Financial Caregiving 101

Jeremy Nachtigall • Apr 06, 2021

If you manage the general spending activities or other financial related activities of your aging loved one, then you are a financial caregiver. You are typically involved with, or responsible for, at least one of the following on behalf of your aging loved one:

  • Bill paying
  • Making or monitoring bank deposits
  • Communicating with utility companies
  • Calling insurance companies
  • Filing and tracking insurance and benefit claims
  • Reviewing financial documents 
  • Preparing tax documents

If you are doing some or all of these things and feel like you just don't have time to do everything, help is on the way! Here is a list of recommendations that will help you feel more organized and calm.


Start Your Financial Planning Now, Before an Emergency Arises


I have always said, inaction is the worst action. Be prepared. My mom spent 79 years healthy and active until she was stricken with ALS (Lou Gehrig’s Disease), which left her completely paralyzed. Be prepared because life can change overnight - trust me, I know. That is the first and most important piece of advice. Take the time now to get organized and define exactly what you will be doing with or on behalf of your aging loved one. If the thought of this is overwhelming and you don’t have the time, hiring a daily money manager will save you a lot of frustration. Preparation will be critical in the event of an emergency, especially when fast decisions or finding information quickly is required.


To be prepared, consider these tips:


Make Sure You Have Immediate Access to Important Financial Documents                                                                         

As your parents get older it will become important for you to make sure you keep their critical financial documents organized. Obtaining and retaining these documents will give you the information you need to protect your parents’ assets. However, how do you know which documents are essential for you to have? For more guidance, see the blog section on our website. Here is a list of general categories:


  • Essential records
  • Financial documents
  • Legal documents
  • Insurance information
  • Important contacts
  • Passwords

 

Get Access To All Financial Accounts (Checking, Savings and Investments)


To write checks or withdraw funds, you need to be able to access checking accounts and should most likely be named on the account as well. It’s also very important that you have a financial POA to be able to access information and act on behalf of your loved one. This kind of information will be especially helpful if you provide long-distance caregiving support because you will then be able to access accounts online and over the phone.


Have Important And Recurring Bills Set Up as Automatic Payments


Direct deposit and paperless billing is often safer and easier to track than a paper check and pages upon pages of bills and inserts, etc. Arrange for water, electric, health insurance, mortgage, and other recurring payments to be set up as automatic debits. This can usually be done with the merchant or service provider or this can be done directly with the bank. Not only will this ensure the payments occur on time, but automatic payments can sometimes save you money by up to a few percentage points. It’s also a good idea to link the bill payments to an account where there will always be funds available. For example, your recurring bill paying could be linked to an account that is funded with regular Social Security payments or investment income.


These are only a few tips on how to make your financial caregiver journey easier. For more information, please read more of the information on our website.

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