Planning Scenario #4

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.