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Learning Centre

You Get What You Plan For

By: Asaf Shad CFP

Eldercare?!? Just when you thought the kids were all grown up, almost out the door and your care giving responsibilities on the decline, somebody mentions eldercare. In fact, statistics now show that one in four adults is charged with some level of eldercare responsibilities. The good news is that you are not alone.

Why is this good news for you? This increased popularity of eldercare has led to an entire industry, which means you now have a multitude of resources to help tackle this little curve ball that life has thrown your way. How will this responsibility change your life? How will your social life be affected? What will need to change and by how much? Let's see…

The Plan

Just as a financial plan helps you keep your finances in order, a detailed care giving plan will help ensure that your eldercare goals are met. The purpose of this plan is to list the various resources available to you, outline the expectations of your role and create an action plan of deliverables.

The first part of your plan should include a list of the following information:

• Location of documents: wills, power of attorney, insurance policies, deeds, bank and investment accounts, funeral and burial arrangements.
• Professional names and contact information for: financial planner, lawyer, doctor, dentist, accountant, insurance agent.
• Personal names and contact information for: you and your siblings, relatives, neighbours, close friends, clubs, associations, place of worship.
• Maintenance contacts for: home cleaning, snow removal, yard maintenance, building superintendent, property manager.
• Home and community support: home care services, seniors' centres, meals on wheels, community care centres, support groups, local social services listed in the municipal pages of your phonebook.

The second part of your care giving plan should include a list of expectations that you (and the elders) are expecting from your role as a caregiver. Once you have a realistic list in place, consult the first portion of your plan to see how each expectation can be met through a list of actions.

The third part of your care giving plan should be an action list along with a schedule of how often each item needs to be performed along with an estimated cost.

Financial Considerations

One of the more difficult decisions caregivers need to make is their level of involvement with the personal finances of their parents. From the care giving plan that you've created, you will have an estimate of care giving costs that should be factored into a money management plan.

For parents who can no longer live independently, important choices will have to be made:

• Will they come home to live with you?
• Will they seek in-home help?
• Will they decide on a nursing home?

All of these choices have financial and emotional consequences that need to be considered in great detail.

With the help of a Certified Financial Planner (CFP) professional, you can estimate the cost of each option and see if your parents have enough saved or whether you will have to help them financially as well. You may also wish to inquire as to whether long-term care insurance is a good fit.

Having recent and updated wills and powers of attorney are essential. Both these documents will be instrumental in allowing you to fulfill your parents' final wishes.

Some Helpful Tips

• Let it be known that you want to help your parents - not take away (from) their independence.
• Don't be afraid to seek expert help from an attorney, accountant, financial planner, doctor or other health professional.
• Consider automatic payments of important and recurring bills.
• Consider the direct deposit of any cheques into bank accounts.
• If you see any past due notices, unopened mail, unanswered phone messages and a general lack of awareness, you will need to get more involved.
• Be on guard against financial scams targeting the elderly.
• Create a list of activities that are suitable for their personality and health challenges that will keep them active and engaged.
• The Internet is full of support groups, eldercare service providers and other resources to help you accomplish this task.
• Your workplace may offer an Employee Assistance Program (EAP) that can help you tackle a range of issues.
• It is important to work with a professional financial planner that you trust to ensure sufficient funds are always available to meet cash flow needs.