By Barry Higgins
Many baby boomers are finding themselves in situations where they now have to take care of their parents. These parents, who may not yet be at a point where they have to move into an assisted living facility, need a great deal of support from their children.
“Think about all the different needs they have,” says Gary Rathbun, president of Private Wealth Consultants, Toledo, Ohio. “Taking them to the grocery store, taking them shopping, taking them to the airport and making sure they get on the plane, housing issues.”
Rathbun is seeing a great deal of interest from his clients on the topic of parental planning. “People want more advice on that part of their overall financial plan,” he says.
One of Rathbuns baby boomer clients is currently in a situation where hes supporting both of his parents, in addition to his wifes parents. Furthermore, he has to support his own family which consists of his wife and three children.
Advisors say boomers need to start planning ahead for these situations where their parents are still alive and likely are going to need some type of care and financial support.
“The demographics are changing and its becoming more of a concern as people are living longer,” adds Luke DeCandia, an agent with New England Financial in Fairfield, N.J.
“Were due for a paradigm shift in our planning,” notes Rathbun.
The solution to this problem comes down to money. “If youve got plenty of money, theres no problem that cant be fixed,” Rathbun explains. But, he adds, “The planning revolves around creatively filling that need for money.”