Why Families Need a Plan for Caregiving
Adult children need to work with their parents to put aside funds for unexpected costs.
Kamilah Williams-Kemp, 43, is the head of Northwestern Mutual's long-term-care insurance business. She was the primary caregiver for her mother last year.
How did you become a caregiver? My mother is 67, and she had an infection that caused an abscess in her frontal lobe that required brain surgery. She has no short-term memory. After the surgery, she went to a subacute facility, and then she moved in with us for about a year.
What surprising expenses did you have when caring for your mother? The house was very busy with care providers and occupational, physical and speech therapists. Most of the costs were covered through her health insurance, but some of the co-pays for the specialty medications were unexpectedly high.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How can people manage the cost of caregiving? Use all of the resources available. I used our employee assistance program at work to help find caregivers and other resources. A geriatric care manager can help determine where care should be received based on physical needs, financial resources and personal preferences. Talk with a financial adviser so you can plan for the costs in advance. Are there specific assets or streams of income that can be used for care? If there is concern that there are insufficient resources, consult an elder-law attorney to discuss whether or not Medicaid may be available.
My husband and I bought long-term-care insurance a little sooner than most people. My husband's grandmother went into a nursing home when she was 98, and it reinforced our desire to have more options.
What can people do ahead of time to prepare for the possibility of caring for an older relative? As overwhelming as it can seem, try to talk about it with your parents. My dad passed away 10 years ago after a long bout with pancreatic cancer, and it made us think about what we'd do if anything happened with my mom. She wouldn't have qualified for long-term-care insurance because of other health issues. We talked with her about moving in with us and let her know we'd be there for her. As people plan for the future, they typically think about retirement, education and an emergency fund, and they should also be deliberate about setting aside money to use if there's a care situation, even if it's a small amount each month.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Stock Market Today: Stocks at Record Highs as Earnings Season Ramps Up
Markets continued where they left off last week amid rising optimism over corporate profits.
By Dan Burrows Published
-
How to Rank Your Financial Priorities
Circumstances are different for everyone, but this adviser with 20-plus years of experience shares some insights on getting your financial priorities in order.
By Andrew Rosen, CFP®, CEP Published
-
Medicare Basics: 11 Things You Need to Know
Medicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
By Catherine Siskos Last updated
-
Six of the Worst Assets to Inherit
inheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
By David Rodeck Last updated
-
403(b) Contribution Limits for 2024: Good News for Teachers
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Last updated
-
SEP IRA Contribution Limits for 2024
SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
By Jackie Stewart Last updated
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Last updated
-
SIMPLE IRA Contribution Limits for 2024
simple IRA The SIMPLE IRA contribution limit increased by $500 for 2024 and workers at small businesses can contribute up to $16,000 or $19,500 if 50 or over.
By Jackie Stewart Last updated
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
By Jackie Stewart Published
-
Roth 401(k) Contribution Limits for 2024
retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
By Jackie Stewart Last updated