Whether you're a RINK (retired, independent, no kids) or aDINK (dual income, no kids), you may find that building a nest egg forthe golden years isn't enough.
If you don't have children, you need to ensure that someonewill look out for your best interests should there come a time whenyour body starts to give out or you just can't take care of yourselfanymore.
You can pay for attorneys, accountants and financial plannersto watch your assets. Health care professionals can monitor your healthand people can be hired to cook and clean. But who's going tocoordinate your care, observe the people who are assisting you and makesure that your voice is heard and your wishes are respected?
We all need to think about these issues whether or not we havechildren. Today's mobile society provides little guarantee that grownchildren will live nearby. Even when they live in close proximity,family and job demands may limit the amount of time they have to devoteto an ailing parent. And, sadly, too often parents and children areeither estranged or have a dysfunctional relationship.
If you don't outlive your spouse, siblings and friends, youcan hope to rely on them, but it's a big plus to have someonephysically and mentally strong to deal with the issues and hassles thatmay arise. The bottom line is you should begin assembling a team ofprofessionals, friends and relatives. Let them know your wishes -- andput them in writing -- before you become dependent.
"People are afraid of doing this because they're afraid oflosing control," says Chris Cooper, a Certified Financial Planner basedin Toledo, Ohio. "They're not losing control; they're delegatingcontrol so that they stay in control. If you don't do it, control canbe taken away from you either by your own poor health or by a court."Cooper, who is also a nurse and holds a graduate degree ingerontology, founded ElderCare Advocates to assist clients who aredealing with long-term care planning and end-of-life issues."I oversee the services that they're getting -- moneymanagers, accountants, household employees, home health care andnursing home people and transportation. I help create the budgets tohelp pay for this," says Cooper."Long-term care begins when you can't do for yourself what youused todo for yourself. If you used to mow the lawn and now you can't, that'slong-term care. If you used to balance your checkbook and now youcan't, that's long-term care. People want to think of long-term care asthe day you go to a nursing home. If you get services sooner ratherthan later you'll reduce the potential of ever going in a nursing home."Cooper is a rare breed. Most financialplanners aren'tset up to handle everything that he does; but they can play a pivotalrole.
Building the teamRaymond Mignone, a CertifiedFinancial Planner in Little Neck, N.Y., and author of "RINKs --Retired, Independent, No Kids," says a good certified financial plannerwill have contacts with reputable estate and elder-law attorneys,long-term care insurance representatives and accountants. As a result,they can often coordinate what he calls the "money team.""The financial adviser can be thecoordinator. He's the one who has contact on a more regular basisbecause he's helping them manage their investments. But there's a second team, the emotionalteam. If you have brothers and sisters, then you have people who canhelp you, otherwise close friends," Mignone says. "They're the peoplewho will be there when you need them."Timingcan be everything because we never know when we might become disabledor even incapable of expressing our wishes. Once you begin acquiringassets, consider assembling your financial team. Among other things,someone should be given power of attorney for financial matters. Youdecide whether their power will be broad-based or limited.Key members of your emotional team shouldalso be asked early on if they would mind handling certain dutiesshould you become incapacitated, as someone should be named to makehealth care decisions.
Recruiting team membersSome team members may not needto be recruited as early as others. As you age it's important to thinkabout the various areas where you may want assistance and then bringthem into the plan, says Erika Safran, principal at Financial AssetManagement Corp., in New York."Whenyou're in your mid 60s and early 70s and you're well, tell people whatyou'd like to do. I need someone to accompany me on doctor visits. Isthere a service, an outlet, a social worker who is available for this?There are companies that do that. It's the equivalent of renting anadult child. They will check on people who live alone and they willtake them to the doctor. It's these small quality of life issues. Who'sgoing to interpret what the doctor says?"Geriatric care managers can provide manyneeded services, including accompanying a client to the doctor. Theprofession has been around for quite some time, but the huge upswing indemand, as the baby boomer generation ages, is showing the need forcertification standards."The geriatric care managers' professionis not well-defined and there are no state laws governing it," saysCooper. "You might have a nurse's aide acting as a care manager or youmight have a social worker with a master's degree acting as one. Thereare no real standards and that's where the problem is."
The NationalAssociation of Professional Geriatric Care Managersis trying to change that, according to director Debra Levy. In 2006,members voted to require that all new members hold one of four approvedcertifications: Care Manager Certified (CMC), Certified Case Manager(CCM), Certified Advanced Social Work Case Manager (C-ASWCM) and/orCertified Social Work Case Manager (C-SWCM). All current members musthold one of the certifications by Jan. 1, 2010. "It'snot that difficult to hang out a shingle and say you're a caremanager," Levy says. "We want to contribute to the quality of theprofession. Finding help"Most major cities havegeriatric care managers (from the association). They're health andhuman services experts, social workers and registered nurses. Some havebackgrounds in counseling or gerontology. We do a comprehensiveassessment of their needs in their home, nursing or assisted-livingfacility. We consider physical, medical and psychological (needs) andwe see if there are legal or financial matters that are not in place.We suggest a plan of care and then most of the time we're hired toimplement the plan."Feesfor services vary, but the comprehensive assessment runs $300 to $800,according to Levy. Ongoing care ranges from $80 to $200 an hourdepending on the complexity of the care and the region of the country.Long-term care insurance may cover costs, but Medicare and traditionalhealth insurance plans do not.
Doctors,especially those specializing in the elderly, should also be able toassist with assessments and referrals to qualified care managers. Youcan also search the NAPGCM databasefor care managers that belong to the organization. Be sure to checkcredentials before hiring anyone. Another source for information aboutgeriatric care managers is HelpGuide.org.Bankrate.comis the Web's leading aggregator of information on financial productsincluding mortgages, credit cards, new and used automobile loans, moneymarket accounts, certificates of deposit, checking and ATM fees, homeequity loans and online banking fees. Visit Bankrate.comto get the tools and information that can help you make the bestfinancial decisions.
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