underway.  A whopping 10,000 Americans are turning 65 each day – a trend that will continue for the next 15 years.  And Americans are living longer than ever. At the same time, the chance of being affected by dementia doubles every 5 years after age 60. Even those without dementia have a 30% of being affected by cognitive impairment without dementia by the time they are in their 80s.  And on top of all that, fluid intelligence – our ability to analyze new information and concepts (especially numbers and financial concepts) – begins to decline after our peak years between ages 30 and 40. (American Association of Individual Investors Journal September 2011).  

Particularly in the area of investment management, there are a number of risks to aging investors.  Here are some of the top risks and why it makes sense to consider working with a financial planning partner in the investment area to avoid these risks.

Reasons to Consider Working with a Financial Planner

  1. Fraud/Undue Influence – one of the biggest risk factors as you age is that becoming a primary target of financial frauds and scams.  Someone may want to steal your identity, sell you inappropriate financial products, or family members or others my attempt to steal from you.
  2. Diminished Ability to Make Decisions or Understand Concepts - this occurs when you -- whether due to dementia, cognitive impairment, or normal aging -- begin to struggle with understanding numbers or financial concepts.  Now, more than ever, you need a professional fiduciary to watch out for your financial best interests rather than trying to handle investments on your own.
  3. Primary Decision Maker becomes incapacitated and spouse has no game plan or is caregiver and cannot handle another task – generally, there is one partner in a marriage that primarily handles the investments.  If that person becomes incapacitated and the spouse is not up to speed, and doesn’t know “the plan,” it is important that there is a professional financial planner involved. With a financial planner working as your partner, they can help you keep things running smoothly and make sure that the investments are handled appropriately to meet your long term care and retirement needs. This is especially important if you are also the primary caregiver for your spouse and already dealing with added responsibility.

For many reasons, it is important to work with a financial planner.  Particularly as an aging investor, it is crucial to have a financial planning partner to help protect you and your family against financial predators, to make sure appropriate decisions are made, and to help relieve the burden of yet another responsibility that you might have in the aging process.  Make sure a CERTIFIED FINANCIAL PLANNER® professional is part of your professional planning team. 

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. You should discuss any legal matters with the appropriate professional. Investing involves risk and investors may incur a profit or a loss.

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Health Care Dollars and Aging

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Contributed by: Sandra Adams, CFP® Sandy Adams

I ran across an interesting article recently by Howard Gleckman, author of the book "Caring for our Parents." The article “How we Spend Our Health Care Dollars As We Age” discussed current trends in health care spending for seniors and affirmed for me some of the key issues we discuss with clients regarding health care spending and aging in retirement.

Spending on Health Care Changes with Age

The article referenced recent research by the Employee Benefit Research Institute indicating that out-of-pocket spending for routine health care changes very little after age 65, and remains relatively unchanged even after age 85 for these routine expenses (trips to the doctor or dentist, medications, etc.). That’s mainly because Medicare covers the bulk of those expenses. The story changes dramatically when it comes to very high cost medical procedures/care or long-term support or services. As we age, we are far more likely to need these high cost services (about 27% of those age 65 - 74 had an overnight stay in the hospital during the period of 2010 - 2012, while more than 42% of those 85 and over spent at least one night a hospital during that same period). The key here is this: Medicare is the primary source of health insurance for those over the age of 65. MEDICARE IS NOT LONG TERM CARE INSURANCE.

How to Plan for Potential Health Care Expenses

According to a study by the Kaiser Family Foundation, out-of-pocket costs alone for someone spending two years in a nursing facility can run $24,000 - $67,000. If you do need skilled care for a period of time for either rehabilitation or long term care, the costs can be devastating to your finances. So what do you do to plan ahead for these potential costs?

  1. Discuss options with your financial planner for long term care insurance. There are ways to purchase policies as part of employer groups and associations or individually. There are also new hybrid life/long term care or annuity/long term care policies that may fit well in your overall financial plan.

  2. Discuss options with your financial planner to self-insure the costs for potential health/long term care costs using existing assets. You can earmark specific assets or income streams for those potential future costs in a way that least disrupts your overall financial plan.

  3. Discuss with your financial planner any possible future government benefits that you may be eligible for that might help to cover any future long-term care costs (i.e. Veteran's Aid & Attendance Benefits). Determine if you may be eligible and put the proper financial and legal planning in place for future eligibility when and if needed.

As always, planning now for the future what if's is always better than planning in a crisis. Have a conversation about your future health care and long-term care planning with your financial planner at your upcoming financial review.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandra Adams, CFP ® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Long Term Care Insurance may not be suitable for all investors. Please consult with a licensed financial professional when considering your insurance options.

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Three Reasons to Consider a Family Caregiver Contract

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Contributed by: Sandra Adams, CFP® Sandy Adams

Many family members are drawn into caregiving out of love. Most times, it is the female child that is pulled into the role of caregiver as a parent ages and has increasing needs. The statistics are overwhelming…

  • 66 million people in the U.S. provide unpaid care to a relative or friend.*

  • 70% of caregivers report making adjustments to work schedules, or quit work altogether, to accommodate caregiving responsibilities.  Caregivers may reduce their hours at work or forfeit promotions and benefits.**

  • A 2011 study showed that caregivers lost $303,880 in wages, Social Security benefits, and private pensions over their lifetime as a result of caregiving responsibilities.**

It is important to understand that caregiving and care needs can have serious consequences for the entire family, and that careful planning is important to ensure financial stability for all parties involved. 

When to Officially Hire a Family Member

In many cases, skilled care is needed, and that care needs to be provided by trained and licensed medical professionals.  However, there are other needs (i.e. transportation, housekeeping, etc.) that can be provided by a family member.  In these cases, you can consider officially hiring a family member under a paid family caregiver contract.  A family caregiver contract is a legal employment contract that defines the care and compensation expectations between the aging parent and the family member providing the care.  Here are three reasons for a family to consider using a family caregiver contract:

  1. The family member providing the care (the caregiver) can be receiving financial compensation for providing care, especially when they may have had to reduce or give up entirely their paid employment. The caregiver is provided a chance for continued financial stability.

  2. It can help avoid misunderstandings and bad feelings with other family members about who is providing care and how much money is changing hands.  The agreement can be very specific and can be tied to the aging parent’s overall estate planning.

  3. If the aging parent ever needs to enter a nursing home or needs Medicaid to pay for long term care needs, the agreement can show that payments for the care to the family member were legitimate and were not made in an attempt to “hide” or “gift” funds in order to qualify for Medicaid.

When it comes to planning for aging parents and coordinating the caregiving roles amongst family members, things can get complicated very quickly.  It often comes down to the one who is nearest, not who has the time or the money, that becomes the caregiver.  Making things fair and giving your parent and the sibling(s) who provide care the best chance for financial stability along the way is the best course of action.  Work with your financial planner and a team of experts to come up with a plan for your family that may include an elder law attorney to consider tools like a family caregiver contract.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

*National Alliance for Caregiving and AARP. Caregiving in the U.S., 2009.

**The MetLife Mature Market Institute, MetLife Study of Caregiving Costs to Working Caregivers, June 2011.

The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandra Adams and not necessarily those of Raymond James. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

Three Keys to Successful Aging

 Most clients look forward to retirement as a time of freedom -- a time of fulfilling lifelong dreams of travel, pursuing passions, and spending quality time with family and friends. They work with professional advisors to make sure that they have the financial resources available to fund their retirement goals. Retirement income planning, Social Security planning, and investment planning are all part of the mix. Early in retirement, many of our clients don't pay as much consideration to the aging process.  What can be done to insure that with successful retirement comes successful aging?

At The Center, we work with hundreds of clients at various stages of retirement and aging.

Observing the success stories, we’ve observed these three keys to successful aging.

  1. Positive Mindset/Attitude: Those that age successfully don't see themselves as "old" or "elderly". They don't dwell on the fact that they may begin to slow down or develop health issues. They focus on what they can do, not on what they might not be able to do.
  2. Plan Ahead: Those that age successfully plan ahead for their future retirement and aging. They make sure that legal and financial plans are in place in the case aging slows them down. They think about alternatives for housing, health care and long term care and they talk to their families about their preferences so when/if the time arises, plans are in place. This allows these clients to live in the now, knowing that they have things covered when/if needed.
  3. Take Action: Having a positive attitude and putting together a plan get you a large part of the way towards successful aging. The critical third step is to take action. Clients who age successfully take their positive attitude and use it to stay active, stay healthy and stay engaged. They make plans and put the important pieces in place so that they are ready to go as soon as the need arises -- they work with their financial planner to put together a team (including financial, legal and health care) for their successful aging. AND they make sure that the professional team is engaged with the family members and friends.

While we have often heard from clients that "getting older is no walk in the park," with a positive attitude, proper planning and appropriate actions, aging successfully is possible. Talk to your financial planner about what additional planning you can do to make sure you are one of the success stories.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of RJFS or Raymond James. C14-043035

"The Other Talk"—Expressing Your Plans for Aging

 Remember that all-important rite of passage? Having "the talk" with your kids about the birds and the bees? You thought for weeks...maybe months...about the words you would choose, how you would answer the challenging questions and handle the emotions involved. Now might be the time to experience another rite of passage, and have “the other talk" with your children about your plans for your life as you age.

A Helpful Conversation Starter

Holidays are a time when families gather together from near and far; a rare time when parents and siblings are gathered together to catch up on developments of the past year. Before your holiday gathering, take the time to think about how you might bring up the topic of your life as you get older, and how your family can help to support you. A book recently released by the AARP, titled "The Other Talk: A Guide to Talking with Your Adult Children About the Rest of Your Life," might help you to prepare you for this conversation. When you have “the other talk” you’ll want to communicate your current situation, as well as express your wishes for your future living situation and care.

Steps to Prepare for the Talk

In addition to reading the book, here are a few action steps to take to prepare for "the other talk":

Get your records in order: Click hereto use our Personal Financial Record Keeping Document to document things like your insurance policies, your investment accounts, your estate planning documents, the professionals your work with, etc. In addition, gather information about your doctors, medical conditions and medications.

Prepare the paperwork: Gather copies of your current estate planning documents, and consider providing copies to your children.

Cover the bases: Use our Future Care Checklist to determine what topics you might need to discuss and plan for that your haven't already thought of.

If you feel that it might be easier or more productive to hold a family meeting with a facilitator, contact your financial planner to schedule this meeting. Having "the other talk," whether on your own at holiday time or facilitated by your financial planner, will help you address the important issues about your aging in advance of a crisis, allowing you the time and the space to enjoy your life and your family.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served. C14-040146

The 3 Biggest Risks to Caregivers

 November is National Caregiver’s Month.  According to the Caregiver Action Network (CAN), there are over 90 million family caregivers in the United States; that is about 39% of all adult Americans that are caring for a loved one who is sick or disabled.  Being a caregiver is a difficult job – one that carries many risks.

Caregivers sacrifice of themselves on every level in an effort to care for those they love, but often at a great cost to their health, well-being and financial situation. 

Biggest Risks to Caregivers:

(1)   Risk to Health:  According to a 1999 study in the Journal of the American Medical Association, highly strained family caregivers are at risk for premature mortality (Schulz & Beach, 1999). Other studies indicate that caregivers are at risk for increased mortality, coronary heart disease and stroke, particularly under conditions of high strain.  Take Action:  Make sure you are eating right, exercising and addressing your own medical conditions.  This may mean asking other friends, family or professional caregivers for assistance.

(2)   Risk to Well-Being:  Mental health and balanced life are at risk when caregivers focus more upon their loved ones than themselves.  Unfortunately, not taking the time to rest and rejuvenate – to take a mental break and enjoy one’s own interests – can cause major mental, emotional and medical stress to the caregiver, making them unavailable to care for their loved ones.  Take Action:  Seek out caregiver support groups in your local community and/or with condition-specific organizations, talk to friends and family to seek support, and make sure you take time to do things to care for you (seek spiritual support, write/blog about your journey, etc.).

(3)   Risk to Finances:  According to the National Alliance for Caregiving and Evercare, nearly half of working caregivers report that caregiving expenses have depleted most – or even all – of their savings.  Individuals are sacrificing their own financial security and future retirement in their caregiving role.  Take Action:  Seek the services of professionals to form a strategy for paying for your loved one’s care, as well as planning your own current and future financial needs.  Your professional team should include a CERTIFIED FINANCIAL PLANNER™, a CPA and an Estate Planning Attorney (possibly one who specializes in Elder Law). 

If you or someone you know is a caregiver, taking action to address these 3 risks is necessary to maintain health, sanity and well-being.  If you have questions regarding resources for caregivers or professional resources for elder care planning, please contact me.

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Consult a legal professional for any legal matters. C14-038184

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