How to Discuss Caregiving Costs with Investment Clients

Discussing Caregiving Costs with Your Investment Clients is Tricky. Learn these 5 Tips to Help Navigate this Sensitive Subject.


investment-clients-caregiving-costsAs people continue to live longer, many people are taking into consideration the costs that are associated with medical and long-term care not only for themselves, but for those they love. As a wealth management advisor, costs associated with longevity and caregiving are important topics to discuss with clients. Every chronic illness comes with its share of emotional, physical and financial challenges and costs, and diseases like Alzheimer’s can be particularly difficult. According to a MetLife Mature Market Institute Survey, private nursing facility costs for an Alzheimer patient averages around $7,500 per month! With exorbitant expenses related to health care in one’s later years, investment clients must take financial planning for caregiving challenges into consideration.


One of the top questions you may receive from clients regarding caregiving and the costs associated with it is how to prepare beforehand. It is never too early for clients to consider various scenarios that can potentially occur regarding family members. For instance, a client may foresee his or her parents moving into their home at some point in the future. This may require remodeling changes or retrofitting of the home, or it might require the help of a part time nurse. Another client may live far away from his or her family, but wants to be financially secure so the loved one can be properly taken care of in their hometown. That particular client will need to consider the costs associated with getting care for their loved one, traveling to oversee things, taking time off from work, etc. Because long-term and elder care are important topics as longevity increases, here are a few tips on how to approach the subject with clients:


  1. Remember to approach the subject with sensitivity. This may be an uncomfortable topic for some but you can explain how important it is to have. With the U. S. Department of Health and Human Services estimating 70 percent of people turning 65 needing a form of long-term care at some point, planning beforehand assures their loved one can be well taken care of if and when the time comes.


  1. Keep things on a positive note. You can do this by sharing a success story of a client who planned for potential what-ifs and was in a secure situation when the money was needed.


  1. If there is no long-term care insurance, you can discuss assets available of the client’s loved one. These assets can be vital when it comes to finding money to pay for caregiving expenses in the future. Using these assets to defray costs prevents the clients from tapping into his or her own retirement and investments.


  1. Encourage your client to familiarize him or herself with Medicaid and Medicare to learn what is and is not covered when it comes to long-term care. Knowing what isn’t covered is another great tool when it comes time to plan for caregiving costs.


  1. Discuss the possibility of the client having to transfer management of a loved one’s finances over to him or herself. Also, be sure to share information on a Trusted Individual Retirement Account, if applicable to your client.


In closing, you should consider when may be a good time to have this conversation with your wealth management clients. Be sure to discuss potential future costs of caregiving, if long-term insurance is an option, and if your client will need to become a trustee for his or her parents. Caregiving is not an easy job and comes with a myriad of stressors. Helping your clients become financially prepared can make a huge impact on decreasing stress if the time comes when extra help is needed.


To learn more wealth management tips for your investment clients, be sure to visit Summit Brokerage Services has been voted the #1 boutique independent broker dealer in the country. Let us show you why! To experience the Summit difference, learn more about our network of independent financial advisors, and begin creating your financial planning documents, visit or call us at (800) 354-5528.


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About Summit Brokerage Services, Inc.

Summit Brokerage Services is part of Cetera Financial Group. Summit Brokerage provides a broad range of securities brokerage and investment services to primarily individual investors. Summit Brokerage also sells insurance products, predominantly fixed and variable annuities and life insurance through its subsidiary, SBS Insurance Agency of Florida. Summit Brokerage also provides asset management services through its investment advisor, Summit Financial Group, Inc.


About Cetera Financial Group

Cetera Financial Group® (“Cetera”) is a leading network of independent retail broker-dealers empowering the delivery of objective financial planning advice to individuals, families and company retirement plans across the country through trusted financial advisors and financial institutions.  Cetera is the second-largest independent financial advisor network in the nation by number of advisors, as well as a leading provider of retail services to the investment programs of banks and credit unions.

Through its multiple distinct firms, Cetera offers independent and institutions-based advisors the benefits of a large, established broker-dealer and registered investment adviser, while serving advisors and institutions in a way that is customized to their needs and aspirations.  Independent financial advisor support resources offered through Cetera include award-winning wealth management and financial planning and advisory platforms, comprehensive broker-dealer and registered investment adviser services, practice management support and innovative technology.  For more information, visit

*”Cetera Financial Group” refers to the network of retail independent broker-dealers encompassing, among others, Cetera Advisors, Cetera Advisor Networks, Cetera Financial Institutions, Cetera Financial Specialists, First Allied Securities, Girard Securities, The Legend Group and Summit Brokerage Services.

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