If yes, have you shared this with your Financial Advisor?
If you answer yes to either of those questions you should send an email right away to your Financial Advisor and let them know; it will most likely change the agenda for your next meeting or bring about a meeting sooner than planned.
You may find yourself a caregiver to a loved one due to their age-related physical limitations (47%) or because a young child suffers a chronic illness (24%) or a family member is faced with long term rehabilitation from an accident (23%) or possibly an acute illness like pneumonia (10%). The duration of care needed can vary from months to years. Whatever the circumstance that set this in motion your life has changed for a period of time. You will need support from your family and friends, and you will also need to meet with your Financial Advisor.
A 2021 Genworth Study showed that 39% of caregivers also provided financial assistance to their loved ones. You may suddenly find yourself faced with a loss or a reduction in income, increased out-of- pocket expenses or costly modifications to your home. If you already have a financial plan in place you will need to have it updated to show the impact your new situation may have on your lifestyle, taxes retirement, and other goals. If your loved one has a Long-Term Care Policy it will need to be reviewed to confirm the benefits. In addition to providing day to day physical care, aging parents or sick adult children may also grant the caregiver the authority to manage their finances. In 2021 65% of caregivers said they consulted with their financial advisors for support and guidance.
If you are not currently a caregiver but feel confident that at some point you will be-now is the time to look into the future and start to plan for what might happen. Have copies of Long-Term Care and other insurance policies available for your Advisor to review. Your Financial Advisor and Financial Planner will work with you to model out different scenarios and the financial impact each will have on your lifestyle and probability of reaching your goals. The next step is to find the best solution for your changing situation.