| For the last 20 years, I have helped clients plan for | | | | (umbrella policies) |
| their "golden years", including how they will address | | | | 2. Copy of mortgage and home equity loan |
| the issues of aging and remaining independent. And | | | | statements |
| now I am personally experiencing it myself; I am the | | | | 3. Copy of auto title, loan/lease, and insurance |
| Designated Daughter with my own parents. Because | | | | documents |
| my parents and I had "the important conversations" | | | | 4. Copy of statements for gas, electric, water, |
| and did the proper planning, I was prepared when I | | | | waste management, telephones, etc. |
| received that 'Call in the Night'. Part of creating the | | | | 5. Home maintenance file to include repair receipts, |
| life of your dreams is making sure you address all the | | | | phone number of repairmen, warrantees, and |
| "what ifs" in your life. Skipping this step could create | | | | appliance insurance. |
| unpleasant complications that might be avoided. Our | | | | Step Two ~ Discovery |
| parents and loved ones are living longer and we need | | | | Your documentation is organized. Breathe a sigh of |
| to know how this may affect our lives and be | | | | relief! Next, you'll need to have a series of important |
| prepared with a plan. Take a look at these statistics:o | | | | conversations with your loved one and other family |
| When Social Security, Medicare & Medicaid were | | | | members including:o What do they think they want |
| designed, life expectancy was 63.o Our fastest | | | | for their long term care?o What are their needs as |
| growing population is age 85 plus and 50% may have | | | | they are aging and who can provide it?o How do |
| some form of Alzheimer's.o By 2030, 70 million people | | | | they want to handle their money and property as |
| in the US, or 1-in-5 people, will be age 65.o Another 1 | | | | their lifestyle changes?o What kind of legacy do they |
| million people will be 100 years old.o The need for | | | | want to create for themselves? |
| healthcare and related services is exploding!* | | | | All of this may take a number of conversations. Try |
| According to USA Today:o 60% of US caregivers are | | | | asking if you can talk about these things in general |
| femaleo 66% are married or living with a partnero 45 | | | | terms because you are doing your own future |
| is the average age of US caregiverso 77 is the | | | | planning for college savings or retirement. Ask for |
| average age of the care recipiento 41% of | | | | their help to assess their situation and welcome their |
| caregivers have children under the age of 18 at | | | | input on solutions. Role play a bit... Try talking about |
| homeo 52% of caregivers are employed full time | | | | how they would feel if they had to make these |
| Learn how to be prepared, how to talk to your | | | | decisions for you instead? Ask what their friends are |
| parents or loved ones, what you and they should do | | | | doing about these types of things? Patience is key |
| to make sure your lives continue to run smoothly and | | | | here! The most important thing is to really take a |
| how to avoid costly mistakes. | | | | look with them at their values, lifestyle and spiritual |
| Step One ~ Get Organized! | | | | picture as they ultimately have to "own" the |
| You'll need to gather together the following: One filing | | | | solutions. |
| cabinet, complete with hanging file and manila folders; | | | | Next, you're ready to select the individuals you want |
| a copy of all important documents; a large three-ring | | | | on the caregiving team. Include any that apply: family |
| binder with big tab dividers; and a colored marker. | | | | members, doctors, home care specialist, attorney, |
| Use the binder to store copies of important | | | | certified elder law specialists, insurance agents, |
| documents. Label the document title on the tab | | | | brokers, CPA, caregivers, certified financial planner, |
| divider. This will come in handy should you need to | | | | therapist, etc. Many of these professionals are |
| transport documents. Using your marker, write on | | | | trained to help families deal with health, financial, and |
| the back of each document where the original is | | | | social issues in a holistic way. |
| stored (i.e. Will stored in safe deposit box and son | | | | Step Three ~ Create a Financial Plan |
| John has the key.) Have a section on beneficiaries | | | | Sit down with a certified financial planner and develop |
| that lists all documents with appointed beneficiaries. | | | | a financial plan that addresses the following: |
| Always keep this section current. | | | | Financial Position:o Create a cash flow statement |
| Next, organize your file cabinet. If you don't want to | | | | which breaks down income and expenses.o |
| store original documents in your file cabinet, note the | | | | Determine your net worth by listing assets and |
| original's location in the appropriate file. Create the | | | | liabilities. |
| following titles for your hanging files and store items | | | | Income Taxes:o Review tax situation for capital gains |
| under each category in labeled manila folders. | | | | losses with real estate or stocks.o Discuss inherited |
| Important Information | | | | IRA status vs. pension /profit sharing plans. |
| 1. Location of safe deposit box and key | | | | Investments:o Analyze investments for quality, |
| 2. Passwords for debit card, online accounts, | | | | safety, income needs, tax situation, etc.o Are |
| computer, and voicemail | | | | investments manageable, properly diversified, or all |
| 3. Armed forces documents | | | | over the place? |
| 4. Birth and marriage certificates | | | | Retirement:o Establish amount of assets necessary |
| 5. Names and phone numbers of your attorney, CPA, | | | | to meet your lifetime income needs.o Project |
| financial planner, broker, and insurance agents | | | | retirement income needs in several situations (i.e. |
| 6. Copy of tax returns and winter/summer tax | | | | home care/assisted living, utilizing long-term care |
| assessments | | | | insurance benefits if applicable. |
| 7. Copy of Social Security Estimate Statement | | | | Estate:o Review documents and analyze current |
| Legal Planning | | | | estate plan.o Verify beneficiaries on life insurance, |
| 1. Copy of will and trusts | | | | annuities, retirement plans, & 401Ko Decide what |
| 2. Copy of life and unemployment insurance policies | | | | you need and desire for financial independence. How |
| 3. Durable Power of Attorney (DPOA) documents | | | | much will you leave for a family legacy? How will you |
| 4. Prepaid funeral and burial arrangements/plan for | | | | allocate your social legacy regarding gift and tax? |
| pet relocation and expenses. | | | | Protection:o Assess cash flow projections and |
| Banking/Investments | | | | alternate scenarios regarding disability, long-term care, |
| 1. Copy of each credit card with contact phone | | | | and premature death. |
| number | | | | Step Four ~ Meet with Your Team and Create a Plan |
| 2. Divide out by financial institution a copy of bank | | | | Now that you've got everything in place, sit down |
| statements, brokerage accounts, annuities, IRA's, | | | | with your caregiving team members and develop a |
| stock/bond certificates, and dividend reinvestment | | | | plan of action that satisfies your loved ones' goals, |
| plans (DRIP) | | | | values, and objectives. The final product should |
| 3. Copy of retirement plans and investment real | | | | enable you all to maintain your dignity, lifestyle, and |
| estate documents | | | | assets. In addition, the plan should be clear, concise, |
| 4. Copy of "Survivor's" Pension Benefit (what will | | | | easy to manage, and tax efficient. It should also |
| surviving spouse receive after the retiree dies?) | | | | acknowledge the needs of whoever becomes the |
| Medical | | | | main caregiver. |
| 1. Name and phone numbers of physicians, dentist, | | | | The benefits of early planning are numerous, |
| and pharmacy (list prescriptions) | | | | including:o clarifying your loved ones wisheso |
| 2. Copy of medical insurance card and benefits | | | | identifying the best possible resourceso minimizing |
| guidebook | | | | confusion and stress during times of crisiso increasing |
| 3. Long term care and disability insurance policies | | | | overall peace of mind |
| 4. Patient Advocate Designation document. Give | | | | The end result...everyone involved is able to sleep at |
| primary care physician a copy | | | | night knowing all concerns have been addressed and |
| 5. Copy of Medicare card and account number | | | | that a team and a plan is in place to accommodate all |
| Household | | | | those "what ifs". |
| 1. Copy of home deed, homeowners insurance | | | | |