With advances in healthcare, people are living longer. However, that often means that men and women in their forties and fifties take on the responsibility of caring for their parents. You want to help, of course, even if it means finding an assisted living facility that gives your parents the freedom they crave with the medical attention they need.
Caring for aging parents can be expensive, however, and that can put a damper on your retirement planning and even sending your kids to college. When it all hits at once, you may feel as though you’ve got nothing left to give.
With some proper planning, however, you can provide for your parents and your kids, while also setting aside a nest egg to provide for yourself later in life. Here are some tips to get you through.
Start a Conversation
It’s hard to talk about money with your parents, especially because they were the providers for you for so long. It’s an important conversation to have, because you may find they’ve also prepared for this eventuality. If you have brothers and sisters, older nieces and nephews, and even your own adult children, you may find there is more help available than you expected.
You can also bring in an objective financial planner to help discuss the current and future financial contributions everyone will make. It’s a great way to get everyone on the same page, and also help other supporters plan for their own futures at the same time.
Discuss Your Limits
You’ll want to give everything you can, just like your parents did for you, but that’s not always possible. You have other responsibilities, including your own family and future. What you plan to spend on caring for your parents shouldn’t affect your emergency savings or your retirement fund.
Remember this: You can’t help anyone if you deplete your own finances while trying to do some good. You won’t even be able to help yourself.
Start a New Savings Fund
A separate account for healthcare and support for your parents will help you keep everything in its proper place. Determine how much you can contribute to this fund early, just as you have with your retirement fund at work. Even if it’s not a lot at first, every little bit helps. And over time, you’ll have saved enough to make a real difference for your parents.
You may even consider an investment account for your savings, if you plan ahead early. This gives you time to turn a little money into more without a lot of thought or stress. A good financial planner will help you locate funds that promise adequate returns.
Most importantly, work with a professional financial planner. The Hopman Group is always here to help you with all your financial needs, goals, and dreams. We’ll walk you through the process so you can provide for your parents when the time is right. Just give us a call.