Dealing with Alzheimers

The Squared Away blog offers a short video about Alzheimers disease and thoughtful comments.
The video "provides invaluable information and insight into the myriad causes of Alzheimer’s and the unique way its symptoms manifest in each individual. It also explains why diagnosis by a physician is critical – turns out, some people appear to have dementia, but the cause of their cognitive decline isn’t Alzheimer’s and may be reversible."
http://squaredawayblog.bc.edu/squared-away/dealing-with-alzheimers-in-the-family/

Who will care for aging Americans if the flow of immigrants is curtailed?

Immigrants play a big and growing part of providing care for America’s elderly parents and grandparents  

Gerald F. Seib explains the critical role of immigrants in caring for America's elderly in The Wall Street Journal (Jan. 28, 2018): How a Heated Immigration Debate Might Affect Grandma’s Care 

• "America is getting older. Some 10,000 baby boomers reach the age of 65 each day. By 2050, a fifth of the U.S. population will be age 65 or older, the Congressional Budget Office projects, up from 12% in 2000 and 8% in 1950."

• "Moreover, this large contingent of Americans isn’t simply retiring; it will live longer after retiring."

• "As Americans get older and live longer, they will require more long-term care"

"So who provides, and who will provide, the help the elderly need getting in and out of bed, bathing, dressing, cooking, taking medication and simply coping? A growing number of immigrants provide that care."

• 25% of home health aides, personal-care aides and nursing assistants are immigrants

"Moreover, the share of these workers who are immigrants has been rising, to 24% in 2015 from 20% in 2005. In some of the nation’s biggest states—New York, California, New Jersey and Florida—40% or more of these workers are immigrants. Among these immigrant workers nationwide, the PHI study found, 56% are citizens by naturalization, and 44% aren’t citizens."

• There already is a shortage of such workers, and that problem may become more acute as demand grows. 

• Demand for these workers is going to explode in coming decades
• The rate of disability and chronic conditions is increasing…

"We will need more people to fill that workforce gap, and immigrants are part of that solution.”
"Perhaps not surprisingly, many of these care workers come from countries that are in the crosshairs of the immigration debate. The largest shares come from Mexico, the Philippines, Jamaica, Haiti and the Dominican Republic."

 

Long Term Care Insurance: Pros and Cons

"Stiff annual premium increases are making long-term-care insurance unaffordable for some retirees, and the high cost can be traced to few insurers remaining in the market, writes Darla Mercado. Yet, with annual nursing home costs approaching $100,000, such policies may be worth holding on to if possible, she writes."
"Near-retirees wanting to shield themselves from nursing home costs face a quandary: Should they eat double-digit rate hikes for long-term care insurance, or should they walk away from their policy?
It's a $97,455 question." https://www.cnbc.com/2018/01/23/nursing-home-care-can-quickly-deplete-your-retirement-savings.html

On the Other Hand... The Wall Street Journal paints a negative view of the dramatically rising premium costs and shrinking pool of insurers.

Millions Bought Insurance to Cover Retirement Health Costs. Now They Face an Awful Choice

Battered by losses, long-term-care insurers hit policyholders with steep rate increases that many never saw coming

By Leslie Scism,Updated Jan. 17, 2018

"Long-term-care insurance was supposed to help pay for nursing homes, assisted living and personal aides for tens of millions of Americans when they became unable to take care of themselves.
Now, though, the industry is in financial turmoil, causing misery for many of the 7.3 million people who own a long-term-care policy, equal to about a fifth of the U.S. population at least 65 years old. Steep rate increases that many policyholders never saw coming are confronting them with an awful choice: Come up with the money to pay more—or walk away from their coverage."
“Never in our wildest imagination did we consider that the company would double the premium,” "says Sally Wylie, 67, a retired learning specialist who lives on Vinalhaven Island, Maine." The article explains the problems in the industry and the dilemma facing consumers who have policies or are considering purchasing coverage.

Another factor to consider:

Immigrants play a big and growing part of providing care for America’s elderly parents and grandparents

 Gerald F. Seib writes in The Wall Street Journal, Jan. 22, 2018:
"We are a nation with an increasing population of elderly parents and grandparents needing care their families can’t offer directly. Immigrants play a big and growing part of providing that care. The question quietly running beneath the surface is whether the changes now being debated in immigration laws and policies will upset all that."

 

Living ‘With the End in Mind’

"Death is the last thing most people want to think about, yet nothing could be more important—especially with advancing age or after a bleak diagnosis—than preparing for the end and understanding how it can happen. These days, such thinking is likely to include learning about palliative care, a specialty that began with the hospice movement in Britain in the 1960s and has become a growing branch of Western medicine."
"In With the End in Mind, Kathryn Mannix, a British physician, chronicles her career spent in the field. She has cared for patients ranging from toddlers with congenital diseases to adults with fatal cancers and the frailest of the elderly. With sometimes unsettling detail, admirable empathy and a sprinkling of humor, Dr. Mannix imparts valuable lessons for anyone who faces the loss of a family member or a personal reckoning with impending demise."Quoted from Laura Landro's review in The Wall Street Journal (1/18/18).
Add this book to your reading list!

How to talk to aging parents about money

When you were a kid, your parents probably talked to you about money, perhaps about the value of a buck or how you might spend your allowance. As time marches on, you may find the situation reversed—and that you have to have the "money talk" with your parents.

Adult children sometimes feel concerned that they're invading their parents' privacy when raising money issues. Parents, meanwhile, can feel threatened, or worry about losing their independence. Still, it can be helpful to have a dialogue with your parents about their finances as they get older.

• Show your love.
• Choose your words carefully.
• Talk about yourself.
• Offer to help.
• Ask the right questions.
• Keep an eye out for scams.
• Consider professional guidance.

Learn more at FINRA:
http://www.finra.org/investors/highlights/talk-aging-parents-about-money?utm_source=MM&utm_medium=email&utm_campaign=AI%5F082217%5FFINAL

Financial decisionmaking decline in older adults

 A recent study confirms that seniors become more confident in their ability to make financial decisions at the same time that their financial knowledge and decision making skills are declining... an ominous combination.

"Although episodic memory and financial literacy score decline at roughly the same rate after age 60, confidence in financial decision-making ability remains relatively unchanged with age. The percentage of overconfident respondents with high self-assessed ability and low objective literacy scores increases from about 10% in the 60s to higher than 30% among respondents over 85."
The likelihood of being overconfident with one’s financial knowledge increases with age. Each year of age after 60 increases the likelihood of having high confidence and low financial literacy scores by 7 %. Higher levels of education are associated with a much lower likelihood of overconfidence, as are being male and white."
"Recognition of diminished investment skills may increase demand for annuitization or the delegation of important financial decisions to a trusted advisor. However, our study finds that, in aggregate and within all financial decision-making domains, advanced age increases overconfidence in
financial decision-making abilities. The largest marginal effects are within the investment and insurance topic areas."
Similarly, "older drivers generally do not perceive a decline in their driving skills despite a predictable deterioration in sensory ability with advanced age."
Researchers Finke, Huston, and Howe: Old Age and the Decline in Financial Literacy, published in:
Management Science. Abstract available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1948627


Photo © Max Blain | Dreamstime Stock Photos

Tools for Financial Caregivers

Millions of Americans are managing money or property for a loved one who is unable to pay bills or make financial decisions.  This can be very overwhelming.  But, it’s also a great opportunity to help a loved one and protect them from scams and fraud. The CPBP Office for Older Americans has resources for financial caregivers.

1.  Managing Someone Else's Money Guides

A person named to manage money or property for someone else is called a fiduciary. The CFPB has created guides tailored to the needs of people in different fiduciary capacities: agents under a power of attorney, court-appointed guardians, trustees, and government fiduciaries (Social Security representative payees and VA fiduciaries).

Each guide contains information on the fiduciary’s responsibilities and tips on how to spot financial exploitation and avoid scams. Also, each guide includes a 'Where to go for help’ section with a listing of relevant agencies and service providers.

2.  State-specific guides

Because people’s powers and duties as a fiduciary vary from state to state, we also created state-specific Managing Someone Else’s Money guides. These state guides provide information about the state’s unique laws and practices, as well state-specific resources.  Currently, guides for Virginia and Florida are available, with four more state guides under development (Arizona, Georgia, Illinois and Oregon).

3.  Additional resources for older adults

If you are working with clients who are older Americans, the CPPB has other resources that you may find useful, such the Money Smart for Older Adults – Prevent Financial Exploitation curriculum and participant guide, a fact sheet on choosing a financial adviser, and a fact sheet on understanding reverse mortgages.

Retirement Planning While Caring for Aging Parents

Taking aging parents into account when creating a long-term financial plan is important for pre-retirees. More baby boomers are finding themselves supporting parents who have outlived savings.
"Thanks to welcome advances in medical care, people are living longer. That means more and more Baby Boomers are finding themselves helping their aging parents financially as they outlive their savings."  As Dara Luber writes for The Street, "If there's a chance you'll need to help your parents during their retirement, it's important to understand their financial picture now and in the future and incorporate that into your own retirement planning. Having a conversation might seem a bit intrusive at first, but remember that it's in everyone's best interest." Luger provides a list of questions to guide the conversation. See: https://www.thestreet.com/story/13689454/1/keeping-up-with-retirement-planning-while-caring-for-aging-parents.html