January is Financial Wellness Month

 

When we talk about wellness, we typically mean physical and mental health and happiness. However, there is another type of wellness that impacts caregivers and it has to do with financial wellness.

January is Financial Wellness Month and Caregiving Club focuses on how to help caregivers avoid what we call the “Caregiving Cost Drain.” A study conducted by the National Alliance for Caregiving and Evercare found more than half of all caregivers spend on average 10 percent of their annual income on care-related costs for their loved one – $400 more than the average American spends annually on entertainment and health care combined. Last year’s study by Merrill Lynch and Agewave, showed that 92 percent of all caregivers are also “financial caregivers.”

A great resource for caregivers who want to plan ahead, Genworth’s annual “Cost of Care” survey shows state-by-state costs for long-term care skilled nursing facilities, assisted living, dementia care, adult day care and in-home care.

Read more:

For more reading, check out our CEO Sherri Snelling’s articles and interviews below:

What financial guru Suze Orman learned caring for her mother (originally published on Forbes.com)

How to Avoid the Goldilocks Syndrome  (originally published on Forbes.com)

How to avoid the caregiving wallet drain (originally published for USA Today)

Tax Rules for Caregivers (originally published on PBS Next Avenue)

Watch more – Me Time Monday:

In addition, you can watch our Me Time Monday videos on caregiving costs and how to start the caregiving conversation with your loved one so you know what costs you might be facing.

 

 

 

Suze Orman Shares Her Cost of Caregiving Story

Sherri Snelling talked to America’s financial goddess, Suze Orman, and found when it comes to caregiving, we all face challenges with money. Read Suze’s story as caregiver to her mom and what she learned about the costs of long-term care. You can also read this article on on Forbes.com and PBS Next Avenue.org.

Suze Orman’s $25,000 a Month Cautionary Tale – Your Parent’s Long Term Care Can Cost You

100010081-suze-orman-headshot-2013.240x240Suze Orman has been called a “force in the world of personal finance,” was recently named one of the Top 10 most influential celebrities by Forbes magazine and is the single most successful fundraiser in the history of Public Television.  Yet even with the award-winning TV show, best-selling books, numerous accolades and worldwide influence as a guru of empowering people to save for retirement, get out of debt and have a healthy relationship with money, Orman admits she was as unprepared as the rest of us for becoming a caregiver for her late mother.

It was just a few years ago when Orman realized the harsh, brutal winters of her Chicago hometown were talking a toll on her mother, Ann, who was in her 90s. Her mom was becoming more and more isolated – living alone and not venturing outside.

“She just stayed at home and wouldn’t go out for months on end,” Orman told me.  While Orman lived in San Francisco at the time, her brothers were closer – one in Chicago where he picked up their mother for Sunday dinners – but it wasn’t enough to maintain their mother’s spirits and health according to Orman.

After a family discussion about Ann’s long-term care, Orman made the difficult and rare decision to not only move her mom to an assisted living facility in Florida, but Orman pulled up stakes herself and with her wife left their beloved Bay Area home to move to Florida to be there daily with her mom.

A decision to move because of caregiving is not only emotionally difficult but may be financially impossible for most Americans.  More than eight million of the nation’s 65 million caregivers live long-distance – defined as two hours or more away – from their loved one according to the non-profit Caring From a Distance. Genworth which conducts an annual survey of long term care costs for nursing homes, assisted living facilities and in-home care issued a report, Beyond Dollars – The True Impact of Long-Term Caring,  finding 42 percent of caregivers moved their older parent into their home for three years or more to care for them and off-set in-home care costs.

What was truly unique and brilliant about Orman’s plan is SHE moved into the assisted living facility with her mom for the first week to help her mom adjust and settle into her new home.

“I looked at it like the first day of school – you want to ease your parent’s transition to something new and I wanted to see firsthand how things ran,” explains Orman.  “It’s one thing to make an initial VIP visit to a facility, it’s another to wake-up and have breakfast in the dining room with everyone else and experience the daily routine.” Orman chuckles as she remembers residents and staff wondering why Suze Orman was living in assisted living but the experiment helped her understand the realities of long-term care.

The Real Costs of Care

Photo courtesy of Suze Orman

Photo courtesy of Suze Orman

While Orman’s mom agreed to the move and new living accommodations, Orman says she had not been successful in getting her mom to discuss and select a long-term care plan that would have covered these costs. According to the Department of Health and Human Services, at least 70 percent of people over 65 will eventually need long-term care, either at home or in a nursing home, an expense that will not be completely covered by Medicare, a fact lost on most unaware Americans. A great resource for caregiver education on long-term care is the web site operated by the Administration on Aging which outlines long-term care benefits, services and who pays for what.

“I filled out the paperwork on long-term care plans and gave it to my mom on several occasions but she never signed them,” laments Orman.  She believes it is the typical response of parents, particularly mothers, to not want their children, no matter how adult or capable, to worry about them.  Yet, ultimately without a good long-term care plan or robust savings, the financial burden will fall to the caregiver.

“I spent $25,000 a month the last two years of my mom’s life to have around-the-clock care for her and I was lucky because I was in a position to afford the cost – something most Americans cannot do,” cautions Orman.

Last year the Commission on Long-Term Care, a task force created by Congress to address the gaps when the CLASS Act (Community Living Assistance and Services and Supports) long-term care program (which was championed by former Senator Edward Kennedy) was repealed, issued a summary of recommendations recognizing the tremendous financial burden on families to adequately address our nation’s long-term care costs. However, no specific remedies or solutions were spelled out frustrating many in the aging organization network.

In response to the Commission’s recommendations, Howard Bedlin, vice president of Public Policy & Advocacy for the National Council on Aging, said in a statement, “Medicare does not cover long-term care, private insurance is unaffordable or unavailable to the vast majority of Americans, and individuals and families are forced to spend-down their life savings into poverty before getting help from Medicaid. It is now time for Congress to stop ignoring the problem and take action. Far too many members of Congress are out of touch with the enormous challenges faced by millions of middle-class families struggling to afford long-term care services needed to stay at home and out of institutions and relieve the tremendous economic, physical, and emotional burdens of caregiving.”

As Suze Orman learned in her own caregiving experience, the emotional and financial burdens for long term care of our elder population can fall squarely on the shoulders of family caregivers.  She advises caregivers to avoid living in denial of this situation today because it may destroy your financial stability tomorrow.  Or as Orman succinctly told me, “It’s easy to die, it’s hard to age.”

Suze’s Sage Financial Advice for Caregivers

Bucketful of Cash dreamstime_xs_13109928 (2)Orman has now counseled other family members, including her aunt and uncle, to secure long-term care plans. Her advice is if you can afford the premiums and you can make a promise to yourself to continue to pay into the plan even after 10 years, then it is a wise financial move.

Since January is Financial Wellness Month, I asked Orman to provide some savvy financial advice for caregivers. A great help is to check out Suze’s financial planning tools, “Must Have Documents” on her web site as well as these tips:

  • Buy only what is affordable. Do not stretch to buy a policy that covers 100 percent of anticipated future costs. It is far smarter to buy the amount of coverage for which you are sure you can keep making the premium payments. It makes no sense to buy a policy today that you will have to abandon in a few years because it is too expensive; you will get no benefit if that happens. Focus on what is safely achievable: Better to buy a policy that will cover 25 to 50 percent of future costs than no policy at all.
  • Insist on an inflation adjustment. The cost of care rises each year; you need a policy whose benefit will also increase. Given the above-average inflation rate for health services, look for a 5 percent annual inflation adjustment.
  • Aim for the shortest possible elimination period. This is the time before your policy kicks in; for example, if you have a 30-day elimination period, you’d pay for your first 30 days of care out of pocket. The shorter your elimination period (30 days is a typical minimum), the pricier the policy. If it’s 90 days or longer, make sure you have other assets that you could use to pay for your care for that length of time.

You can find more costs of caregiving and financial tips/resources in Sherri’s book, A Cast of Caregivers – Celebrity Stories to Help You Prepare to Care.

CastofCaregivers Cover FINAL

Celebrity Spotlight – Suze Orman on Financial Planning for Long Term Care

In January we highlight Financial Wellness Month and who better to capture “financial wellness” than the guru of saving money – Suze Orman? Our CEO, Sherri Snelling, interviewed Suze for Forbes about her insightful story in dealing with her mother’s long-term care costs and having the conversation on caregiving.

Read Suze’s story here:

What Suze Orman Learned Caring for Her Mother

Watch more:

We also offer two videos from our Me Time Monday video archives that provide insights into the costs of caregiving and how to start the caregiving conversation with our loved ones to avoid what we call the “caregiving cost drain”

 

Suze Orman’s Lessons Learned on Long Term Care

Sherri Snelling talked to America’s financial goddess, Suze Orman, and found when it comes to caregiving, we all face challenges with money. Read Suze’s story as caregiver to her mom and what she learned about the costs of long-term care. You can also read this article on on Forbes.com and PBS Next Avenue.org.

Suze Orman’s $25,000 a Month Cautionary Tale – Your Parent’s Long Term Care Can Cost You

100010081-suze-orman-headshot-2013.240x240Suze Orman has been called a “force in the world of personal finance,” was recently named one of the Top 10 most influential celebrities by Forbes magazine and is the single most successful fundraiser in the history of Public Television.  Yet even with the award-winning TV show, best-selling books, numerous accolades and worldwide influence as a guru of empowering people to save for retirement, get out of debt and have a healthy relationship with money, Orman admits she was as unprepared as the rest of us for becoming a caregiver for her late mother.

It was just a few years ago when Orman realized the harsh, brutal winters of her Chicago hometown were talking a toll on her mother, Ann, who was in her 90s. Her mom was becoming more and more isolated – living alone and not venturing outside.

“She just stayed at home and wouldn’t go out for months on end,” Orman told me.  While Orman lived in San Francisco at the time, her brothers were closer – one in Chicago where he picked up their mother for Sunday dinners – but it wasn’t enough to maintain their mother’s spirits and health according to Orman.

After a family discussion about Ann’s long-term care, Orman made the difficult and rare decision to not only move her mom to an assisted living facility in Florida, but Orman pulled up stakes herself and with her wife left their beloved Bay Area home to move to Florida to be there daily with her mom.

A decision to move because of caregiving is not only emotionally difficult but may be financially impossible for most Americans.  More than eight million of the nation’s 65 million caregivers live long-distance – defined as two hours or more away – from their loved one according to the non-profit Caring From a Distance. Genworth which conducts an annual survey of long term care costs for nursing homes, assisted living facilities and in-home care issued a report, Beyond Dollars – The True Impact of Long-Term Caring,  finding 42 percent of caregivers moved their older parent into their home for three years or more to care for them and off-set in-home care costs.

What was truly unique and brilliant about Orman’s plan is SHE moved into the assisted living facility with her mom for the first week to help her mom adjust and settle into her new home.

“I looked at it like the first day of school – you want to ease your parent’s transition to something new and I wanted to see firsthand how things ran,” explains Orman.  “It’s one thing to make an initial VIP visit to a facility, it’s another to wake-up and have breakfast in the dining room with everyone else and experience the daily routine.” Orman chuckles as she remembers residents and staff wondering why Suze Orman was living in assisted living but the experiment helped her understand the realities of long-term care.

The Real Costs of Care

Photo courtesy of Suze Orman

Photo courtesy of Suze Orman

While Orman’s mom agreed to the move and new living accommodations, Orman says she had not been successful in getting her mom to discuss and select a long-term care plan that would have covered these costs. According to the Department of Health and Human Services, at least 70 percent of people over 65 will eventually need long-term care, either at home or in a nursing home, an expense that will not be completely covered by Medicare, a fact lost on most unaware Americans. A great resource for caregiver education on long-term care is the web site operated by the Administration on Aging which outlines long-term care benefits, services and who pays for what.

“I filled out the paperwork on long-term care plans and gave it to my mom on several occasions but she never signed them,” laments Orman.  She believes it is the typical response of parents, particularly mothers, to not want their children, no matter how adult or capable, to worry about them.  Yet, ultimately without a good long-term care plan or robust savings, the financial burden will fall to the caregiver.

“I spent $25,000 a month the last two years of my mom’s life to have around-the-clock care for her and I was lucky because I was in a position to afford the cost – something most Americans cannot do,” cautions Orman.

Last year the Commission on Long-Term Care, a task force created by Congress to address the gaps when the CLASS Act (Community Living Assistance and Services and Supports) long-term care program (which was championed by former Senator Edward Kennedy) was repealed, issued a summary of recommendations recognizing the tremendous financial burden on families to adequately address our nation’s long-term care costs. However, no specific remedies or solutions were spelled out frustrating many in the aging organization network.

In response to the Commission’s recommendations, Howard Bedlin, vice president of Public Policy & Advocacy for the National Council on Aging, said in a statement, “Medicare does not cover long-term care, private insurance is unaffordable or unavailable to the vast majority of Americans, and individuals and families are forced to spend-down their life savings into poverty before getting help from Medicaid. It is now time for Congress to stop ignoring the problem and take action. Far too many members of Congress are out of touch with the enormous challenges faced by millions of middle-class families struggling to afford long-term care services needed to stay at home and out of institutions and relieve the tremendous economic, physical, and emotional burdens of caregiving.”

As Suze Orman learned in her own caregiving experience, the emotional and financial burdens for long term care of our elder population can fall squarely on the shoulders of family caregivers.  She advises caregivers to avoid living in denial of this situation today because it may destroy your financial stability tomorrow.  Or as Orman succinctly told me, “It’s easy to die, it’s hard to age.”

Suze’s Sage Financial Advice for Caregivers

Bucketful of Cash dreamstime_xs_13109928 (2)Orman has now counseled other family members, including her aunt and uncle, to secure long-term care plans. Her advice is if you can afford the premiums and you can make a promise to yourself to continue to pay into the plan even after 10 years, then it is a wise financial move.

Since January is Financial Wellness Month, I asked Orman to provide some savvy financial advice for caregivers. A great help is to check out Suze’s financial planning tools, “Must Have Documents” on her web site as well as these tips:

  • Buy only what is affordable. Do not stretch to buy a policy that covers 100 percent of anticipated future costs. It is far smarter to buy the amount of coverage for which you are sure you can keep making the premium payments. It makes no sense to buy a policy today that you will have to abandon in a few years because it is too expensive; you will get no benefit if that happens. Focus on what is safely achievable: Better to buy a policy that will cover 25 to 50 percent of future costs than no policy at all.
  • Insist on an inflation adjustment. The cost of care rises each year; you need a policy whose benefit will also increase. Given the above-average inflation rate for health services, look for a 5 percent annual inflation adjustment.
  • Aim for the shortest possible elimination period. This is the time before your policy kicks in; for example, if you have a 30-day elimination period, you’d pay for your first 30 days of care out of pocket. The shorter your elimination period (30 days is a typical minimum), the pricier the policy. If it’s 90 days or longer, make sure you have other assets that you could use to pay for your care for that length of time.

You can find more costs of caregiving and financial tips/resources in Sherri’s book, A Cast of Caregivers – Celebrity Stories to Help You Prepare to Care.

CastofCaregivers Cover FINAL

PBS Next Avenue Articles

PBS Next Avenue together

Following are all of Sherri’s articles for PBS Next Avenue:

17 Essential Books for Caregivers

90-Year-Old Billionaire David Murdock Doles Out Advice

Alzheimer’s App Uses Singing to Boost Mood

Alzheimer’s Epidemic Hits Women Hardest

Are You a Caregiver or Just a Good Child? (Sherri Snelling quoted in article)

Can caregiver guilt be good for you?

Caregiver Tipping Points

Caregivers of 9/11 – Cancer and PTSD New Challenges for Survivors

Caring for Her Blind Husband Challenged Her Marriage

Casey Kasem’s Legacy for Caregivers

Dark Side of Caregiving – Elder Abuse News

Difference in Caring for Moms versus Dads

The Emmy Awards We’d Give – TV’s Best Caregivers (2012)

The Emmys We’d Award – TV’s Best Caregivers (2013)

Employers must do more to support working caregivers

Finding Affordable Home Care for Your Parents (Sherri Snelling quoted in article)

First U.S. Dementia Village

For Caregivers, New Tracking Technology Offers Peace of Mind

Fran Drescher on cancer and 3 tips for caregivers (PBS 2015)

Glen Campbell’s Farewell Tour

Healing Power of Pet Therapy

Help Your Parents Join the Aging in Place Revolution (Sherri Snelling quoted in article)

Holly Robinson Peete’s Most Challenging Role – Sandwich Generation Caregiver

How Online Volunteers Support Caregivers

How Strong is Your Living Will? (Sherri Snelling quoted in article)

How to Avoid the Goldilocks Syndrome

How to Care for Your Parent Without Losing Your Job (Sherri Snelling quoted in article)

How You Can Combat the Senior Hunger Crisis

Joan Lunden on challenges of guilt and caregiving

Kimberly Williams Paisley Chronicles Her Mother’s Dementia

Latest report shows rise in male caregivers

Meet the Hall of Fame Caregiver Who Changed the NFL

Moving Together to Prevent the Risk of Falls

New Report Highlights Stress of Long Distance Caregiving

Norman Lear – Longevity, Laughter, Love of America

The Osmond Family’s Greatest Act – Winning the Daily Battle Against MS

Patient Navigators – New Help for Caregivers

PBS Powerful Expose on Assisted Living (Sherri Snelling quoted in article)

Rise of Men as Caregivers

Robots vs. the Real Thing in Pet Therapy

Rosalynn Carter – A Pioneering Caregiving Advocate Says More Must be Done

Seth Rogen Getting Millennials to Care About Alzheimer’s

The Sibling Caregiver

Social Media Dangers for the Modern Caregiver

Suze Orman’s Lessons Learned on Long Term Care for Her Mom

Tax Rules for Caregivers

A Victory for Alzheimer’s Patients and Caregivers (Sherri Snelling quoted in article)

The Village Movement – Redefining Aging in Place

Virtual Reality Is A Caregiver’s Empathy Machine

Waltons reboot – multigenerational living is back!

Want to Live Longer?

What Lies Ahead for the Nation’s Caregivers?

What Parents of Wounded Veterans Need

What We Can Learn from Brittany Maynard’s Death

What’s Next in Caregiver Technology

What’s Your Caregiving IQ?

When the Old Care for Their Children

When Parents Face Driving Retirement – Alternative Senior Transportation

Why Caregivers Need to Plan for the Worst – Emergency Preparedness

Why Laughter is Crucial for Caregivers

Why You Need to Make Your End-of-Life Wishes Known

Why and When Denial is Good for Caregivers

Forbes Articles

Forbes

Following are Sherri’s articles for Forbes.com:

Alzheimer’s Epidemic Hits Women Hardest

B. Smith & Dan Gasby on Alzheimer’s

Caregiving is a Corporate Issue

Caregiver Tipping Points

Casey Kasem’s Legacy for Caregivers

Dark Side of Caregiving

David Murdock – 90-year-old billionaire and caregiver

First U.S. Dementia Village

Goldilocks Syndrome

Latest report shows rise in male caregivers

Multigenerational Living is Back and It’s a Good Thing

Nancy Reagan’s Passing

A New Era – Companies Supporting Caregivers

Rise in Men as Caregivers

Sandwich Generation Juggling Act

Sept 11th 15 Years Later – New Health Crisis

Social Media Dangers for the Modern Caregiver

Using Virtual Reality To Get Inside an Ailing Person’s World

What Suze Orman :earned Caring for Her Mother

Suze Orman’s Lessons About Long Term Care After Caring for Her Mom

Suze Orman and mom AnnAmerica’s financial guru, Suze Orman dispenses expert advice via TV, radio, her books and her Web site on how to manage your money and make it work for you.  But when she became a caregiver to her mother, she learned even experts encounter challenges that can cost you.  Read Sherri’s interview with  Suze Orman appearing on Forbes.com and PBS NextAvenue.org on what you may not know about long term care.

Celebrity Spotlight

Caregiving Club CEO, Sherri Snelling, interviews celebrities from movies, TV, Broadway, sports, news, music and politics who are or have been a family caregiver.

In November we honor all the nation’s caregivers – those caring for older parents or family members, those caring for spouses, those caring for siblings or special needs children and those caring for friends — with special interviews all month long.

Read all the celebrity interviews by clicking here.