Steps, Takeaways to Help Plan for the Unknown

by Brian Vaughn

McCalla RaymerLeibert Pierce, LLC*

USFN Member (AL, CA, CT, FL, GA, IL, KY, MS, NV, NJ, NY, OH, OR, TX, WA)

One thing the pandemic brought to light for me, and my husband, was the unknown of the future. I don’t mean reading the tea leaves or anything like that. As the only two in both of our families who could work remotely, we became the primary caregivers for our mothers, literally overnight. Both our mothers have underlying health issues, requiring us to be very cautious. This led to a bigger question, what do we do to prepare for our own future? With no kids of our own, who will be there to take care of us in our Golden Years?

This sparked a series of conversations with friends in similar circumstances, specifically those in the LGBTQ+ community, and the topic took on a life of its own. We have friends that are single with no family left, friends that have young children with special needs, and some friends who haven’t even stopped to evaluate their current situation. Either way, these discussions led to some detailed research, and hopefully, our findings can help others facing comparable challenges.

So, you have no kids to put you in the nursing home? This covers a lot of my friends, not just those in the LGBTQ+ arena, but many that simply chose not to have children. My gay friends came up with the idea of investing in a LGBTQ+ nursing home, think “Golden Girls” merged with a cruise ship feel. Sounds fun, but probably not practical. For us personally, we made the decision not to have kids because of the cost of surrogacy, and we felt our work travel schedules at the time were not conducive to raising a kid. The truth is that many barriers stood in our way. The legal and political landscape of the time didn’t support same-sex marriage, same-sex adoption, or foster care. Cost for surrogacy, adoption, and IVF treatments are outrageous for anyone, not just those in the LGBTQ+ community. Like many, both gay or straight, we made the decision at the time that was right for us.

So, here are some thoughts. First, save, save, save. If you don’t have a 401K, get one. If you can qualify for an IRA or Roth IRA, do it. If you are about to turn 50, like me, make sure you take advantage of the catch-up option in your 401K. If your company offers a Health Saving Account, use it. If you are one of the millions of Americans who live paycheck to paycheck, or are in a heap of credit card debt, work with a financial advisor or community organization to create a budget. The rule is always to pay yourself first.  Working in the financial services market, it is important to focus on the financial stability of our futures. There are many resources provided by banks, financial institutions, and community organizations, and many are even free. Software for personal finance and budgeting, such as NerdWallet, Quicken, Mint, GnuCash, AceMoney Lite, Personal Capital, and Buddi, are just a few options to consider as well.

Second, investigate long-term care insurance. This option can be costly, depending on when you start the process, and costs can vary depending on possible health screening. Ask your HR group if your company benefits include access to any insurance brokers. Many providers offer some form of cash benefit to be paid out to a beneficiary upon death, or even a cash out option, but the cash out options can have a hefty penalty. These policies help cover costs for assisted living and health benefits that are usually very high as you age. Currently, assisted living or memory care in the Dallas-Fort Worth area, for example, can run between $4,000 – $6,000/month. Some retirement communities offer a buy-in based on your financial situation, like buying a home to get into the community; but many are arranged to accommodate you as your health care needs change, starting with independent living, then assisted, nursing, and hospice care.

If you are one of the 20.9 million families with members who have disabilities or special needs, you are aware of the challenges ahead - like costs to prepare for the future if something were to happen to you. It is always key to talk to family about the unknown. Work with an attorney to prepare a will or trust and make each member of the family aware of your wishes. For those in a relationship but not married, you should ensure you have forms for domestic partnership, HIPPAA, hospital visitations, and beneficiary choices. Again, focus on financial security. Talk to other family members about their roles in care giving for your loved ones. Be prepared by looking for appropriate facilities near the family, even if it is only to gather information about costs and services offered.

Most importantly, and this goes for any situation, have a path forward. There is less burden on your family when they know your wishes, where to find your documentation, and have a map to follow. If you don’t have a will on the back of a bar napkin or tattooed on your arm, please prepare one. Many of the firms in our space have access to someone who can help if you prefer to have a live attorney guide you. It can cost anywhere from $100-$1,000 for the basics. This could also become a new benefit that your company offers its employees. If cost is a concern, using free sites, which is always an option and will guide you through the process.

I must leave you with a funny story. We were on a cruise, and the captain told us about a woman who lived on the ships, having traveled with the cruise line for years. The woman would sail from one port to another, and then switch ships for the next cruise. When questioned, she told the captain, “Why would I not? I have the best views each day, the best selection and variety of foods, a 24-hour doctor and health care, and I get to meet new people every day. It is also cheaper than my past house payments.”  Needless to say, this woman is my hero!!

So, what is your takeaway from this rant? Be prepared. Save, save, save. Talk to your person or persons.  None of us know what the future holds or how much time we have. Do not wait, start today.

Copyright @2023

USFN e-Update - February 2023