You may have a colleague who is living and working with a disability, but you just don’t know it. In fact, the U.S. Census estimates that, as of 2022, about 44 million U.S. civilians are living with a disability.
Developmental Disabilities Awareness Month in March should serve as a reminder that there are many kinds of physical and mental disabilities that are not visible.
Saving and planning for expenses related to disabilities can be challenging. Some disabilities are progressive, where future expenses may be much higher than a person is incurring in the present. Others may live with a disability where new therapies or treatments are not yet covered by insurance.
Consider ABLE accounts.
With an Achieving a Better Life Experience account, clients are able to save and plan for qualified disability-related expenses in tax-efficient ways.
Financial professionals play a pivotal role in helping their clients, many of whom may be living and working with a disability or have a family member that does.
While an ABLE account could be beneficial, some might hesitate to ask a current or prospective client if they or someone they know is living with a disability as it can be a sensitive topic to broach.
Ask the right questions.
Consider the questions asked when having a holistic financial planning conversation or check-in with an existing client, or when getting to know the needs of a new one.
Along with questions about retirement plans, 529 education savings plans, trust accounts and tracking of investment goals, it is simple to include a question such as, “If someone in your family is living with a disability, have you considered setting up an ABLE account to help save and fund qualified-disability expenses?”
This is one way to open the door to a sensitive conversation with clients. If it applies to them, they can initiate a deeper conversation.
You don’t have to start with, “Do you or someone in your family have a disability?”
Rather, introduce them to the account type. Just like individual retirement accounts and 529 accounts, ABLE accounts are there to help with expenses for individuals with disabilities, whether physical or mental.
Think and plan for the long term.
A conversation about an ABLE account is especially relevant considering that the person living with a disability may at some point no longer have readily available caregivers.
Who better than a financial professional to help identify the specific needs of the situation and plan for support? An ABLE account is an important component of holistic, long-term financial planning and investing.
It is important to note that recently passed legislation will allow more persons living with a disability to benefit from ABLE accounts.
The ABLE Age Adjustment Act increases the age by which a disability must be diagnosed from the current 26to 46 starting Jan, 1, 2026. This will enable the expansion of ABLE account benefits to those who were either diagnosed or incurred a disability later in life.
ABLE accounts could make a meaningful difference in the lives of someone you know or a client with whom you work. Don’t hesitate to have the conversation. Now is the time to talk about it.
Rachel Ramos is vice president and senior product manager at Capital Group, which manages nearly $3 trillion trillion in equity and fixed income assets for millions of individuals and institutional investors.
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