Thursday June 10, 1999
This week's Austin (TX) Business Journal reports that caring for an aging relative can be "a financial nightmare." In his article "Caring for Elders Can Ruin You Financially" (6/7/99), Eric Kendrick claims that one-third of families that care for a seriously ill member spend most or nearly all of their life savings. He cites the Journal of the American Medical Association (JAMA).
To help minimize the financial impact of caregiving, Kendrick suggests purchasing long-term care insurance:
"Buy long-term care insurance. If the aging adult can still qualify for long-term care insurance, buy a good personal policy. Children sometimes pay for the premiums if the parent can't; it's less expensive than paying out-of-pocket for care later."
This is excellent advice that is showing up more and more often in local, state and national media.
Kendrick's other recommendations for caregivers include: (1) plan ahead; (2) review personal financial resources; (3) put legal documents in place; (4) review community and government financial resources; (5) create a spending plan; (6) review investments; (7) keep taxes in mind; (8) take care of yourself; and (9) seek professional assistance. Kendrick elaborates on all of these points in the article.
*Source: Eric Kendrick, "Caring for Elders Can Ruin You
Financially," Austin Business Journal, June 7, 1999. http://www.amcity.com/austin/stories/1999/06/07/smallb4.html