The Financial Side of Being a Caregiver
- Author Katie Braun
- Published May 28, 2016
- Word count 574
By Katie Braun, Financial Advisor, Ameriprise Financial
Caring for a family member is complex. While deeply meaningful, it can be emotionally taxing and presents unexpected challenges, often financial ones.
If you foresee stepping into a caregiving role, it’s a good idea to plan a financial strategy today, before it becomes an added stressor. Here are some questions to help you get started:
What do you know about your loved one’s financial situation?
Knowing the particulars of your loved one’s disability, life and health insurance policies, savings and financial obligations can make it easier to step in on a moment’s notice. Obtain contact information for the financial professionals your loved one works with so you know where to go if you have questions.
What is your strategy to pay caregiving expenses?
First, think about the bills and expenses your loved one is currently paying that you may need to make on his or her behalf. Encourage your loved one to set up automatic bill pay, or to add you as a second signer on a bank account to make handling expenses easier. Next, consider potential expenses you might incur in your caregiving role, such as out-of-pocket medical care or home improvements needed to accommodate your loved one.
What is the financial impact if you need to take time off from work?
If you are employed, you may be covered by the Family Medical Leave Act (FMLA). Under this federally-mandated program, eligible employees can take up to 12 weeks of unpaid leave to care for an immediate family member while health benefits continue. Some companies allow employees to stockpile sick days and vacation days; if you can use this kind of accrued time off, you’ll still get paid. Liquid savings of your own can help cover expenses if you need to take unpaid leave from work.
Are your loved one’s assets legally protected?
Being proactive from a legal standpoint can help ensure your loved one’s wishes are known, and assets are protected during a prolonged illness. Power of attorney, or a durable power of attorney, gives a trusted party the ability to make important decisions about finances and health care. Another helpful legal document is an advanced directive, which outlines specifics for medical and end-of-life care. When these documents are in place, you have clear guidance on how to manage your family member’s affairs.
Whom would you turn to for support?
Talk with other family members about their willingness to help, and how responsibilities might be divided. Research social service and community organizations in your area to see what support is available for caregivers.
How will you balance your financial goals with caregiving expenses?
Caregiving often entails more immediate expenses that can make it challenging to focus on saving for your child’s college education or your own retirement. Developing a plan to continue saving toward long-term goals can help reduce your financial stress down the road. Financial planning, under the guidance of a financial advisor, can help you anticipate and prepare for caregiving and other future events that may impact your finances.
Ameriprise Financial 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.
Katie Braun is a Financial Advisor with Ameriprise Financial Services, Inc. in Brookfield, Wis. She specializes in fee-based financial planning and asset management strategies and has been in practice for 16 years. To contact her, please call (262) 785-1010, visit her office at 16650 W. Bluemound Road, Suite 800, or go to http://www.ameripriseadvisors.com/katie.braun/.Article source: http://articlebiz.com
There are no posted comments.
- Goodbye Momma...
- Insurance Industry inflicts more pain on COVID affected Care Homes
- Knoxville Funeral Services: Five Benefits of Pre-Planning Services
- The Gentry Griffey Knoxville Funeral Home Understands How You Feel.
- Programs and Services for the Elderly in California
- How To Spend This Summer With Your Elderly Parents
- Cost Of Assisted Living in your State
- Signs of Nursing Home Neglect and Elder Abuse
- A Senior Living Neighborhood Can Be Life Transforming
- Management of Hypertension in Seniors | Best Practices
- How Utilizing A Hoyer Lift Is Actually Better For Patient Care
- Medical Alert Systems and In Home Care Can Combat Rising Healthcare Costs
- Sound Advice On How To Stay Young
- Medical Alert Systems and Signs Your Aging Parents Need Help: What you Need to Know
- Why Caregivers and Doctors Recommend Medical Alert Systems
- Medical Alert: Enabling Seniors to Connect Instantly to Caregivers
- How to Choose the Right Home Care for Your Loved One in Kansas City?
- Wood shower benches: Top Tips to Care for them
- The Reasons Why You Should Consider Making a Difference as a Hospice Volunteer
- The 64-dollar Question for Seniors: Is Social Networking Good for You?
- Personal Care in Kansas City - How It's Done
- Caregiving – A Stressful Calling
- Hospice Services - Understanding What to Look For
- Non-medical Ways Medical Alarm Systems Can Save Your Life
- Elements of an Easy, Safe Modern Living: Medical Alarm and Other Advanced Products for Seniors
- Home Care in Overland Park - Essential Attributes of a Good Caregiver
- Creative Senior Adults Busily Painting Masterpieces
- Integrating a Senior Medical Alert System with Exercises to Help Prevent Falls
- Senior Medical Alert Versus Expensive Senior Care Housing Costs