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Christopher R. Hibbard, ChFC®, CRPC®, CFS®
Vice President, Wealth Management
Teachers Investment Services
Located at Teachers Federal Credit Union
5439 Sunrise Highway
Holbrook, NY 11741
Phone: 631-698-7000 Ext. 6020
Email: christopher.hibbard@lpl.com
CRPC conferred by College for Financial Planning.
January/February 2024
The High Cost of Senior Care
Do you care for a senior parent or another loved one? According to The National Alliance for Caregiving (NAC) and AARP, more than 50 million Americans are unpaid caregivers. On average, these caregivers pay 26% of their income and give 24 hours a week to help loved ones—often to their own financial and health detriment.*
Dual Problems
One financial problem many middle-income families face is that their loved one’s income disqualifies them from Medicaid services, and Medicare falls short on coverage for everything the person needs. Another is that caregivers ignore their own finances and jeopardize their continuing financial security. Some exhaust leave and vacation time and have to take unpaid time from work. Others quit working altogether. In addition, they may reduce or even stop retirement plan contributions to pay for their loved one’s care. The second problem is the mental stress and the physical exhaustion of caregiving.Possible Solutions
Tax Breaks — If your loved one lives with you, you may be able to claim them as a dependent on your tax return. Even if you can’t claim them as a dependent, you may be able to deduct the out-of-pocket care expenses you pay for them. To claim the deduction, those expenses, and your medical expenses, much exceed 7.5% of your adjusted gross income, and you must provide more than half your loved one’s support. Talk with your tax advisor.Employer Help — Talk to your employer about programs or benefits it may offer, such as flexible schedules, working from home, family leave programs, and dependent care flexible spending accounts. Each household may contribute up to $5,000 a year in 2024 ($2,500 married filing separately) to a dependent care account to use for the costs of caring for a dependent loved one. Your contribution is free from income tax, Social Security and Medicare taxes, and some states’ income tax.
Other Assistance — If your parent is a veteran, the U.S. Department of Veterans Affairs may help pay for some home health care following hospitalization. For your mental health and well-being, the Family Caregiving Alliance provides a guide to respite services in each state.
* Caregiving in the US, AARP and NAC, 2020, and Caregiving Out-of-Pocket Cost Study, AARP, 2021
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Christopher Hibbard is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Teachers Federal Credit Union (TFCU) and Teachers Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Teachers Investment Services, and may also be employees of TFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, TFCU or Teachers Investment Services. Securities and insurance offered through LPL or its affiliates are:
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