FOR IMMEDIATE RELEASE
Washington, DC, Aug. 11, 2014 — Like many 50-somethings, Dave Beck is a member of the sandwich generation.
“That means I am caring for my aging parents while supporting my own children—a situation lots of us are in now, or will be one day,” says the partner and insurance agent at the Northern Virginia financial services firm Egan, Berger & Weiner, LLC.
From his vantage point, Beck sees up-close the importance of planning ahead for the inevitability of aging.
“When I talk with my clients about planning for the future, their number one concern—almost unanimously—is to avoid being a burden on their loved ones as they age. What they don’t often realize is that by not taking the proper precautions, there is a real possibility that they will be a burden to all of the above,” insists Beck, who offers the following suggestions.
1. Talk to a lawyer. “An attorney is probably the most important person in the whole elder-care planning process,” he says. Among the documents an attorney may help prepare are:
- durable general power of attorney (financial)
- durable health-care power of attorney
- medical directives
“I have learned this the hard way as I have gone through struggles with my own elderly parents,” says Beck. “Since a health-care power of attorney was not prepared while my mother was able, it cost about $4,000 for the courts to decide that I am worthy to make those decisions for her. Be sure to have these documents in your hands—before you need them. They are critical to being prepared to take care of, or be, an elderly parent.”
2. Meet with a financial advisor. It is essential to figure out how to pay for the long-term care services that might be needed, based on one’s end-of-life desires. It is also important to communicate those desires to family members and convey them in legal documents.
If your plan is to self-insure the risk (i.e., pay for medical and legal costs out-of-pocket), there needs to be some planning ahead in your financial retirement plan to determine what impact, if any, that might have on your retirement lifestyle—especially if you predecease your survivors.
3. Consider long-term care insurance. While not for everyone, insurance makes good financial sense for some, Beck says. “Many people believe they will be able to pay any long-term care costs themselves, but the reality is that it is difficult to save enough money for an average-length stay in a nursing home without making dramatic lifestyle changes today.” For example:
- Nursing homes run about $90,000 per year for full-blown care, so for an average stay of 2.7 years, the average cost for nursing-home care would be about $243,000 in today’s dollars.
- Based on the current average annual increase of 4.7 percent for nursing home costs, in 30 years the average nursing home stay would cost in excess of $1 million.
“This is a brief glimpse of some of the things that you might want to consider to plan ahead for the care of an elderly parent—and for your own years as a senior citizen,” says Beck. “As Confucius said, ‘A journey of a thousand miles begins with the first step.’ So please, take that first step and start planning. I know from experience that you and your family will not regret it.”
Questions? Contact Dave Beck at email@example.com.
About David F. Beck
- Partner of Egan, Berger & Weiner, LLC
- More than 26 years in the financial services industry, with a primary focus on insurance planning
- More than 15 years of experience working for two of the largest insurers in the United States
- Six years as the principal in a private insurance agency
Beck is a a graduate of George Mason University, with a BS in Business Marketing and a minor in Economics. He resides in Woodbridge with his wife Linda. A former high school athlete, Beck plays softball and ice hockey in local leagues. He grew up in Springfield, VA, and is a staunch supporter of the Redskins, Capitals, and Wizards.
About Egan, Berger & Weiner, LLC
Egan, Berger & Weiner, LLC is an independent financial services firm based in Northern Virginia. Its associates have decades of experience in helping clients plan ahead for retirement. For more information, visit EBW’s Financial News for insights on making financial decisions.
To learn more about EBW’s financial planning services, visit www.ebwllc.com or call EBW at 703-506-0030.
_Securities and Investment Advisory Services offered through Voya Financial Advisors, member
SIPC. Egan, Berger & Weiner, LLC is not a subsidiary of nor controlled by Voya Financial Advisors._