November 22, 2024
Allworth financial advisor Allison Scoggin, CFP®, shares strategies for managing the financial and emotional responsibilities of caring for aging parents while staying focused on securing your own financial future.
If you’re caring for aging parents, you’re probably facing a unique balancing act—managing their needs while trying to secure your own financial future. As a financial planner, I see this scenario often. It’s both rewarding and challenging, and it requires a thoughtful approach to ensure that both your parents’ well-being and your own financial health are maintained.
Here are some practical steps to help you support your loved ones without sacrificing your future stability.
One of the first things to do is gain a full understanding of your parents’ financial situation. This can be a delicate conversation, but it’s essential to have an honest discussion about their income sources, debts, savings, and expenses. It’s also a good time to ask about their insurance coverage and any existing long-term care plans.
Why it’s Important: Knowing the details will help you anticipate future needs and avoid surprises down the road. If you’re managing this without clear information, unexpected expenses could crop up, putting you in a tight spot.
How to Approach It: Start by framing the conversation around your shared goal of ensuring they’re comfortable and well-cared for. Emphasize that knowing their financial picture is about helping them maintain independence and security, not about prying into their personal business.
Long-term care is one of the biggest financial challenges for families. The cost of assisted living, nursing homes, or in-home care can add up quickly, especially as needs become more complex. Talking with your parents about their preferences and looking into options together can help you plan for this, even if it’s down the road.
Consider Options Like:
The Bottom Line: Preparing for long-term care options before they’re needed gives you and your parents a clear roadmap and some peace of mind.
Many people feel a strong sense of duty to financially support their aging parents, especially if they’re facing unexpected medical or care expenses. While it’s natural to want to help, be cautious about sacrificing your own financial goals—like retirement savings, debt management, or emergency funds—to do so. You need a financial foundation for yourself, too.
Ways to Set Boundaries:
Helping your parents doesn’t mean putting your own security at risk. Remember, the goal is to support them sustainably, not to drain your resources in the process.
When caring for aging parents, making sure their legal and financial documents are in order is essential. These documents help you understand their wishes and give you the authority to make decisions if they’re unable to do so.
Important Documents to Review:
Taking Action: Schedule a time to review these documents with your parents and an estate attorney, if needed. It’s much easier to handle these things now, when they can fully participate in the decisions.
While it’s natural to want to focus on your parents’ needs, it’s equally important to keep sight of your own financial goals. Saving for retirement, paying down debt, and building an emergency fund should all be on your radar as you support your parents.
Strategies to Keep You on Track:
Supporting aging parents while managing your own finances is no easy task. It requires patience, planning, and open communication. The key is to approach it with a clear plan—understand your parents’ needs, protect your financial boundaries, and keep your own goals in focus.
Remember, you’re not alone in this journey. Many people are navigating similar situations, and there are resources and support systems available. If you’d like to discuss strategies tailored to your family’s unique needs, I’m here to help. Let’s work together to find solutions that support both your loved ones and your future.
No matter what changes may happen in life, I believe it’s possible to refocus any situation in a way that helps to create positive change. That is why I love being a financial advisor and helping my clients listen to their inner voice and change their outcomes for the better.
.svg)
.svg)
.svg)
.svg)
Privacy Policy | Disclosures | Cookie Preferences | Do Not Sell or Share My Personal Information
Advisory services offered through Allworth Financial, a Registered Investment Advisor | Disclosures | Privacy Policy
Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Check the background of this firm on FINRA's BrokerCheck.
HMRN Insurance Agency, LLC license #0D34087
1Barron’s 2024 Top 100 RIA Firms. Barron's© magazine is a trademark of Dow Jones L.P. The ranking of independent advisory companies is based on assets managed by the firms, growth, technology spending, succession planning, and other metrics.
2 Retention Rate Source: Allworth Internal Data, FY 2022
3 The NBRI Circle of Excellence Award is bestowed upon NBRI clients meeting one or both of the following criteria: Total Company score at or above the 75th percentile of the NBRI ClearPath Benchmarking Database and/or improvement of five (5) or more benchmarking percentiles in Total Company score over the previous survey.
4 As of 7/1/2024, Allworth Financial, an SEC registered investment adviser and AW Securities, a registered broker/dealer have approximately $22.5 billion in total assets under management and administration.
5 InvestmentNews 2020 and 2021 Best Places to Work for Financial Advisers. The ranking reflects survey responses and scores completed by both employers and employees. Employers report their organization’s workplace policies, practices, and demographics. Employees complete a survey designed to measure the employee experience.
6 2021 Value of an Advisor Study / Russel Investments
7 Ranked 9th Top Wealth Managers By Growth in Assets in the U.S. from RIA Channel, 2022. RIA Database and RIA Channel are registered trademarks owned by Labworks, LLC.
8 USA Today Best Financial Advisory Firms 2024. The ranking is based on the growth of the companies’ assets under management (AUM) over the short and long term and the number of recommendations they received from clients and peers.
9 NBRI Best in Class Ethics 2023. The Best in Class level is bestowed upon clients performing at or above 90 percentile of the NBRI ClearPath Benchmarking Database.
✢ Scott Hanson, Investment Advisor 2005, 25 most influential people in the financial services industry. The ranking reflects 25 people who Investment Advisor magazine believes have had or will have the greatest influence on the financial services industry.
✼Pat McClain, InvestmentNews 2014, Invest in Others Community Service Award, presented to an advisor who has made an outstanding impact on a community through managerial contributions to a non-profit organization.
†Financial Times, FT 300 Top Registered Investment Advisers, June 2019. The ranking reflects six areas of consideration including the company's years in existence, industry certifications of key employees, AUM, asset growth, SEC compliance record and online accessibility and calculates a numeric score for each company.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.