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Caring for an Aging Parent: A Guide on How to Prepare for the Future

Admin • January 26, 2024

Caring for an aging parent may feel like life has come full circle: they cared for you throughout your younger years, and you now may be facing a future of caring for them. You won’t find yourself alone with this responsibility: according to AARP , an estimated 38 million people in the U.S., or 11.5% of the population, are taking care of loved ones.

Many who provide care for an aging parent are also in the complicated situation of parenting their children. Close to 4.5 million people in the U.S. are members of this “sandwich generation” – between two generations that require care. Beyond the emotional and physical aspects that come with caring for a parent, the financial challenges can be significant, particularly if you are supporting your own children as well. 

Caring for an aging parent doesn’t have to be financially overwhelming – with strategic foresight and careful planning, you can prepare for this stage in life and treasure the time you have together. This checklist for caring for an aging parent can get you started on the right path to plan for the future.

 

Understand the Financial Impact

An important first step is reviewing your parent’s financial situation so you can understand their income sources and current expenses. Aside from the regular expenses your parent may have, their healthcare costs may become considerable, particularly if they require prolonged medical care. A parent turning age 65 today has close to a 70% chance of needing some type of long-term care support through their remaining years. 

Will you be caring for an aging parent in your home and hire a home aide? Or will you be a caregiver to a parent living in an assisted living facility or nursing home? The costs of caring for your parent can vary greatly depending on their living situation and the care they may need.

Does your parent have long-term care insurance? Long-term care insurance policies offer protection against the financial impact of costly extended care needs, and can help preserve your parent’s savings (and potentially yours as well). Long-term care insurance can also provide in-home care and home health care, which can help relieve some of the stress and burden of physically caring for your aging parent yourself.

Take a look at your parent’s income, including pensions, retirement funds, Social Security benefits, and investment income, to get an idea of how their potential expenses will be met. If you anticipate that you’ll have to help out financially, review your savings and investments as well to see what adjustments you can make so that you can offer that support without compromising your own financial security. 

Have Legal and Estate Plans in Place

As you prepare to become a caregiver for an aging parent, legal and estate planning become the foundation and guide for the care you provide. Talk to your parent to see what legal and estate plans they have in place. These are difficult conversations to have with your parent, but proactive legal and estate planning can help ensure a smooth and well-protected transition from their independent living to being under your care.

A living will outlines the medical treatment preferences of your parent, particularly in situations where they may be physically or mentally unable to communicate their needs. Through a living will, your parent can voice how they would like end-of-life, pain management, and medical intervention decisions to be made on their behalf, easing some of your emotional weight as a caregiver in critical times. 

A financial power of attorney grants you the authority to make crucial financial decisions on behalf of your aging parent. Power of attorney is required for you to access your parent’s funds for their care and enables you to make financial transactions for them, including banking, paying bills, taxes, or managing their Social Security and Medicare benefits.

Having an estate plan in place can further strengthen the financial foundation of caring for your aging parent by ensuring that their legacy continues according to their wishes. Inheritance planning can guide the distribution of assets among their heirs, helping to minimize the tax implications beneficiaries may have. Establishing a trust can offer protection of your parent’s assets and ensure a seamless transition of their wealth while potentially avoiding probate. 

Develop a Resilient Financial Plan

You can help minimize some of the financial challenges of caring for an aging parent through a thoughtful investment strategy designed to help you meet the financial needs of caregiving. A financial advisor can help you develop a comprehensive financial and investment plan that’s focused on your current and future objectives, so that you can be better prepared for the uncertainties of being a caregiver without impacting your own long-term goals.

It’s essential to balance your short-term needs and your long-term objectives in your financial planning as a caregiver. You may need immediate money to pay for expenses related to your parent’s healthcare, living arrangements, or other unexpected costs. At the same time, you need to maintain a continued focus on your own retirement planning and wealth preservation beyond your caregiving years. 

Your role as a caregiver has no set time length or path, and you may find yourself having to adapt to changing needs and unforeseen circumstances. Make sure to adjust your investment strategy as your and your parent’s financial needs evolve to safeguard your own retirement and help ensure a more financially secure future.

Remember to Practice Self-Care

Being a caregiver to an aging parent is not just a financially demanding responsibility, but an emotionally and mentally challenging one as well. It can be difficult to witness the toll that age takes on your parent, and the pressure of caregiving can be extremely stressful. 

Make sure you take the time to practice self-care so that the stress, worry, and anxiety don’t cause you to become overwhelmed. Caregiver burnout is real, so make it a priority to seek out support if you need it, take breaks to recharge, and focus on your own well-being. Taking care of yourself will enable you to take better care of others.

How Five Pine Wealth Management Can Help

Caring for an aging parent is not an easy task, but it can go more smoothly with strategic, careful planning. The financial impact of caregiving can be significant, but having a well-constructed financial plan can help ensure that providing care for your parent does not risk your own financial security.

At Five Pine Wealth Management , we can help you develop a financial plan based on your unique circumstances and objectives. As fiduciary financial advisors , we are committed to offering guidance and advice that’s in your best interest to help you reach your financial goals. To find out how we can help you plan and prepare for every stage of life, email us or call us at: 877.333.1015.

 

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.

From Full House to Financial Freedom: Smart Money Moves for Empty Nesters

May 23, 2025
The day your last child leaves home hits differently. It’s not just about the quiet hallways or fewer groceries in the cart. It’s the moment you realize that the life you’ve known for 20+ years is evolving into something new. For many, that change is deeply emotional. But it’s also a golden opportunity. At Five Pine Wealth Management, we work with parents who are entering this new season of life. Maybe you’re celebrating. Perhaps you’re feeling uncertain. Likely, you’re feeling a mix of both. This new chapter comes with financial freedom and decisions to match wherever you land. Let’s explore the smart financial moves you can make as empty nesters. Empty Nesters: A New Financial Season Meet Rob and Dana. After 25 years of raising three kids, their youngest finally left for college last fall. Their house, once bustling with backpacks, soccer cleats, and half-eaten cereal bowls, suddenly felt oversized and eerily quiet. They weren’t used to grocery bills being cut in half or weekends without games and activities. But what really surprised them? Just how much less money was going out each month. They came to us with a familiar feeling: a mix of excitement and uncertainty. "We think we're in a good place," Dana said. "But are we doing what we should be doing?" This is where a financial check-in becomes vital. With fewer day-to-day expenses and more flexibility, this is a time to refocus your finances. Here’s where to focus: Revisit your monthly budget. Your spending needs have probably changed. Without dependents at home, you may find new flexibility. Redirect those dollars toward long-term goals. Refresh your financial goals. That dream trip to Italy or the kitchen renovation you’ve put off? Let’s pencil it in, but also ensure your retirement accounts are getting the love they need. Update your estate plan. Now that the kids are young adults, your wills, healthcare directives, and beneficiaries may need adjusting. Freedom looks different for everyone, but for many, it starts with clarity. Pre-Retirement Planning: Your Next Big Financial Milestone For most empty nesters, retirement is no longer a distant concept—it’s getting real. Pre-retirement planning becomes a critical focus, especially in your late 40s to mid-60s. This is often the highest-earning period of your life and the sweet spot for pre-retirement planning. Here’s what we help our clients prioritize: Maximizing retirement contributions : As an empty nester, your cash flow could increase by 12% or more . Now’s the time to supercharge your 401(k), IRA, or other investment accounts with that extra cash. If you’re 50 or older, take advantage of catch-up contributions. Evaluating your risk exposure : Is your portfolio still aligned with your risk tolerance and timeline? Consider your tax strategy: With fewer deductions (like kids at home) and possibly a high-earning year, you may want to explore Roth conversions, charitable giving, or other tax-aware strategies. Running retirement projections : We help clients answer big-picture questions like: When can I retire? Will I have enough? What lifestyle can I realistically support? These aren’t always easy questions, but they’re essential. Planning for healthcare : Don’t wait until 65 to think about Medicare. Explore long-term care insurance and out-of-pocket expectations now. Rob and Dana sat down with us to run a retirement analysis. With only 8 years until Rob planned to retire, we helped them rebalance their portfolio to reduce risk, evaluate their pension and Social Security options, and make a plan to pay off their mortgage early. The result? They now have a clear retirement date and peace of mind. Should I Downsize My Home? One of the most common questions we get from empty nesters is, “Should I downsize my home?” It’s not just a financial question. It’s an emotional one, too. That house holds birthday parties, graduation photos on the stairs, and a dent in the drywall from a wild game of indoor tag. But it may also hold higher property taxes, more space than you use, and maintenance costs that don’t serve your current lifestyle. When deciding whether to downsize, we walk clients through: Total cost of ownership : What are you paying for the space? Emotional readiness : Are you ready to let go of the home? What would moving free up? : Cash for retirement? A move to your dream location? Family needs : Will your kids (or grandkids) be visiting regularly? Would a smaller home still support that? Downsizing doesn’t always mean moving into a tiny condo. Sometimes it means relocating to a one-level home with less yard or trading square footage for a better lifestyle. For Rob and Dana, downsizing meant moving to a townhome closer to their daughter and walkable to their favorite coffee shop, all while cutting their housing costs by nearly 35%. Give Yourself Permission to Dream Again One of our favorite things about working with empty nesters is helping them rediscover what they want. For years, life revolved around the kids. College tours. Dance recitals. Saturday mornings spent on the soccer sidelines. You were investing in their future. Now, it’s time to invest in yours. That might mean: Launching the business you put on hold Traveling during off-peak seasons (because you can!) Picking up a new hobby or volunteering more Creating a legacy through charitable giving or a family foundation Whatever it is, we want to help you align your money with your vision. Ready to Rethink the Next Chapter? This stage of life is full of opportunities, but it can also raise big questions. The good news is you don’t have to figure it all out on your own. Whether you're considering downsizing, exploring early retirement, or just want to know you’re on the right path, Five Pine Wealth Management is here to help you plan wisely, invest intentionally, and live fully.  Take advantage of this pivotal financial moment. Call (877.333.1015) or email us today to schedule your empty nester strategy session. The empty nest doesn't have to feel empty. It can be the launch pad for your next chapter of financial success.