Most of us spend our entire working years preparing for the future and retirement. We also have parents who have made the same preparations. We have all worked very hard to be able to enjoy our lives after we retire. Financial safety should be at the forefront of our minds as this time approaches.
Currently over 15% of the United States population is 65 years of age or older. Many of us are left wondering how we can protect our aging parents financials.
Make a Plan for Financial Safety
What many people don’t think about, is that they must make sure that their own finances are secured before they can take on their parents financial safety. Taking care of an elderly parent, particularly ones with declining health, can be time consuming and costly.
The first step that must be taken, and it is never a comfortable conversation, is how they want their finances handled if there is an unexpected long term illness or mental impairment. For obvious reasons, this must take place while your elderly loved one is of sound mind.
There are some vital documents that everyone should have. Make sure that your elderly loved one has each of the following documents prepared:
- Power of Attorney – They need to have someone chosen who can take care of their finances if they are no longer able to do so themselves.
- Health Care Proxy – This is a legal document that ascribes an individual, or individuals, who can make life or death decisions if your elderly loved one cannot do so themselves.
- Will or Living Trust- Legal document that describes what will happen with their assets once they pass away.
Always keep these documents up to date, and know how and where to obtain them.
Scams and Frauds
Familiarize yourself with all of the latest scams so that you can educate your elderly parent. Seniors are especially vulnerable to fraud. Below are a few tips to keep them safe:
- Always use direct deposit for checks, social security, disability or any other payments
- Never give out financial information to strangers or even neighbors
- Never give out account information over the phone unless you are the one who placed the call
- Have your parent, or yourself, check their bank account regularly to look for any suspicious behavior
- Have your parent check their credit score regularly
- Keep a list of all accounts and financial institutions
- Always hang up the phone if you suspect anything suspicious
- Get added to the Do Not Call registry
Health Care Costs
If there is one cost that will quickly drain a retirement account or nest egg, it is health care. This is especially true with long term care. 1 in 1.4 people over the age of 65 will need long term care in their lifetime. Your loved one’s financial safety could be at serious risk if this type of care is needed.
There are basically three ways that long term care is paid for:
- Government – Medicare (short term nursing home care for rehabilitative reasons) and Medicaid (requires spend-down of assets)
- Self Pay
- Long Term Care Insurance
The average cost of a long term care private room in the U.S. is $7,500 per month or $90,000 per year. You can see how devastating this could be if it is not planned for. You and your elderly parent need to ask yourselves, how will you pay for this if needed?
Focus Wealth Group, LLC in St. George, Utah can assist you and your loved one with a long-term care plan. For introductory information please download their FREE ebook here, or call Barry Brooksby at (435) 656-3882.
How Golden Heart Senior Care Southern Utah can help: We are here to assist with you with taking care of your elderly loved one with in-home care. We can advocate your rights with health care providers and insurance providers. Any caregiver who enters your home goes through our process of background checks, drug testing, interviews, and references. Reference our respite care page to learn about short term care. We are also licensed and bonded. Please refer to our Senior Advocacy page for more information. If you would like Golden Heart Senior Care Southern Utah to advocate for you and your loved one, please call us at (435) 669-3704.
The Golden Heart Promise: We will provide excellent care to our valued Clients, advocate for their rights, and personify the compassion of a Golden Heart. Golden Heart Senior Care Southern Utah, St. George, Cedar City would be happy to assist you or your loved one with in-home care. Please contact us today at (435) 669-3704 for more information on how we can help.
You’re in Caring Hands With Golden Heart Senior Care Southern Utah.