Season 4

Family Caregivers and Money

Episode Notes

New research from EMD Serono’s Embracing Carers initiative found that 54% of family caregivers said that the COVID-19 pandemic has worsened their financial health. To help pay for their parent’s medical and living costs, children may have to use money they were saving for retirement or their own children’s higher education. If a caregiver has to quit a full-time job, this may reduce their future Social Security benefits and keep them from saving for their own retirement at work.

There are a number of ways parents and children can work together to ease this financial burden for both sides. First, parents need to help document all of their financial information, including location of assets, titles and deeds, attorney and accountant contact information, and life and burial insurance policies. Before a crisis occurs, parents should assign healthcare and financial power of attorney to their children to allow them to make key decisions when they’re no longer able to able to do so on their own.

Parents should also consider getting long-term care insurance to enable them to receive skilled care in their homes without consuming all of their savings. Some policies can be combined with life insurance to provide death benefits to heirs if the long-term care benefits aren’t used.

Children need to be sensitive in the way they bring up these issues. Start by offering to do small tasks, such as opening their parents’ mail or making sure bills have been paid. When it’s time to make major decisions, frame the discussion as a gift between generations: Children give their time to help their parents deal with declining health, and parents provide the financial support and cooperation to prevent this assistance from becoming a burden. To help sort through these complex issues, parents and children may wish to hire a qualified fee-only fiduciary investment adviser. But it’s important to research their background and licenses to make sure they’re not members of the large community of scammers and criminals who prey on the elderly.

For further research:

Recent Podcasts

Season 7
Why Women are Leading Sustainable Investing

Show Episode Notes

In this episode, Pam, Terry and Richard discuss the pros and cons of socially responsible investing, whose increasing popularity is being driven mainly by women. In particular, they examine whether women sacrifice returns by investing in stocks or ESG funds that align with their personal values. The answer may surprise you.

For further research:

Janine Firpo, Activate Your Money: Invest to Grow Your Wealth and Build a Better World

Season 7
5 Tips for 401(k) Rollovers

Show Episode Notes

Directly rolling over a 401(k) plan to an IRA with a custodian like Fidelity, Schwab or Vanguard is something most people should do as soon as possible after they retire. Why? Because most 401(k) plan investment options are designed for people saving for retirement, rather than for those who need their nest egg to generate income to help pay for everyday expenses. Rollover IRAs offer access to a wider variety of investment options, many of which may have lower expenses than the funds in your 401(k) account. But since you may need money in your IRA to last 20 years or more, you may not feel confident making your own investment decisions. A low-cost robo-advisor can automatically invest your rollover IRA money but won’t be able to answer your questions or address your concerns. That’s why it may be worth paying more for the services of a fee-only fiduciary financial advisor. They not only can manage your investments but can come up with a comprehensive plan to address the financial opportunities and challenges you may face during retirement. 

For further research: 

Show Episode Notes

Podcast Hosts

Pam Krueger

Pam Krueger

Terry Savage

Terry Savage

Richard-Eisenberg

Richard Eisenberg

Stay Tuned Into Friends Talk Money

Copyright © 2021 FriendsTalkMoney.org