Alex Szarka's Latest Posts
READ: Caring for Aging Parents
Thanks to healthier lifestyles and advances in modern medicine, the worldwide population over age 65 is growing. In the past decade, the population of Americans aged 65 and older has grown 38% and is expected to reach 82 million in 2050. As our nation ages, many Americans are turning their attention to caring for aging parents.1,2
For many people, one of the most difficult conversations to have involves talking with an aging parent about extended medical care. The shifting of roles can be challenging, and emotions often prevent important information from being exchanged and critical decisions from being made.
When talking to a parent about future care, it’s best to have a strategy for structuring the conversation. Here are some key concepts to consider.
Cover the Basics
Knowing ahead of time what information you need to find out may help keep the conversation on track. Here is a checklist that can be a good starting point:
- Primary physician
- Specialists
- Medications and supplements
- Allergies to medication
It is also important to know the location of medical and estate management paperwork, including:3
- Medicare card
- Insurance information
- Durable power of attorney for healthcare
- Will, living will, trusts, and other documents
Be Thorough
Remember that if you can collect all the critical information, you may be able to save your family time and avoid future emotional discussions. While checklists and scripts may help prepare you, remember that this conversation could signal a major change in your parent’s life. The transition from provider to dependent can be difficult for any parent and has the potential to unearth old issues. Be prepared for emotions and the unexpected. Be kind, but do your best to get all the information you need.
Keep the Lines of Communication Open
This conversation is probably not the only one you will have with your parent about their future healthcare needs. It may be the beginning of an ongoing dialogue. Consider involving other siblings in the discussions. Often one sibling takes a lead role when caring for parents, but all family members should be honest about their feelings, situations, and needs.
Don’t Procrastinate
The earlier you begin to communicate about important issues, the more likely you will be to have all the information you need when a crisis arises. How will you know when a parent needs your help? Look for indicators like fluctuations in weight, failure to take medication, new health concerns, and diminished social interaction. These can all be warning signs that additional care may soon become necessary. Don’t avoid the topic of care just because you are uncomfortable. Chances are that waiting will only make you more so.
Remember, whatever your relationship with your parent has been, this new phase of life will present challenges for both parties. By treating your parent with love and respect—and taking the necessary steps toward open communication—you will be able to provide the help needed during this new phase of life.
1. WashingtonPost.com, February 14, 2023
2. PRB.org, January 9, 2024
3. Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
WATCH: Long term Care Conversation
In this video, Mark delves into the crucial topic of long-term care planning, a subject that often comes up in our office meetings.
Whether you’re approaching retirement or dealing with family responsibilities, understanding how to prepare for long-term care is vital. He discusses the importance of having your legal documents in order, including wills, powers of attorney, and living wills.
Key takeaways from this video:
- Why long-term care planning is essential
- Steps to ensure your legal documents are prepared
- Financial strategies to cover long-term care costs: savings, insurance, and cash flow
- The importance of regular family conversations about care planning
- How to effectively marshal resources for long-term care
Don’t wait until it’s too late—start these important conversations now and make sure your family is prepared.
If you have any questions or need personalized financial advice, don’t hesitate to contact Szarka Financial.
WATCH: Understanding Inflation and Its Impact on Your Financial Future
Inflation affects us all, yet many people find it confusing and overwhelming. In our latest video, Les and Alex Szarka provide expert insights into how inflation works, its causes, and its impact on retirement and investment strategies. Understanding its effects on your financial future is crucial as inflation rises.
What is Inflation?
Inflation is the gradual increase in the prices of goods and services over time. Les Szarka explains that it’s like watching the cost of a refrigerator or a house climb steadily over the years. A small, manageable inflation rate, such as 1-2%, is expected. However, current high inflation rates can be alarming and challenging to manage.
Causes of Inflation
Les breaks down the primary causes of inflation into two main factors: supply and demand and money printing. Supply and demand imbalances, such as those seen during the pandemic, can lead to higher prices when demand exceeds supply. Additionally, printing and injecting money into the economy can cause inflation, as more money is chasing the same amount of goods.
Impact on Retirement and Investments
Inflation can significantly impact your retirement plans and investments. Alex Szarka discusses how inflation influences interest rates and the stock and bond markets. Higher inflation often leads the Federal Reserve to increase interest rates to control rising prices. This can negatively affect both stocks and bonds, making it crucial to have a diversified investment portfolio.
The Importance of Diversification
Diversification is vital to protecting your investments against inflation. You can mitigate risks and potentially enhance returns by spreading your investments across various asset classes. Alex highlights the benefits of higher interest rates on treasury bonds and CDs, which offer attractive yields.
Planning for Retirement in an Inflationary Environment
Planning is critical when preparing for retirement during times of high inflation. Les emphasizes that it’s essential to account for the rising costs of living while planning your retirement. For example, if you need $75,000 annually today, you may need significantly more in 25 years due to inflation. Strategic planning can help ensure you have enough to maintain your lifestyle in retirement.
Conclusion
Inflation is a complex issue with far-reaching effects on our finances. Understanding its causes and impacts, you can better prepare for your financial future. Les and Alex Szarka provide valuable insights and strategies to help you navigate these challenging times. For more detailed information, watch our full video above.
If you have any questions or need personalized financial advice, don’t hesitate to contact Szarka Financial.
WATCH: Navigating Inflation, Interest Rates & Stock Trends
Join us for this insightful episode of Money Talks where Les and Alex Szarka delve into the complexities of today’s financial landscape. They discuss the critical economic indicators affecting both investors and the general populace, examining everything from the surge in inflation rates to the unpredictable movements of the stock markets in light of current economic trends. Equip yourself with expert knowledge on how to navigate these changes with strategy and insight.
🔹 Key Topics Covered:
Inflation Insights: Delve into recent inflation trends and what future forecasts might hold.
Interest Rates: Decode the Federal Reserve’s policies and their implications for the economy.
Stock Market Analysis: Unpack the causes of recent market fluctuations and key factors for investors to monitor.
Economic Indicators: Analyze vital statistics like employment figures and consumer sentiment to gauge economic health.
🔹 Why You Can’t Miss This Episode:
Expert Guidance: Benefit from the deep expertise of seasoned financial planners, Les and Alex Szarka.
Practical Tips: Discover how recent economic developments could impact your financial planning and investment decisions.
Market Predictions: Receive informed predictions about potential market movements in the upcoming months.
READ: Roth IRA for Kids
Small business owners may find it challenging to find ways to provide additional benefits to their children who work for the company. One often overlooked choice is including a Roth individual retirement account (IRA) as part of their compensation, a strategy that offers the potential to benefit both the children and the business.
Small businesses play a significant role in labor markets. They employ 61.7 million Americans, 46.4 percent of all private-sector employees. Over the period from 1995 to the present, small businesses have been responsible for generating 17.3 million net new jobs, which accounts for an impressive 62.7 percent of all jobs created since 1995.1
The Basics of a Roth IRA
A Roth IRA is a tax-advantaged investment account that allows individuals to contribute after-tax income. Unlike in traditional IRAs, contributions to a Roth IRA are not tax deductible, as their advantage lies in the tax-free growth potential and tax-free withdrawals in retirement.
Roth IRA contributions are phased out for taxpayers with adjusted gross incomes (AGIs) above a certain amount. To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.
Utilizing a Roth IRA for Compensation
To contribute to a Roth IRA, the working family member must have earned income. This requirement creates a unique opportunity for small business owners to include their children as employees and compensate them accordingly. In this scenario, the fact that the child is likely in a very low tax bracket is an advantage, meaning that a smaller percentage is paid up front.
Building a Foundation for the Future
Not everyone knows that Roth IRA funds can be used for various purposes before the age of 59½, such as purchasing a first home, covering educational expenses, and even paying medical costs. Consistent contributions from a young age can accumulate into a substantial account. Imagine that a child starts working at 8 and continues until 16, and the small business contributes to a Roth IRA. Upon reaching adulthood, the child could have a sizable sum saved for milestones such as purchasing a house or funding a college education.
Seeding Financial Success
Although the initial contributions may seem small, the long-term benefits of including a Roth IRA in a child’s compensation package are significant. It not only establishes a solid financial foundation but also instills valuable lessons about saving, investing, and preparing for the future. By involving a financial professional, parents can ensure that their children receive guidance as they transition into adulthood.
Preparing for the Next Generation
Managing money for the next generation has gained considerable attention in recent years. As businesses and families prepare their financial legacies, strategies such as including a Roth IRA in compensation packages are becoming increasingly popular. By working with a financial professional, families can navigate the complexities of wealth management. If you own a small business, including a Roth IRA in your children’s compensation package could be a game-changer. With the potential for tax-free growth and a range of permitted uses, this strategy can provide numerous benefits and potentially greater financial success.
- Advocacy.sba.gov, March 7, 2023
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.