Squeezed by Competing Needs

   Have you ever imagined yourself as a floppy magazine jammed between two heavy bookends?

At a time when middle-aged couples should be saving for their own retirements, many are squeezed by competing financial needs.  Having started families later than past generations, their children may just now be entering college or still living at home.  At the same time, aging parents might need financial assistance.   It is a dilemma that is likely to become more common.  Perhaps this is already affecting you.

Caring for parents

   As life expectancies continue to increase, it becomes increasingly likely that you might need to help an aging parent.  Some financial precautions you can take now include:

•  Investigate long-term-care insurance for your parents.  If they can’t afford the insurance, you might want to purchase it for them.

•  Have your parents prepare a complete listing of their assets, liabilities, and income sources, including the location of important documents.  This can save time, if you need to take over their finances.

•  Make sure your parents have legal documents in place so that someone can take over their financial affairs, if they become incapacitated.  They might also want to delegate health care decisions by way of a durable power of attorney and a health care proxy.

•  Understand the tax laws if you su ...