Caring for your aging parent can feel overwhelming, from the emotional crisis of sudden illness to the legal crisis of sudden guardianship. A common wish is to be able to provide the same level of love and support to our parents as they so generously offered to us as children. Understanding the potential stress on your finances and savings, and knowing how to cope financially, can help ease this confusing life change. Lise Andreana is a frequent guest speaker at financial conferences and a go-to source for financial reporters nationally. She is relied upon for her 18 years of financial planning expertise combined with her unique designation as a Certified Professional Consultant on Aging. This, her latest financial planning title, covers the key decisions that every adult child of an aging parent must make in order to provide loving support to the people who matter the most.
Introduction xv1 Preparing to Be a Caregiver 11. The Different Stages of the Elderly 32. Why Do We Fear Aging? 53. How Do You Know Your Loved One Needs Help? 64. Are You Ready to Be a Caregiver? 85. The Seven-Step Action Plan for Caregivers 96. Benefits and Tax Supports Available to Caregivers 127. Caregiving Will Change Your Life 13vi Financial Care for Your Aging Parent2 Taking Care of Yourself First:Preparing for Your Own Retirement 151. Is It Time for You to Retire? 161.1 Tips for 50-year olds 161.2 Tips for 60-year olds 182. Five Retirement Lifestyle Budgets 192.1 Conservative 202.2 Comfortable 202.3 Above average 202.4 Luxury 202.5 Prestige 203 Asking Your Parents the Right Questions 271. The Five Myths of Aging 282. Opening the Conversation with Your Loved One 282.1 Advantages of having the money talk withyour parents 323. Discussing Important Documents withYour Loved One 353.1 Power of attorney for personal care 353.2 Power of attorney for property 363.3 Will 443.4 Living will 443.5 Advance directive 454. The Five Wishes 465. Organize 464 A Financial Plan for Your Parents 491. Step 1: Establish Goals 502. Step 2: Gather Information 502.1 Net worth statement 512.2 Cash flow statement 512.3 Budgeting 512.4 Look at your parents' investments 58Contents vii3. Step 3: Review Possible Strategies 584. Step 4: Create the Action Plan 595. Step 5: Monitor, Review, and Update theAction Plan Regularly 595 Maximizing Every Dollar 651. Budget Tips for Seniors 661.1 Seniors' discounts 671.2 Coverage and programs for seniors 671.3 Government pensions 681.4 Canadian tax credits for seniors 692. Joint Property and Accounts 726 Debt and the Elderly 751. Reverse Mortgages 772. Real Estate Ownership 793. Leveraged Investments 804. Taking Action 825. Protecting Your Parents from Fraud andFinancial Abuse 837 Investing Your Parents' Savings 871. Control 881.1 What is in your control? 882. Risk 913. The Rule of 100 934. Products Suitable for Retirees 954.1 Guaranteed Investment Certificates (GIC) 954.2 Bonds 964.3 Life annuities 964.4 Mutual funds 964.5 Segregated funds 964.6 Variable annuities 974.7 Dividends 974.8 Exchange traded fund (ETF) 98viii Financial Care for Your Aging Parent5. Sample Portfolios 985.1 Pre-retiree's portfolio 985.2 Early retiree's portfolio 995.3 Late retiree's portfolio 1008 Insurance for Seniors 1031. Reasons to Purchase Life Insurance 1041.1 Expenses 1041.2 Cash flow and estate preservation 1041.3 Pension maximization 1041.4 Estate planning 1061.5 Charitable bequest 1061.6 The family cottage and balancingbequeathed assets 1072. Types of Insurance 1082.1 Term life insurance 1082.2 Permanent insurance 1092.3 Long-term care insurance 1092.4 Critical illness insurance 1109 Helping Aging Parents Transition to a Life ofIncreased Dependence 1131. When Is It Time to Get Help? 1131.1 Signs your parents need help 1141.2 I'm not ready yet 1162. Preparing for the Move 1172.1 Choose wisely to reduce stress 1182.2 Reduce furniture 1182.3 Think about storage 1182.4 Consider safety and convenience 1192.5 Prepare to say goodbye to many things 1192.6 Show respect for your parent's opinionsand feelings 1192.7 Have valuables appraised 120Contents ix3. Moving to a Smaller Home 1203.1 Granny suites 1204. United States Subsidized Housing for Seniors 1215. Canadian Rent Geared to Income 1216. Home Care 1227. Retirement Residences 1238. Long-Term Care Facilities 1259. Palliative Care 12610. Do Your Homework 12810 Selling the Family Home 1351. Step 1: Prepare 1352. Step 2: Select a Realtor 13611 Succeed with Good Advice 1411. Accountant 1422. Lawyer 1423. Financial Planner 1423.1 The benefits of working with a financial planner 1434. Choosing Your Team of Advisors 1475. Regular Checkups 148Conclusion 153Download Kit 157Samples1. Conservative Lifestyle Budget 212. Comfortable Lifestyle Budget 223. Above-Average Lifestyle Budget 234. Luxury Lifestyle Budget 245. Prestige Lifestyle Budget 256. The Care Years Continuum 297. Net Worth Statement 558. Cash Flow Statement 56x Financial Care for Your Aging Parent9. Tax Impact 7210. Investment Products 9411. Comparison of an After-Tax Income of a Back-to Back 105Annuity and Life Insurance PolicyWorksheets1. Determine Your Readiness to be a Caregiver 102. Retirement Readiness 193. Questions to Ask Your Parents 334. Five Wishes 475. Financial Planning Preparation 526. Reviewing Documents: Consider, Investigate, and Act 607. Out-of-Pocket Expense Tracker 648. Gathering Debt Information 839. Building Your Parents' Self-Awareness That TheyNeed Help 11710. Living at Home versus Retirement Residence 12711. Comparing Retirement Homes 12912. Questions to Ask a Realtor 13913. What Type of Advisor Does Your Parent Need? 14614. Questions to Ask Your Advisors 15015. Annual Meeting Questions for the Advisor 151
