With the population of older Americans expected to double in the coming decades, it’s important to discuss financial planning for future care. While there is no certainty in what may happen in life, it pays to be prepared. This is especially true for people who feel like they may be called upon to financially support their parents.
Begin by opening a conversation about this topic. Discussing the future is the first step towards planning for it. During this time, you should talk about getting estate paperwork in order. These would include wills, financial power of attorney forms, and other various legal papers that can grant descendants access to their loved one’s assets should the time come they are no longer able to manage them.
Talking to a financial advisor can also be a good idea. They may be able to come up with ways to save or invest to build up a financial portfolio for retirement.
Budget for senior care. Talk about what kinds of care might be needed in the future and start budgeting and finding sources of income to help fund them. The advice of a financial planner would probably help with this.
This can be a hard conversation for people to have. Ideally, we would all like to think that our loved ones will be able to support themselves financially in older age, but that is not always how life works out. Discussing and planning for potential bumps in the road can help make you better prepared for them.