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Business Insider
21-07-2025
- Health
- Business Insider
7 lessons I learned about end-of-life planning when my mother died, as a financial advisor
This as-told-to essay is based on a conversation with Melissa Shaw, a 46-year-old financial advisor in Palo Alto, California. It has been edited for length and clarity. I've been a financial advisor since 2011 and have worked at Teachers Insurance and Annuity Association of America, or TIAA, as a wealth management advisor for over seven years. I help clients with estate and incapacity planning, but I encountered completely different issues when my own mother became terminally ill and I became her primary caregiver in October 2024. Her diagnosis was sudden. Doctors found stage four cancer that had metastasized to her back, causing a fracture. Within weeks, my family moved her from Las Vegas to Northern California to be closer to me. She died by the end of December — it was a two-month ordeal. Becoming her caregiver was emotionally intense Initially, she seemed fine, but she declined rapidly. It was shocking and unexpected. I visited the hospital daily and took on the bulk of decision-making responsibilities. Thankfully, TIAA offers generous caregiver benefits and flexibility, and I had savings to help cover unexpected costs. I've learned many valuable lessons through this experience about end-of-life planning. 1. Medicare supplemental plans are essential Since enrolling in Medicare at the age of 65, my mom opted for a Medigap (Medicare Supplement Insurance) plan instead of a Medicare Advantage plan, and that decision proved vital. Her Medigap plan covered 20% of medical costs that original Medicare didn't, including any doctor or procedure approved by Medicare, without referrals or prior authorizations. Every doctor she saw was relieved she had it. If you or a loved one is approaching 65 — especially with ongoing health issues — I strongly recommend researching Medigap options during the Medigap Open Enrollment Period, when insurers can't deny coverage or charge more due to pre-existing conditions. 2. Assign a designated healthcare decision-maker ASAP My mom didn't assign a designated decision-maker, and I couldn't make health decisions for her. When her health rapidly declined in the last three weeks of her life, she became barely cognizant and luckily was able to manage a scribbled signature for a necessary procedure. I started to prepare a POA and healthcare proxy, but by the time it was ready, she was no longer mentally competent enough to sign it. She signed an advanced directive form with the hospital when she started the cancer treatment, which allowed me to make some decisions on her behalf. I learned how imperative it is to name a health proxy at any age. 3. Banking may not be easily accessible After she died, we were unable to access her bank account funds for 45 days due to a waiting period intended to protect creditors. Luckily, she had a term life insurance policy that paid out quickly to help cover immediate expenses. Additionally, she didn't name a beneficiary for the bank accounts, which is a common mistake. Many assume that checking accounts don't need beneficiaries, but even modest balances may end up in probate, which can be a significant hassle. Also, the bank was unable to share her transaction history, so I had no way of knowing which bills had already been paid. 4. Sign up for life insurance We received her life insurance proceeds quickly; all that was required was a death certificate. Clients may want to consider insurance as a liquidity measure at death to cover immediate expenses, such as funeral costs and bills. 5. Prepare for end-of-life costs I was surprised by how expensive it is to bury someone. We were quoted up to $25,000 for burial plots in California. Even cremation, which we chose, came to around $23,000 after including the niche (a final resting spot to house cremated remains) and the funeral. Prepaying or researching in advance can prevent financial issues. 6. Prepare for the difficulties of caretaking I spent many nights in the hospital with my mom. Her condition changed from day to day; it was an emotional roller coaster. Balancing work, caregiving, and my own emotional health was difficult. I'm married, and my kids were 5 and 7 years old. I wasn't seeing them regularly during the two months she was sick. Luckily, TIAA offered eight weeks of caregiver leave. Many caregivers only have access to unpaid leave through the Family Medical Leave Act (FMLA), so it's important to plan for potential income loss. If you can take paid leave, do it, because it's tough to balance the emotional toll it takes. 7. Wills aren't everything Wills are essential for securing guardianship and expressing personal wishes, but they don't guarantee that all your assets will be transferred correctly. Retirement accounts, such as IRAs or 403(b)s, are typically passed by beneficiary designations, rather than through wills or trusts. Many other assets are passed via trusts. You should work with both a financial advisor and an estate attorney to discuss your needs. I did the best I could, but if I could do things differently, I would've taken an official leave from work to focus solely on caring for my mother.
Yahoo
18-06-2025
- Business
- Yahoo
The Best $210 To Spend To Maximize Your Investment Returns
The old adage is that you have to spend money to make money. But investors don't actually spend money — they risk losing it in the hopes of compounding it. Learn More: Consider This: But for common retail investors, a relatively modest $210 expenditure might be the only risk-free investment they ever make — and certainly one with the potential to pay the greatest long-term dividends of all. Considering the complexities and volatility of the stock, bond, crypto, housing and other investment markets, ordinary players might not know that they're under-diversified, over-leveraged or facing a tax-related catastrophe until they find out the hard way — by suffering losses that they couldn't afford and might have avoided. Then, there's the easy way: A meeting with a qualified, certified professional advisor who studies the markets, has earned prestigious certifications, participates in ongoing education and serves as a fiduciary with only your best interests in mind. Find Out: According to the Teachers Insurance and Annuity Association of America (TIAA), a Fortune 500 financial services organization, there are five primary signs that it might be time to invest in professional financial guidance: You're worried about paying for college, changing jobs, starting a business, retiring comfortably, being overinsured or underinsured, affording children, caring for an aging parent, or any other nagging financial concern. You're unclear on your financial goals or how to achieve them. Your tax burden is growing or becoming more complex. You're losing money to emotional or impulsive investments. You want to enlist the help of a financial professional, but you think you can't afford it. The red-flag anxieties that call for professional guidance are not unfounded. For example, according to the TIAA: A professional can optimize your asset allocation, which alone can boost after-tax returns by 0.3% annually — that's $1,500 on a $500,000 portfolio. Over two decades of compounding, that seemingly modest sum could pad your nest egg by more than $30,000. You would have missed more than 40% of the S&P 500's gains over the past two decades by missing only the 10 best trading days during that time. A professional advisor can help you remove emotion and bias from your strategy, eliminating panic-selling and attempts to time the market, which contribute to missed opportunities. It's the final anxiety, however, that keeps most people from calling an advisor and scheduling an appointment: Not being able to afford professional guidance, and that's the worst reason of all. According to Harness Wealth, the average financial advisor — there are many specialties and certifications to choose from — charges between $120 and $300 an hour in 2025. The average of that range is $210. While you might not want to part with that sum now, it's a pittance compared to what you stand to gain from enlisting a pro and what you stand to lose by not making what might be the wisest investment of your financial life. More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on The Best $210 To Spend To Maximize Your Investment Returns Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-04-2025
- Business
- Yahoo
Gen Z workers can't cover a month's expenses, but could leverage their big advantage over older counterparts
Gen Z has had a tough go economically. Many graduated college when the U.S. was in the throes of the pandemic and unemployment was sky-high. They struggled to find work. Then Gen Zers were faced with a period of rampant inflation as the economy improved. While inflation has eased, the cost of living is still high. A March 2025 Bank of America report reveals that 52% of Gen Z employees aren't making enough to live the life they want, and that inflation is one of their biggest financial challenges. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? The report found that on average, Gen Z workers spend nearly twice as much as they earn. They don't have enough money saved to cover even one month's expenses. This puts an entire generation at increased risk of debt and vulnerability if they're laid off. The Bank of America report found that Gen Z's per-household spending on both necessary and discretionary items has grown faster than the overall population. For example, in the past year, their spending on entertainment and travel rose 25.5%. Experien reports that the average Gen Zer carries $3,456 in credit-card debt. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP While they're spending a lot on the here and now, they aren't saving long term. Only 20% of Gen Zers are saving for retirement, according to a 2024 Teachers Insurance and Annuity Association of America (TIAA) report. They don't even have much saved in their bank accounts. Federal Reserve data shows that Americans under 35 have less cash in their transaction accounts than older cohorts, with a median balance of $5,400 — compared to $7,500 for 35 to 44-year-olds; $8,700 for 45 to 54-year-olds; and $13,400 for those aged 65 to 74). Gen Zers are clearly trailing. While part of that can be attributed to lower wages, it may also be a byproduct of the way they prioritize discretionary purchases. If you're a Gen Zer without much in the way of savings, take heart. You're young, meaning you have the advantage of time to build wealth and fund a comfortable retirement. You just need to prioritize your finances. Here are some ways to do that. Track spending with budgeting apps. Gen Z is technically savvy, so budgeting apps that integrate your bank and credit card accounts are an easy way to track and categorize your spending. This will help make you more mindful of your spending habits, and help identify discretionary expenses that you can cut back on. Make monthly savings part of your budget. Automate a monthly contribution to your savings account when your paycheck hits. Build up an emergency fund to cover three or more months of expenses. Start investing in your retirement now. Over time, small contributions can go a long way. For example, if you invest $200 a month in an IRA or a 401(k) over 40 years, you're looking at retiring with about $479,000 at a 7% return. That's roughly 2.5 times as much as the typical older American has in their retirement nest egg. Take advantage of employer matching dollars in your 401(k). If you get a raise, apply it to your retirement savings. It won't feel like you're missing the extra money – you just won't get used to seeing it in your paycheck from the start. Boost your income with a side hustle. In late 2024, 66% of Gen Z and millennial workers had started or were planning to start a side hustle, with 65% intending to continue in 2025, according to Intuit. This can help you build an emergency fund and nest egg while freeing up money for more discretionary spending. Invest your earnings. It doesn't have to be complicated; S&P 500 index funds are a good bet, as they allow you to build an instantly diversified portfolio without having to do a ton of research. If you need help, consider talking to a financial planner. Gen Zers have lots of time to get to a more financially secure place. It's just a matter of starting on the right path — right now — to leverage the time that's on their side. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
