CARING RESOURCES FOR LOVED ONES

CARING RESOURCES FOR LOVED ONES

Last month's blog post What are the top ten things you need to know in dealing with your aging parents finances?  generated many responses.

Many of us are care givers. Caregiving is a responsibility best managed with plenty of help. Yet, many of the nearly one in four adults who are caring for another adult miss out on the bounty of resources available through dozens of local and national organizations. The mission of these organizations is to help caregivers, either because they're not aware that they exist or they don't realize what they offer.

The following groups can help you solve practical problems, save time, lighten your stress load, learn about common problems of aging, connect with others in similar situations, and otherwise simplify the many challenges that caring for an older adult can bring:

1.    Area Agency on Aging

How they can help you: Get general information about eldercare and referrals to aging-related services and programs in your community. These resources include case managers, transportation, meals, adult day services, in-home caregivers, legal assistance, home repair and modification, housing options, and more. The exact name of the organization can vary by community. Area Agencies on Aging are your single best bet for identifying eldercare services in a specific community.

Extra help: Information and referrals are free, and services referred to are often free or inexpensive.

Who they are: The 629 Area Agencies on Aging are a key part of the National Aging Services Network, operating under the U.S. Administration on Aging.

How to find: Check the National Association of Area Agencies on Aging website or the Caring.com local directory. Or go directly to the federal Eldercare Locator or call 800-677-1116.

2.    Family Caregiver Alliance

How they can help you: This advocacy, research, and education group focuses on family caregivers (of aging parents and of other disabled adults or children). Sign up for webinars about tough topics like paying for care or dealing with siblings, access a trove of fact sheets about common conditions and problems, or participate in online discussion groups.
Extra help: The Family Care Navigator tool is a handy list of safety-net services in each state. You'll find links to government agencies and nonprofit and for-profit services in your area. The Family Care Navigator also includes links to national agencies and services.
Who they are: Pioneers in the area of promoting and supporting caregiver needs, FCA was founded in 1977 to create support for long-term care services in San Francisco. They still operate many California-based educational and support programs -- including one-on-one social work counseling for San Francisco Bay Area residents -- but their advocacy work and caregiver education outreach is now nationwide. The National Center on Caregiving is an FCA offshoot formed in 2001 to develop policies and programs to support caregivers in all 50 states.
How to find: Go to Family Caregiver Alliance.

3.    National Alliance for Caregiving

How they can help you: Mainly, this influential advocacy group helps individual caregivers indirectly by analyzing public policy and conducting research on topics like the economic and personal impact of caregiving. It also produces public awareness campaigns and promotes state and local caregiving coalitions. But its website points you to tip sheets, webcasts, podcasts, and publications providing basic caregiver advice on issues like caring for someone who's depressed or long-term care planning.
Extra help: Family Care Resource Connection rates and reviews books, websites, videos, and fact sheets.
Who they are: The National Alliance for Caregiving is a nonprofit coalition of a wide mix of more than 30 groups that share an interest in family-based eldercare. Members include service and advocacy groups, corporations, grassroots groups, and more. Formed in 1996, the coalition produces research and policy suggestions intended to improve the quality of life for family caregivers.
How to find: Visit National Alliance for Caregiving.

4.    Meals on Wheels Association of America

How they can help you: Find one of the more than 5,000 senior nutrition programs serving hot meals to older adults with its Find a Meal tool.
Extra help: While primary caregivers may not have the time, your relatives and friends can "give back" by going through the MOWAA site to volunteer time in their communities making deliveries, preparing meals, driving, or providing office help. Volunteers are the program's backbone.
Who they are: Meals on Wheels is the largest and oldest meal-services organization in the U.S., dating to a Philadelphia program in the 1950s. In 1976 it began working with senior nutrition programs nationwide to provide the resources, manpower, tools, and information needed to fight the problem of senior hunger.
How to find: Go to Meals on Wheels Association of America.

5.    Independent Transportation Network

How they can help you: Those who need rides apply through a local affiliate group, paying a membership fee ($40 annually) and financing a transportation account based on estimated usage. Rides, in private cars driven by screened volunteers, average $9. Rides can be planned in advance or arranged as needed. This fast-growing service is mainly still in urban areas.
Extra help: Gift certificates let family members pitch in.
Who they are: A national nonprofit transportation service for older adults, the group marries information technology with grassroots support. It was founded by Katherine Freund, the mother of a toddler injured by an older driver; she decided that a flawed transportation system for older adults, not the older driver himself, was the cause and vowed to change this.
How to find: Visit ITN America.

6.    National Council on Aging

How they can help you: Find out what benefits your loved one is entitled to through BenefitsCheckUp, a comprehensive benefits screening tool. Home Equity Advisor provides tools to help you use and protect the value of a home.
Extra help: ReStartLiving is a program to help older adults who are living with one or more chronic conditions enhance their health through better self-management. Evidence-based workshops are available online and in person and can support your loved one's ability to remain independent longer.
Who they are: A nonprofit service and advocacy group in Washington, D.C., NCOA calls itself a national voice for older Americans and the community organizations that serve them. The organization works with thousands of groups nationwide to build creative solutions to aging-services needs, including many programs for the public. Formed 60 years ago as the National Committee on Aging (and renamed in 1960), this influential mega-group has been involved in the formation of many influential initiatives, including the American Association of Homes for the Aging, Meals on Wheels, Foster Grandparents, and the Center for Healthy Aging.
How to find: Go to National Council on Aging.

7.    Next Step in Care

How they can help you: Because they tend to be left out of the discharge planning loop, caregivers are often caught off guard by the added complexities of transitioning a loved one from one care situation to another, such as from home to a hospital, from the hospital to a rehab facility or back home, or to a long-term care facility. Next Step in Care has created detailed guides and checklists to help you ask smart questions, know how to best prepare, and not overlook anything.
Extra help: Next Step in Care materials can be viewed from a smartphone or other device so you have them on hand in the event of an ER visit or while away from home; the checklists and forms are also downloadable as PDFs.
Who they are: Next Step in Care: Family Caregivers and HealthCare Professionals Working Together is a program of the United Hospital Fund, a New York-based organization that promotes high-quality, patient-centered care. In 2006, the fund created a task force to develop an initiative that would help family caregivers through these care transitions, and Next Step in Care was born. It's unique in that it addresses healthcare providers as well as family caregivers, and it focuses on transitions not just in and out of hospitals but also to and from nursing homes, in-home care, and rehabilitation programs.
How to find: Visit Next Step in Care.

8.    Well Spouse Association

How they can help you: Providing care to a chronically ill husband, wife, or life partner brings particular challenges. This group connects you with others who have been there (or are also there now), for a unique kind of support. A forum and chat line are available to everyone; paying members ($30 per year) also have access to local support groups, new telephone support groups, newsletters, and weekend respite events.
Extra help: A mentor program pairs caregivers with someone who's been through a similar experience before for one-on-one advice and support
Who they are: Ten spousal caregivers between the ages of 30 and 57, whose mates had diseases ranging from multiple sclerosis and diabetes to heart and brain conditions, came together in Wallingford, Pennsylvania, in 1988 to create the Well Spouse Association. They now count more than 3,000 members (and say there are 7 million spousal caregivers nationwide). WSA mottoes: "You are not alone" and "When one gets sick … two need help."
How to find: Visit Well Spouse Association.

9.    VA Caregiver Support

How they can help you: Resources specifically designed for caregivers of U.S. military veterans include professional support coordinators who match you to services for which you're eligible, adult daycare centers, home-based care services (skilled and unskilled), a telehealth program (education, training, and support for those who don't live near a VA center), and a home hospice program.
Extra help: The National Caregivers of Veterans Support Hotline (1-855-260-3274) can help you access services, connect you with a VA support coordinator near you, or just listen.
Who they are: Part of the federal U.S. Department of Veterans Affairs, the Caregiver Support program is a recent addition to the large roster of veterans' services. The VA was formed to fulfill President Abraham Lincoln's promise, "To care for him who shall have borne the battle, and for his widow, and his orphan."
How to find: Go to VA Caregiver Support.

10.                       Medicare Resources for Caregivers

How they can help you: Find out what type of expenses the various Medicare programs each cover, see videos about topics like hospital discharge planning, and learn about sources of caregiver support, including first-person stories, to-do lists, and state-by-state lists of helpful organizations. You can also submit questions about which tests, items, and services are covered and get pointed to a list of links with possible answers.
Extra help: Ask Medicare is a service for caregivers, expanded in early 2012, that gives information about care options, financial support, and billing terms. You can also sign up for a free Ask Medicare e-newsletter that gives caregiver advice and resources.
Who they are: Medicare is the federal health insurance system for people with certain disabilities or who are over age 65. While the whole website offers all kinds of Medicare-related information, its Caregiving section is written specifically for family caregivers.
How to find: Medicare.gov is the official U.S. government site for Medicare.

By Paula Spencer Scott, Senior Editor at Caring.com.  Because of the possibility of human or mechanical error, Paula Spencer Scott, Caring.com or Timothy Watters, Watters Financial Services does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Watters Financial Services, Caring.com, Timothy Watters or Paula Spencer Scott be liable for any indirect, special or consequential damages in connection with the use of the content.

What are the top ten things you need to know in dealing with your aging parents finances?

What are the top ten things you need to know in dealing with your aging parents finances?

1. Know What Estate Planning Documents Your Parents Have:

• Last Will & Testament
• Durable Power of attorney
• Living Will/Health Care Proxy

2. Know Where Your Parent’s Documents Are Stored.

3. Know who has the Role of Power of Attorney, Executor, Health Care Proxy and Guardian –Are They Still the People Your Parents Want?

4. Know Who Your Parent’s Advisory Team Is and Have a Meeting With Them.

5. Know Whether Your Parents Have Filed Their Tax Return.

6. Know What Your Parents Are Invested In.

7. Know If Your Parents Have Long Term Care Coverage and If they Do, Learn What the Benefits Are.

8. Know What the Cost For Care Is For Your Region. Check Out the Metlife Long Term Care Cost Study:

    https://www.metlife.com/mmi/research/2012-market-survey-long-term-care-costs.html#keyfindings

9. Know That Poor Financial Decisions Are Often The First Sign of Trouble. Periodically, Look at the Credit Card statements and the Investment Account Statements. –Are There any Recent Unusual transactions? Are they Bouncing Checks?

     10.  Know That Financial Independence is a Sensitive Topic. It May Take a While  Before Your Parents are willing to enlist your aid.

If you have any questions about this topic, please feel free to call my office at 201-843-0044 or email me at twatters@wattersfinancial.com

Should you have Long term Care?

Genworth Financial’s  2013 Cost of Care Survey, conducted by CareScout, included nearly 15,000 LTC providers from all 50 states.

The top ten most expensive states for Long Term Care are New Jersey, New York, Connecticut,  Maine, New Hampshire, Vermont, Delaware, Massachusetts, Hawaii and Alaska. I’ve listed below the costs for New Jersey, New York and Connecticut. The study, running for its 10th year, indicates that over the past five years the median annual rate for a room in a private nursing home has increased by 4.45% (compound annual growth rate), so that the room you might have had in 2008 at a cost of $67,525 will now cost you $83,950—an additional $16,425 per year.

The top ten least expensive states include  Arkansas, Texas, Iowa, South Carolina, Georgia, Kansas, Oklahoma, Alabama, Louisiana and Missouri

I recommend Long Term Care insurance for all my clients because only a lucky 30% of the population is estimated not to need long-term care after age 65. If you want to discuss this further, please call me.

New Jersey

Average Annual Cost: $65,203

Adult day care: $20,800

Licensed home care: $46,904

Assisted living: $71,928

Nursing home (private room): $121,180

New York

Average Annual Cost: $59,598

Adult day care: $19,500

Licensed home care: $45,760

Assisted living: $47,400

Nursing home (private room): $125,732

Connecticut

Average Annual Cost: $68,983

Adult day care: $20,800

Licensed home care: $43,472

Assisted living: $60,000

Nursing home (private room): $151,658

Spring Cleaning

Spring Cleaning

Tax season is here and if you are like me, you are in the process of pulling together statements, receipts and 1099s. It is also a good time to do some spring cleaning financially. Below are a few time tested tips to follow. The good news is that you do not have to do them all at once. We are here to help you.

1.     Set up a file system that works for you. It is a good idea to separate information you will need within the next year, such as receipts or transaction confirmations; storage bins for documents you need to save for more than one year, such as tax returns (3 years after filing) or real estate records (for as long as you own the property, plus 3 years); and a fireproof, lockable box for difficult-to-replace items such as your Social Security card, wills and other estate planning documents.

2.     Read your estate planning documents again to make sure nothing has changed in your life that might require some revisions. Often, the last time clients reviewed the documents was during the signing of the documents. Make sure that the people you chose for the various roles in estate planning are still the right ones.

3.     Make sure your beneficiary assignments are up to date. Often, people name primary beneficiaries but not contingent beneficiaries. It is also not a bad idea to discuss your beneficiary assignments with your attorney as well.

4.     Get your free credit report available annually (www.annualcreditreport.com) and clean up any entries made by creditors that are incorrect.

5.     Set up an automatic transfer from your paycheck or checking account to savings account(s) and begin building “slush fund” accounts to fund different emergency reserve funds for cash needs each year (i.e.; vacations, car repairs, gift giving). This will help you avoid building credit card debt because the money will be there when you need it.

6.     Embrace technology to help you pay your bills. Use your mobile phone or computer to send you reminders of payments due. This avoids your paying late fees!

7.     When you replace the batteries on your smoke detectors, check out your home owner’s policy as well. Make sure you have the right coverage. Often people do not have enough insurance for the big risks and have deductibles that are too small.

8.     Spend time looking at your checking account and credit card statements and debit transactions from the year before. If you have online banking, you can usually export a year’s worth of transactions into a spreadsheet, which you can then sort and classify.

9.     Consider using an electronic financial planning program like Quicken or www.mint.com. You’ll see where you are spending the most money and can therefore focus your budgeting and cost–saving efforts accordingly.

What is the Sequester?

With the many emergency fiscal deadlines, partisan battles and near economic crises the US citizens have been subject to over the last few years, it is easy to discount the importance of the Sequester.  The Sequester refers to automatic cuts to the federal budget that are projected to trim $1.2 Trillion dollars from the federal budget over ten years. In 2013 alone, this means that $85 Billion dollars will need to be cut from the federal budget. This would have a big impact on the economy, especially one experiencing a very slow economic recovery.

In order to give you a better understanding of this topic, I have attached a recent article from JP Morgan Asset Management for your review. If you have any questions, please feel free to call my office.

https://host148.agsdc.net/UCFiles_FAM/Attachments/JPM-MI-MB-Understanding_the_Sequester.pdf

What is the best way of managing inherited retirement assets?

I often get asked this question by clients. Every situation is unique but this article from the Financial Planning Association is a good primer on the subject. If you have any questions on this topic, please call my office.

Considerations for Inherited Retirement Assets 

Description

This article teaches readers about options for managing assets inherited from a loved one's qualified retirement plan, such as an IRA, 401(k) plan, or 403(b) plan. 

Your options in managing assets that you inherit from a loved one's qualified retirement plan may depend on the type of retirement plan in question -- for example, 401(k)/403(b) plan or IRA -- and your relationship to the deceased.

Employer-Sponsored Retirement Plans

Federal laws require that a spouse be the primary beneficiary unless he or she waives that right in writing. When retirement plan assets are left intact within an estate, spousal beneficiaries may inherit the money without paying federal estate or income taxes. After age 70 1/2, the surviving spouse must begin required minimum distributions (RMDs) based on his or her life expectancy. The RMDs are taxed as ordinary income.

With nonspousal beneficiaries, the plan's rules may determine the beneficiary's options. Some plans require nonspousal beneficiaries to cash out retirement plan bequests between one and five years after the account owner's death. In contrast, other employer plans may offer nonspousal beneficiaries the option of completing a trustee-to-trustee transfer from an employer-sponsored plan to an IRA established for this purpose and subsequently taking annual distributions based on the beneficiary's life expectancy. Regardless of the method that you follow, distributions taken by heirs are taxed as ordinary income.

It is critical that beneficiaries determine the rules of the deceased's retirement plan and consult a financial advisor who can make sure that a bequest from an employer-sponsored retirement plan is managed properly, thereby avoiding unnecessary tax payments.

IRAs

With an IRA, spousal beneficiaries may designate themselves as the account owner and treat an inherited IRA as their own. This means a surviving spouse can transfer the assets to an existing IRA or to an employer-sponsored plan. These transfers typically do not trigger tax payments as long as a spouse follows the rules for trustee-to-trustee transfers. After age 70 1/2, a spousal beneficiary is mandated to take annual RMDs, which are based on the surviving spouse's life expectancy and are taxed as ordinary income.

Nonspousal beneficiaries cannot transfer assets within an inherited IRA to an existing IRA. Instead, they have two options: They may take all distributions within five years of the original account owner's death or take annual distributions determined by the life expectancy of either the beneficiary or the decedent, whichever is longer.

Because determining the tax status of inherited assets can be complicated, you may want to consult an estate-planning attorney or a financial advisor to answer any questions you may have.

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Required Attribution

Because of the possibility of human or mechanical error by McGraw-Hill Financial Communications or its sources, neither McGraw-Hill Financial Communications nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall McGraw-Hill Financial Communications be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

© 2012 McGraw-Hill Financial Communications. All rights reserved.

Password Protection

How to protect yourself from computer hackers!

There was a recent article in the New York Times that I think you will find very helpful. It is about passwords and how to better secure your personal and confidential information. After reading this article, I changed all my passwords. I think you will too.

Here is the link:<http://www.nytimes.com/2012/11/08/technology/personaltech/how-to-devise-passwords-that-drive-hackers-away.html?_r=1&>