What is the best gift you can give to your family? Is it college education for a grandchild? Is it a paid family vacation for your children and their families?
Gifting to family members may be an important piece of your financial legacy plan. You may desire to gift to family members during your lifetime – when the financial support is needed or when you can observe the enjoyment of the gift.
The BEST gift, as it turns out, is for you to plan ahead for yourself. Your ability to ensure that you can fund your own financial independence and any future long-term care needs can provide more of an economic (an emotional) benefit to your family than a gift now.
- According to a recent MetLife study, Americans who take time off work to care for their aging parents are losing an estimated $3 trillion dollars in wages, pensions and Social Security benefits.
- A 2010 study by Fidelity Investment Research found that a 65 year-old couple that plans to live into their 90’s spends $250,000 to cover health care expenses, including Medicare premiums, co-pays, coinsurance and some home care costs. Note: This does NOT include chronic conditions or long term care costs.
Before significant gifting is done, it is important to do a realistic assessment of your ability to fund your own retirement and long-term care needs. Make sure that the proper documents and financial tools are in place to fund your needs now and later. Take the first step now and schedule a time to meet with your financial planner to discuss long term care planning.