What is a financial caregiver?

As people age, it is not uncommon for them to need extra medical supervision as well as help with day-to-day tasks around the house to keep their standard of living.

One area of care that doesn’t always get the most attention is finances. According to USA Today, about 92 percent of caregivers are having to take on the responsibility of managing bank accounts, insurance claims, taxes, and investments. Also, these same caregivers are spending $190 billion out of their own pockets each year to help provide financial stability for their loved ones in cases where their needs exceed their means.

As family members approach the time when they will need extra support, it will be beneficial to start planning early for issues that will likely come up. Long-term care insurance, for instance, is usually only an option when a person is still healthy, and it can provide more opportunities for care once things become more difficult.

Likewise, many continuing care retirement communities offer ways to ensure proper care over many years, but they often require the person to move in before significant issues develop. In both of these cases, a lack of planning can lead to more substantial costs and an inability for the care recipient to live where they want to.

As mentioned, financial caregivers often end up entirely managing the finances of their loved one, and this will usually require navigating insurance products that they might not be familiar with personally. Finding resources on how things work at an individual’s state and local level can be challenging. It is helpful to be able to reach out to people who are in a similar situation to find a support system for information sharing. While not all financial advisors are equipped to deal with these kinds of cases, it is possible to find a willing and knowledgeable agent to help at least keep the financial boat afloat for as long as necessary.

At the other end of the spectrum, individuals who are wondering whether or not they might need help in the future should be acting sooner rather than later. U.S. News recommends considering the legal process necessary to create powers of attorney for financial and medical decisions that make sense for everyone involved. In these cases, trust is the most important thing to consider as giving another person complete control over one’s financial life could open the door for mishandling or outright abuse. In some cases, a trusted financial advisor can be employed to help watch over the big picture to ensure that family members are not acting selfishly.