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Category: Retirement Planning

Caring for Aging Parents

Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 60 is growing. The United Nations estimates that by 2050 the number of people aged 60 and older will have more than doubled.¹ As our nation ages, many Americans are turning their attention to caring for aging parents.

For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.

When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.

Cover the Basics

Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:

  • Primary physician
  • Specialists
  • Medications and supplements
  • Allergies to medication

It is also important to know the location of medical and estate management paperwork, including:

  • Medicare card
  • Insurance information
  • Durable power of attorney for healthcare²
  • Will, living will, trusts and other documents²

Be Thorough

Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.

Keep the Lines of Communication Open

This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.

Fast Fact: The state with the oldest population is Florida, with 19.06% of its population over the age of 65. Maine is second, with 18.24%. 
Source: WorldAtlas.com, March 8, 2018

Don’t Procrastinate

The earlier you can begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.

Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.

To learn more about CapSouth Wealth Management and the services we provide, contact us at 800.929.1001 or visit our website at www.CapSouthWM.com https://capsouthwm.com/services/financial-estate-planning/

  1. United Nations Department of Economic and Social Affairs, 2017
  2. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2020 FMG Suite.

CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent registered Investment Advisory firm.  CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.

The Cost of Medical Care

When uninsured people end up in the hospital, “sticker shock” can follow. Just a quick look at the current medical care prices for procedures can be sobering.

How much does a CT scan cost? Between $250 to $1,500, depending on where it is performed. Need a stent in your heart? The average cost of that delicate procedure is now close to $20,000. How about a knee replacement? That surgery may run anywhere from $15,000 to $35,000.1,2

Are these the only costs associated with a hospital or outpatient visit? Not quite. Think of the cost of the room, the medications, the anesthesia. Fortunately, many Americans have health coverage, so they only have to pay a fraction of the expenses linked to these and other procedures. Those without health coverage may find themselves in financial pain.

These days, you may take a big financial risk if you go without health insurance. Just one accident or one surprise trip to the hospital, and you may be left with a debt rivaling an auto loan.

If you need to pay for your own health coverage, the cost may be well worth it. Imagining that you can go without it for the next five or ten years may not be realistic, even if you are a millennial or a member of Generation Z just leaving college. You might have a five-figure debt already; could you handle another one, perhaps, with little or no warning?

Just how much does it cost to self-insure? Well, here is one estimate. According to the Kaiser Family Foundation (KFF), a hypothetical 40-year-old non-smoker making $30,000 per year is projected to pay an average of $492 per month for a benchmark health insurance plan for 2020. That works out to $5,904 for a year. The KFF reports, though, that the monthly cost could fall to as little as $199 with the help of a premium subsidy via federal or state government. This year, the mean monthly cost of a Silver plan after a premium subsidy is $207.3

Here is another projection. Looking at the 38 states in which residents buy coverage through Healthcare.gov, Investopedia calculates the average monthly cost of a benchmark plan at $413 for a hypothetical healthy 27-year-old, a price which could be lowered once subsidies are applied.4

You can choose to put off paying a few thousand dollars a year for health insurance, but in doing so, you are also choosing to assume a great financial risk. A major medical procedure can cost as much as a new car or college education.

Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your financial or health care professional before modifying your insurance strategy.

If you are uninsured, take some time to look at your choices with someone who knows the insurance market. Do it today, as you never know what tomorrow could bring.

To further discuss your healthcare options and how to prepare for your future, contact CapSouth at 800.929.1001 or visit our website at www.capsouthwm.com https://capsouthwm.com/services/financial-estate-planning/

1. Vox, December 17, 2019
2. HealthGrades.com, August 28, 2019
3. HealthMarkets.com, March 30, 2020
4. Investopedia, October 28, 2019

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2019 FMG Suite.

CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent registered Investment Advisory firm.  CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences.

Healthcare Costs in Retirement

In a 2020 survey, 36% of all workers reported they were either “not too” or “not at all” confident that they would have enough money to pay for their medical expenses in retirement. Regardless of your confidence, however, being aware of potential health care costs during retirement may allow you to understand what you can pay for and what you can’t.1

Health-Care Breakdown

Faucet

A retired household faces three types of health care expenses.

  1. The premiums for Medicare Part B (which covers physician and outpatient services) and Part D (which covers drug-related expenses). Typically, Part B and Part D are taken out of a person’s Social Security check before it is mailed, so the premium cost is often overlooked by retirement-minded individuals.
  2. Copayments related to Medicare-covered services that are not paid by Medicare Supplement Insurance plans (also known as “Medigap”) or other health insurance.
  3. Costs associated with dental care, eyeglasses, and hearing aids – which are typically not covered by Medicare or other insurance programs.

It All Adds Up

According to a HealthView Services study a 65-year-old healthy couple (male living to age 87; female, age 89), can expect their lifetime health care expenses to add up to around $606,337.2

Should you expect to pay this amount? Possibly. Seeing the results of one study may help you make some critical decisions when creating a strategy for retirement. Without a solid approach, health care expenses may add up quickly and alter your retirement spending.

Prepared for the Future?

Workers were asked how much they have saved and invested for retirement – excluding their residence and defined benefit plans.

Chart

Source Employee Benefit Research Institute, 2020

To learn more about CapSouth Wealth Management contact our office at 900.929.1001 or visit our website at www.capsouthwm.com

CapSouth Wealth Management – Dothan, AL, McDonough, Ga, Charlotte, NC

1. Employee Benefit Research Institute, 2020
2. HealthView Services, 2019

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2020 FMG Suite.

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