Special Needs Financial Planning | Parent’s Retirement
Shepherd Financial Partners is an independent, full-service financial and wealth management practice. Our goal is to provide you with superior, comprehensive financial and wealth management services in the context of a personal, long-term commitment.
Shepherd Financial Partners is an independent, full-service financial and wealth management practice. Our goal is to provide you with superior, comprehensive financial and wealth management services in the context of a personal, long-term commitment.
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Parent’s Retirement

Parent’s Retirement.

 

Retirement years.

 

It’s complicated to plan for two generations.

 

Typically, retirement planning involves establishing a regular savings plan to make certain that there is sufficient money available to maintain a lifestyle to which you and your spouse have grown accustomed.  In special needs planning, parents may have to delay their retirement date or make adjustments in their lifestyle, including the ability to travel or relocate, due to the needs of their child. Saving enough money to achieve retirement planning goals may be more challenging for families with special needs because one parent may need to remain at home with the child and forego access to employer- sponsored retirement plans and benefits.

View "Basic Steps of Special Needs Financial Planning"

Yes, Please!

UNIQUE PLANNING REQUIREMENTS

  • Create and maintain a current list of all of your assets and liabilities, including insurance policies, annuities and pensions.
  • Review your retirement plan beneficiaries with particular attention if you have named a special needs trust as beneficiary. Learn more.
  • Analyze the possibility of refinancing to lock in low interest rates and use your equity to plan for your child.
  • Analyze the pros and cons of deferring your social security payments.
  • If you are eligible for a pension, carefully analyze ALL options, this lifetime decision is permanent.
  • Make provisions to protect your assets in the event you will need long term care assistance.
  • Factor inflation into your planning.
  • Review your current life insurance program to be sure it meets your long-term family needs. Read more about insurance.
  • Have you determined the amount of money needed to provide for your child’s lifetime needs? Read more.
  • Revisit your expected retirement age and goals considering the changing employment environment, job security and health concerns.
  • Engage a CPA or CFP® to help determine the most appropriate strategy to withdraw money from your savings and investment accounts.
  • What is your residential plan for your child for their lifetime? Options including leaving your home to your child or funding a part-time or full-time residential program require properly executed legal and financial plans.
  • Residential planning: Moving out is not the only options, consider creating proper supports in your home and ultimately have the plan evolve as your circumstances change

Special Needs Planning Story

INDIVIDUAL CASE STUDY

Adam wanted to properly name his retirement account beneficiaries to reflect his intentions.  He intent was to name his wife, Justine, as his primary beneficiary and have his 3 children, Kyle, Alyssa and Alexia as contingent beneficiaries. On his beneficiary designation form he named Justine as his primary beneficiary.  He then named Kyle and Alyssa as contingent beneficiaries receiving 33% of the account and Alexia’s special needs trust, “The Alexia Special Needs Trust dated January 1, 2007”, as the third beneficiary receiving 34%. Naming Alexia directly could compromise her eligibility for government benefits.

READING ROOM

Below are a few articles relating to planning for your child at this stage.  For more information visit  WHAT WE’RE SAYING.

  • Retirement Accounts and Special Needs Trusts

    Retirement Accounts and Special Needs Trusts

    VIEW MORE
  • Prioritizing Goals for Your Child with Disabilities - Part II

    Prioritizing Goals for Your Child with Disabilities - Part II

    VIEW MORE
  • FAQs : Funding a Special Needs Trust

    FAQs : Funding a Special Needs Trust

    VIEW MORE

1 There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

2   Investing involves risk including loss of principal. No strategy assures success or protects against loss.