IN Bethel Park Summer 2017 | Page 29
INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
Supporting Aging Parents with Their Finances
M
y little guy, Tucker, and I were watching “Doc McStuffins” and
eating cookies. Doc McStuffins was taking care of her sick
grandmother by making chicken soup. I used the television
show to explain to Tucker that older people need the help of their kids
and grandkids. He told me, “Don’t worry, Dad, when you get old I’ll
take care of you.” I chuckled, went to my desk and began this article.
Keeping track of finances takes time, attention and energy at any
age. In the case of older adults, health challenges such as memory
loss can make it difficult to manage their financial obligations as well
as they did in the past. If you’re the son or daughter of aging parents,
here are a few items to keep in mind that can help protect your
parents from financial missteps as they grow older.
LOOKING OUT FOR YOUR PARENTS
For many seniors, signs of memory loss or dementia may
first become apparent when they start to lose track of financial
responsibilities. These signs could include unusual spending
patterns, failing to remember which bills were paid, or incurring
uncharacteristic late or overdraft fees. Unfortunately, seniors are far
more vulnerable to financial scams as well. Savvy swindlers routinely
target older adults who may not be as quick to discern fraud in the
form of phony phone calls, letters, emails or texts.
If you notice that Mom or Dad is struggling to stay on top of
finances, approach the situation delicately. People experiencing
memory loss may not want to admit they’re having difficulties, while
other family members may be in denial about Mom or Dad needing
help. Start the conversation by offering a helping hand. Older adults
often want to maintain their independence, so keep that in mind as
you start to get involved.
CREATING A SUPPORT PLAN
Ideally, it’s best to get Mom and Dad involved in creating a financial
plan while they’re able to communicate their wishes. While this isn’t
always possible, any preparations you can do before the situation is
critical can help you feel better about their financial affairs.
Start by reviewing your parents’ financial situation, determining all
their assets and liabilities. If they are working with a financial advisor,
invite that professional to the meeting. Work together on a strategy
to make sure they are able to cover current expenses and prepare for
future ones. The following checklist can help you get started:
1. Designate someone who is committed to the best interest
of your parent(s) to take the lead on financial matters. While
many family members may want to be involved in decisions
affecting a parent with memory issues, consider choosing one
person as the financial contact. This person should make sure bills
are paid on time, taxes are completed and keep track of Mom
or Dad’s overall finances, looping in other family members as
necessary. Meet with your attorney to discuss if the designated
person should seek legal financial responsibility as well, by
becoming a “power of attorney.”
2. Ensure that each asset is properly titled and has a beneficiary
that reflects your parent’s wishes. Suggest a meeting with an
estate attorney if you think your parent needs to set up or update
a will, health care proxy or other estate planning documents.
3. Establish automatic bill pay where you can. Suggest that your
mom or dad set up his or her account to receive emails when
bills are due or paid so there’s a paper trail to follow in case of
confusion.
4. Create a retirement income strategy – or document your
parents’ income if they’re already retired – so that it’s clear
what their sources of income are and how they will pay for
caregiving expenses. Sources of income may include Social
Security, pensions, retirement accounts, annuities or other
investments, while their life, health, long-term care and disability
insurance policies may provide important coverage to offset
expenses. Caregiving costs can be significant, particularly if a
higher level of care is needed. Take the time now to explore
options and costs for in-home and facility care, and make sure
you understand how your parent feels about the various options.
5. If your parent(s) are still fairly independent financially,
remind them about the prevalence of money-related scams.
Demonstrate how your parents can protect themselves against
fraud.
If you are concerned about your parents’ memory issues, try to find
some time to lay out a caregiving and financial plan of action while
your parents are still able to be part of the conversation. Consulting
with a financial advisor or an attorney familiar with elder law issues
may help get the discussion started.
This Industry Insight was written by Jonathan D. Martin.
Jonathan D. Martin is a Financial Advisor with Ameriprise Financial Services, Inc.
in Bethel Park. He offers financial planning and asset management strategies.
Contact Jonathan’s office at 412.831.6240 ext. 202, located at 88 Fort Couch
Road, Suite 210, Pittsburgh, PA 15241. He is licensed/registered to do business
with U.S. residents only in the states of PA, OH, WV, AZ, CA, FL, IL, IN, NC, NJ,
SC and VA.
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice.
Consumers should consult with their tax advisor or attorney regarding their specific
situation.
Investment advisory products and services are made available through Ameriprise
Financial Services, Inc., a registered investment adviser.
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© 2016 Ameriprise Financial, Inc. All rights reserved.
Take charge of your financial future.
Since 1894 Ameriprise Financial has helped millions of Americans feel more
confident about their financial future. As an Ameriprise financial advisor,
I remain true to our vision of always putting clients first. Discover the
one-to-one attention you deserve, call me today at 412.831.6240 ext 202.
Jonathan D. Martin
Financial Advisor
88 Fort Couch Rd, Suite 210
Pittsburgh, PA 15241
412.831.6240 ext. 202
[email protected]
ameripriseadvisors.com/
jonathan.d.martin
Ameriprise Financial Services, Inc. Member FINRA and SIPC.
© 2016 Ameriprise Financial, Inc. All rights reserved. (8/16)
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