The Cash family, like many families, have put off discussing important issues regarding their aging parents, even though that discussion has financially significant implications. However, proactive multi-generational planning can often lead to wise long-term decisions. In this planning scenario, we have the following planning assumptions:
- The couple, both 70 years old, are quite active and healthy and receive a pension and Social Security that meets their income needs.
- They are concerned about burdening the children/grandchildren and would “pay for care” with untapped $600,000 in retirement accounts, which Carol also sees as "legacy assets" to be passed on to their children/grandchildren.
- The couple must begin taking Required Minimum Distributions (RMD) soon, and their CPA indicates total RMDs for the couple will exceed $22,000.
- Their HALO Assessment projects a 6-year, $7,500 per month combined need for care, likely to begin well into their nineties.
Quantify how much care will be needed, the type of care, and how much that care will cost you or your family.