In today’s rapidly evolving business environment, standing still is not an option. The companies that thrive are those that innovate, adapting to change and embracing new technologies.

Innovation is more than just a buzzword – it’s a vital strategy for future-proofing your business. Here’s how small businesses can leverage innovation and benefit from a range of financial credits and incentives.

Research Credit: A Catalyst for Technological Advancement

The Research Credit, also known as the Research & Experimentation Tax Credit, offers a dollar-for-dollar reduction in federal income taxes. It aims to encourage businesses to invest in research and development, stimulating technological progress.

Whether you’re developing new products, refining existing processes, or exploring uncharted territories in your industry, this credit makes innovation more financially viable for businesses of all sizes.

Commercial Clean Vehicle Credit:      

Driving Eco-Friendly Solutions

Environmental sustainability is no longer just a trend – it’s a responsibility. The Commercial Clean Vehicle Credit, available under Internal Revenue Code (IRC) 45W, assists businesses that purchase qualified commercial clean vehicles.

This incentive not only reduces your company’s carbon footprint but also positions your brand as an industry leader in eco-friendly practices. It’s a win-win for both your bottom line and the planet.

Alternative Fuel Vehicle Refueling Property Credit: Energizing Green Transportation

As the world moves towards cleaner energy, businesses can capitalize on the Alternative Fuel Vehicle Refueling Property Credit. This initiative supports companies transitioning to alternative fuels or those providing cleaner fueling options to the public.

If your business operates a fleet of vehicles or is in the fuel supply chain, this credit can facilitate your shift to greener alternatives, promoting sustainability and energy independence.

Utilizing These Incentives Strategically

Utilizing these incentives requires a careful understanding of the eligibility criteria and application process. Collaborating with tax professionals or specialized agencies can help you navigate these complexities.

The Bigger Picture:

Cultivating a Culture of Innovation

Beyond these specific credits and incentives, adopting a culture of innovation can lead to organic growth and competitiveness.

Encourage creativity, foster collaboration, invest in continuous learning, and be open to failure as a pathway to success.

The Future is Bright

Innovation and “looking forward” incentives are more than just opportunities to save on taxes – they are investments in the future of your business.

By leveraging these credits, small businesses can pave the way for growth, sustainability, and success in an ever-changing landscape.

Don’t let your business be left behind. Embrace innovation, take advantage of these incentives, and lead your business confidently into the future.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

This article was prepared by FMeX.

LPL Tracking #1-05377832

The post Fueling Growth For Your Small Businesses appeared first on Tribox Private Wealth.

Now, let’s flip the script for a moment and talk about something just as important, if not more so – your business. How much time do you invest in planning, strategizing, and calculating the moves that will take your small business to the next level?

Velocity of Money in Fantasy Football

In economics, the concept of the “velocity of money” refers to how fast money changes hands in an economy, stimulating growth and prosperity. The quicker money circulates, the better it is for the economy. Similarly, in fantasy football, the more quickly you adapt and change your roster according to the situation, the more points you generate.

Velocity of Money in Business

Now let’s apply that concept to your business. The time you spend planning and strategizing for your business increases the “velocity” of growth. This means, the quicker you act on opportunities, make changes, or even pivot if something isn’t working, the more your business benefits. And just like in fantasy football, you have to be agile, alert, and responsive to the changing market conditions.

Time Investment Multiplier

Consider this: what if the 4 hours a week you spend analyzing player stats, trade possibilities, and match-ups in fantasy football were directed towards enhancing your business strategy? That’s about 208 hours a year! Imagine the projects you could launch, the marketing strategies you could develop, or even the additional clients you could reach.

Time is the one resource that, once spent, you can’t get back. The question then becomes: How are you dividing your time to generate the best returns? You don’t necessarily have to give up on your passion for fantasy football, but a little balance could tip the scales in favor of your business success.

This fantasy football season, let’s also kick start a season of planning, growth, and success for our businesses.

Important Disclosures:

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advisory services offered through NewEdge Advisors, LLC, a registered investment adviser. NewEdge Advisors, LLC and Tribox Private Wealth are separate entities from LPL Financial.

LPL Tracking #478364

The post Fantasy Football vs Business Planning: The Velocity of Time & Money appeared first on Tribox Private Wealth.

According to a 2022 study by the Global Entrepreneurship Monitor, there are 31 million entrepreneurs in the U.S., which is about 16 percent of the adult workforce. Of that workforce, 35 percent of entrepreneurs and small business owners are between 50-59 years of age. [i]

Anybody can become an entrepreneur if they have an idea and are willing to do the work required to get their product or service out to the public. However, becoming an entrepreneur is extremely challenging, and most small business ventures still need to make it to the finish line. That should not deter you, though, from pursuing your dreams. Get a head start on your preparations by consulting with a financial professional to see where you stand.

How do you become an entrepreneur? There are a few steps you can take to get started.

• To be an entrepreneur, it helps to be an expert in your field. Build your knowledge base and skill set – Having a good foundation of knowledge in the field you are starting a business in can allow you to make better decisions, troubleshoot problems, and adapt to an ever-changing market and world.

• Consult a financial professional – Guidance from a financial professional might offer you a supportive perspective to help you avoid unnecessary mistakes and develop a strategy for which steps you should take to get your company off the ground.

• Create a detailed business plan – Ensure you understand the costs and necessary machinery, supplies, production space, and resources required to run a business. What are the potential supply and demand requirements, the essential insurance coverage, licenses needed, etc., to avoid issues down the road that might create a problem for your business? 

• Secure financing if needed – Do you have the money to launch your business? Have you spoken to a bank for a venture capitalist that may be able to help?

• Build your business – Once everything is in order, it is time to build your business. This will require a significant amount of your time and effort. If you follow the steps above, it should make it easier for you to establish and grow your company. 

Find the right business for you. Engage your target audience that will inspire you to do the necessary work to pursue your goals. Learn the value and techniques of selling an idea and marketing your product or service. Why wait? Reach out to a financial professional today!

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by LPL Marketing Solutions

[i] 20 Entrepreneur Statistics You Need To Know (2022) (apollotechnical.com)

LPL Tracking # 1-05351830

The post Being Your Own Boss – A Different Kind of Freedom appeared first on Tribox Private Wealth.

The survey of 514 CEOs, senior IT executives, and other C-level executives from global enterprises was conducted in March 2016. The aim of the survey was to investigate the link between digital technologies and business success. Specifically, respondents were asked about their views on the strategic benefits and operational value of IT, and about their company’s current and planned investments in IT.

Researchers identified as “digital leaders” the 8% of respondents who reported that their company is entirely digital across major functions. Compared to the other executives surveyed, these digital leaders were far more likely to report that their company views IT as crucial to meeting strategic goals, is globally integrated, and is effective at information-sharing across functions and regions. Digital leaders were also more likely than the other respondents to indicate that their company is prioritizing investments in the public cloud, collaboration software, and cloud-based applications services. Most strikingly, 37% of these digital leaders, but only 11% of the other respondents, said that their company’s financial performance was much better than that of their competitors in the past fiscal year.

In the survey, 63% of the digital leaders, but only 52% of the other respondents, said that their company
plans to increase overall IT spending somewhat or significantly in the next three years. Moreover, 44% of the digital leaders reported that the CEO is the primary driver of IT strategy at their organization; a result that researchers cited as an indication that an organization places added emphasis on the importance of technology in achieving business goals.

Researchers observed that even though most of the executives surveyed reported that their company will increase its investments in IT over the next three years, most organizations have yet to take full advantage of newer digital technologies. While 57% of the digital leaders surveyed reported that IT is seen as a crucial partner in meeting their company’s strategic goals, 27% of all respondents acknowledged that their company regards IT as operationally helpful, but not as crucial to strategy. Thus, not surprisingly, the survey found that 85% of the digital leaders, but just 63% of all respondents, reported that the central IT function at their company controls at least some of the IT budget.

Among all of the executives surveyed, 54% indicated that their company is becoming more digital to raise efficiencies, while 35% admitted that cost-cutting is the primary goal. Slightly more than one-quarter of respondents said they view digital technology as a way to keep up with new, fully digital companies;
while just 10% said they view technology as a way to surpass competitors. Noting only around one-third of all respondents said they plan to start using cybersecurity tools in the near future, researchers warned that spending on cybersecurity is lagging far behind spending on other tools, and that this is potentially concerning given the risks involved.

Important Disclosures

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by Liberty Publishing, Inc.

LPL Tracking #1-05168011

The post Digital Technologies Linked ToBetter Company Performance appeared first on Tribox Private Wealth.

Before you make the commitment to starting your own business, here are a few important factors to consider.

Personal investment

Why do you want to start a business? For the most part, you should believe you have a great idea that you are passionate about. Giving your business a chance to be successful will require a personal commitment and probably some sacrifices. Are you prepared to invest the time, money, and personal resources to get your business started?

As you might imagine, there’s a lot that goes into starting a business. You’ll have to do some market research to determine the potential size of your market, identify the competition, and set the price of the goods or services you’ll offer. You should develop a written business plan, research the best legal entity to use for your business, and understand what licenses and/or permits you’ll need. You’ll have to figure out how much capital you’ll need to start your business, and where that capital will come from.

Type of business

What kind of business do you want? Do you have a unique idea, or do you want to get involved in a type of business that already exists, like a franchise? What products or services will your business provide? Have you identified your target market? Who is your competition, and what will separate your business from your competition? Depending on the type of business, how long will it take before your products or services are available to your target market? How big and how quickly do you want your business to grow?

The type of business you choose should not only match your talents, abilities, and interests, but it also should have a viable place in the market, based on your competition and the potential demand for the products or services your business will offer. Getting this information will take some time and effort, but many businesses fail simply because they’re in the wrong market or the competition is too strong.

The business plan

It’s one thing to have a great idea for a business, but it becomes much more real when you put it down on paper. A business plan is essentially the story of your business: the name of your business, what your business does, how you came up with the idea for your business, what markets you serve, what differentiates your business from the competition, where your business is now, and where you see it in the future. Not only should your business plan serve as a road map to a successful business venture, but if you’re going to seek financing for your business, you’ll almost certainly be asked for a business plan. There’s generally no set form for use in developing a business plan, but most plans cover these essential elements:

• An executive summary, which briefly describes your business as a whole and touches on your business’s profile and goals
• An in-depth explanation of the history and development of your business
• A summary of your products and/or services
• A customer description, market analysis, and competitor analysis
• A description of your business’s legal entity (e.g., corporation, partnership, sole proprietorship) and management organization
• An explanation of your marketing plan and sales strategy
• A capitalization plan including projected revenues, cash flow projections, pro forma financials, and an explanation of how you’ll use funds

Selecting a business entity

One of the first decisions you’ll need to make is what form of legal entity your business will take. If you’re starting a business from scratch (as opposed to buying an established business), your options are many. The type of entity you select is important because it can determine the types of permits you’ll need, where and how your business should be registered, the extent of protection from personal liability you’ll receive, and the amount and form of taxes that may have to be paid. While it’s a good idea to consult a financial or legal professional before selecting the type of entity for your business, here’s a brief description of the more common forms of business structures.

Sole proprietorship: A sole proprietorship is the most straightforward way to structure your business entity. As a sole proprietor, your business is simply an extension of you. Sole proprietors are liable for all business debts and other obligations the business might incur. This means your personal assets can be subject to the claims of your business’s creditors.

Partnership: A partnership is a business entity where two or more people enter into a business relationship for mutual profit. Partnerships are organized in accordance with state law. In a general partnership, all partners can act on behalf of one another in furtherance of partnership business, which means each partner is personally liable for the acts of the other partners, and all partners are personally liable for the debts and liabilities of the partnership. Limited partnerships and limited liability partnerships may provide some liability protection for partners according to the state law where the partnership is formed.

Corporations: There are several different types of corporations. Generally, two advantages of corporations are that they provide a shield from individual liability and are the easiest type of entity to use to raise capital. Some common types of corporations are S corporations and limited liability corporations or companies. S corporations and most limited liability corporations pass income, gains, deductions, and losses of the business through to the shareholders. By comparison, a C corporation is taxed as a separate entity.

Financing your business

Your business plan is in place. Now you have to figure out where you’ll get the funds to set your dream in motion–and sustain it. The first step in determining your financing needs is to develop a line-item budget, projected over a period of months and/or years.

Next, you’ll need to figure out how to finance your business. The two general categories of financing available for businesses are debt and equity. Debt requires repayment of a loan. Equity involves raising capital by selling parts of the business to investors.

One place to look for capital might be your own assets. You may be able to raise money for the business from your savings or borrow against a retirement plan, life insurance policy, credit card, or the equity in your home.

Another common source of funds for new businesses is what’s called “friends and family.” However, such funding is most likely to be successful if it’s structured in a businesslike way, with clear terms of repayment or ownership participation.

You can apply to banks or credit unions for loans. The Small Business Administration has a website devoted to women-owned businesses at www.sba.gov/content/women-owned-businesses.

There you can find resources to help you start and finance your business. Also, your local chamber of commerce may be able to refer you to state and local agencies that provide financial assistance to new businesses located within your geographic area.

Anything else?

There are plenty of other things to consider, such as taxes, licenses, fees, and permits. You’ll need to think about where to locate your business and how you’ll market it. Will you have employees? Will you add a retirement plan? If so, you’ll have regulatory requirements and tax responsibilities, as well as possible workers’ compensation to consider. But you don’t have to go it alone. There are experts available to serve as mentors or counselors. Check the Women’s Business Resources section of the Small Business Administration website at www.sba.gov for information on locating a mentor.

Additional questions to consider

• How will you manage your business?
• How many employees will you need to start up?
• What types of suppliers will you need to contact?
• How will you price your product or services relative to your competitors?
• What kind of insurance do you need?

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This article was prepared by Broadridge.

LPL Tracking #1-05114005

The post Women – What You Should Know When Starting a Business appeared first on Tribox Private Wealth.

As a business owner, putting all your profits back into the business may be tempting, especially during the lean years. However, when it comes to saving and investing as a business owner, there are other paths you could consider for the long run without so much emphasis on the short term.

Maintain Liquid Assets

Everyone needs to have savings. For small business owners, savings are critical. Liquid assets may help you weather challenging times and make you a more attractive candidate for a loan. When times are tough, cash may help carry you through.

Engage a Financial Professional

You may assume you do not have enough money to make paying a financial professional a worthwhile investment. You may believe you cannot afford one. However, as a small business owner, you may benefit from getting help from a financial professional. A financial professional may help manage your tax burden and your operating expenses, with a focus on cash flow.

Do Not Overinvest in Physical Space and Equipment

It may be tempting to purchase or rent a storefront for your new business. However, it may help to avoid falling into the trap that hurts many business owners—the urge to quickly invest in a brand-new office, buy a company car, or otherwise overcommit to physical overhead as soon as the money starts coming in. By expanding at a more reasonable pace as your business growth demands, you may be able to maintain a more sustainable level of growth.

Avoid Ultra-Risky Stocks

Running a business is a gamble in and of itself, so adding a risky stock portfolio on top of this may expose you to extraordinary risk. Investing in individual stocks may be too risky. Instead, consider index funds that track one of the major market indices that might be less risky. However, be aware that no investment is risk-free.

Plan Your Succession

One frequently overlooked part of a successful small business strategy is having a contingency plan for transferring ownership at the time of your retirement or demise. As a business owner, you should have, at minimum, a last will and testament and life insurance in place.

Your will might include instructions to keep things running in your absence (like managing payroll), while life insurance may provide funds for the loved ones you leave behind. A succession plan is a strategy worth pursuing rather than leaving this issue unmanaged.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or insurance product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All indexes are unmanaged and cannot be invested into directly.

Although index funds are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes, the trusts may not be able to exactly replicate the performance of the indexes because of trust expenses and other factors.

Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices.

This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.

This article was prepared by WriterAccess.

LPL Tracking #1-05372579

The post 5 Tips for Saving and Investing as a Small-Business Owner appeared first on Tribox Private Wealth.

Loneliness May Affect Your Financial Health Along With Your Physical Health

The American Psychological Association has made correlations between loneliness and increased levels of inflammation in the body and stress hormones. This may lead to adverse effects, such as an increased risk of cardiac disease and arthritis. Poor health may lead to more costly medical expenses and more time off of work. This expense increase and a loss of work time may eventually lead to problems with your finances.¹

Your Social Circle May Lead to Increased Spending

Sometimes an active social life may lead to increased spending, sometimes even more than you can comfortably afford. If your social circle is comprised of friends that constantly spend outside of their means, you may find yourself mimicking their behavior. This may include making large purchases on impulse that may affect your future financial goals.²

Social Pressure May Lead to Poor Financial Decisions

No matter your social circle, fitting in may seem like the most important thing. Unfortunately, trying to impress friends by spending more than you have or making an investment you know may not be ideal may lead to poor financial choices and consequences. Instead of putting yourself under financial strain to fit in with a specific group, it may be better to reevaluate the relationship.¹

Having a Strong, Supportive, Social Circle May Help Improve Your Finances

While some aspects of your social life may lead to possible negative consequences, there are some instances where your social life may improve your financial outlook. Being part of a supportive social circle and having friends that you depend on will improve your quality of life and may also improve your financial health. Supportive friends will likely provide you with time and other resources that may help you spend less. This could include lending you money at a lower interest rate or letting you borrow tools, or helping you complete a project instead of paying to have it done.¹

Your social life may affect your financial goals in a way that you may not have considered. Take a good look at your social circle and lifestyle to see if it benefits your financial future or if maybe now is a good time to make some changes to prevent it from negatively affecting your financial goals.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05370165

Footnotes:

¹ Financial Well-Being and Social Relationships Closely Linked, Gallup, https://news.gallup.com/poll/187616/financial-social-relationships-closely-linked.aspx

² Americans unhappy with family, social or financial life are more likely to say they feel lonely, Pew Research Center, https://www.pewresearch.org/fact-tank/2018/12/03/americans-unhappy-with-family-social-or-financial-life-are-more-likely-to-say-they-feel-lonely/

The post Get to Know the Rich Relationship Between Your Financial and Social Life  appeared first on Tribox Private Wealth.

Fortunately, there are steps you may take to mitigate these stresses and develop a strong action plan. Here are four tips to help sandwich generation members survive and thrive during this season of life.

Prioritize

No one handles it all alone. One way to manage stress involves focusing on the most important tasks and letting others slide. For example, if you are deciding whether to spend the next two hours mopping your kitchen floor or working on a time-sensitive task for your job, the highest priority is likely to be your job.

Other decisions might be more complex. Having a broad idea of what value to place on various categories such as work, marriage, parenting, social obligations, volunteering, and household tasks may help you make prioritized choices.

Delegate and Put Others to Work

As more tasks demand attention, some may need to be dropped, and others delegated. This situation is where prioritization comes in. Being in the sandwich generation means having others—including those you care for—available to help. You may want to delegate certain household chores to your teenagers, ask your spouse to take on responsibilities you have previously handled, or lean on siblings to help with your parents.

Consider an In-Law Suite

Not every adult child wants to share a home with their parents, even in a healthy relationship. However, an in-law suite may be worth considering for many families when minor children and aging parents require care and oversight. With this strategy, you have your entire family under one roof instead of being spread too thin.

Having an in-law suite as a separate living space for your parents might lower friction. They may provide extra help when needed—supervising homework, shuttling teens to practice, helping with meals, and taking on other household tasks. You are also close enough to assist your parents when they need help and have the opportunity to be the first to notice when they begin to need a higher level of care.

Hire Help When Necessary

If you struggle to finish your to-do list each day, evaluate what tasks are good for hired help to perform. You may benefit from dog walkers, lawn care workers, and house cleaners. There are meal preparation services, nannies, and drivers. A wide range of workers may take on duties that would otherwise fall to you.

The expansion of the app-based gig economy has made it even easier to find reliable workers. Perhaps you want a seasonal deep-cleaning of your home or are looking for a long-term childcare, pickup arrangement. If the budget allows, you might be able to find the help you need.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This article was prepared by WriterAccess.

LPL Tracking #1-05370157

The post 4 Sandwich Generation Survival Tips  appeared first on Tribox Private Wealth.

Optimize Your Current Assets

One of the first steps toward financial independence is optimizing your current assets. This could take the form of increasing the profitability of your business by increasing your marketing, reducing your current costs and expenses, finding ways to reduce your tax burden, or continuing your education. You will need to take an inventory of your current assets and expenses and develop a strategic plan to optimize these factors and help your company reach its potential.¹

Pay Down Debt

There are two primary types of debt: productive and reductive. Productive debt is debt that helps nurture your financial growth and puts you on the path toward financial freedom. Reductive debt, on the other hand, is debt spent on items that will depreciate in value and not provide boosts to revenue or income. It is similar to credit card debt, and eliminating or at least reducing it can put you and your business on a path toward overall independence. Assess all of your debt and develop a plan to pay it down aggressively until it is eliminated.¹

Beef Up Your Savings

Savings are vital for yourself and your business since they will help you build wealth and financially prepare you for unexpected expenses. One way to increase savings as a business owner is to take advantage of your company’s savings plans. This can include IRAs, 401ks, and health savings accounts. You may also want to look at the various investment options for your personal and company funds that can create long-term returns.²

Give Your Insurance the Once Over

While growing company assets is crucial to achieving solid financing, so is insuring them. Without proper insurance, you risk losing what you’ve gained through your hard work. Review your insurance policies to make sure that you not only have all of your assets covered but that you have proper coverage limits. Policies you should consider reviewing include life insurance, disability, business, long-term care, health, and property and liability coverage.²

Follow the above tips to put yourself on the path to financial independence. Assistance from a financial professional can assist you in your wealth management efforts and overall financial goals.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or insurance product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing.

Investing involves risks including possible loss of principal.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05370165

Footnotes

¹ “The 4 x 4 Financial Independence Plan for Entrepreneurs,” Entrepreneur.com, https://www.entrepreneur.com/leadership/the-4-x-4-financial-independence-plan-for-entrepreneurs/306064

² “How Entrepreneurs Can Safeguard Their Financial Futures—And Work Toward Financial Freedom,” Forbes, https://www.forbes.com/sites/forbesbusinesscouncil/2023/02/14/how-entrepreneurs-can-safeguard-their-financial-futures-and-work-toward-financial-freedom/?sh=123c28f17a65

The post Small Business Owners: Life, Liberty, and the Pursuit of Financial Independence  appeared first on Tribox Private Wealth.

What is it?

Caring for your aging parents is something you hope you can handle when the time comes, but something you probably hope you never have to do. Caring for your aging parents means helping them plan for the future, and this can be overwhelming, both physically and emotionally. When the time comes for you to take care of your parents, you may be certain of only two things: Your parents need you, and you need help.

Start planning

Talk to your parents about the future

Start caring for your aging parents by talking with them about their needs and wishes if they are able. In some cases, however, they may not be willing to talk to you about their future, either because they are afraid to face it or because they resent your interference. If this is the case, you may need to do as much planning as you can without them, or, if their safety or health is in danger, step in as caregiver anyway.

Prepare a personal data record

The first step you should take is to ask your parents to help you prepare a personal data record (if they are unable to help you, you’ll have to search for the information yourself). A personal data record is a document that lists information that you might need in case your parents become incapacitated or die. Information that should be included is financial information, legal information, medical information, insurance information, and information regarding professional advisors and the location of important records.

Example(s): When Marcia and her mother prepared a personal data record, Marcia realized that her mother did not have a durable power of attorney or health care proxy in case she became incapacitated and could not make decisions about her medical care. The next day, Marcia made an appointment with her mother’s lawyer to discuss this issue.

Get advice

You can’t know everything, and you probably don’t have enough time to learn everything you need to know to care for your parents. That’s why you should seek advice from professionals. Some advice will be free, and some you will have to pay for. If you live far from your parents or are too overwhelmed to handle all your parents’ affairs, you can hire a geriatric care manager who will evaluate your parents’ situation, suggest options, and coordinate professionals who can help. In addition, talk to your employer. Some employers have set up employee assistance programs that offer advice and assistance to people who are dealing with personal challenges, including caring for aging parents.

Get support

Don’t try to care for your parents alone. Many local and national caregiver support groups and community services are available to help you cope with caring for your aging parents. If you don’t know where to start finding help, call the Eldercare Locator, an information and referral service sponsored by the federal government that can direct you to resources available nationally or in your area. Call the Eldercare Locator at (800) 677-1116.

What kind of advice will you need?

Housing and health care advice

If your parents are like many older individuals, where they live will depend upon how healthy they are. As your parents grow older, their health may deteriorate so much that they can no longer live on their own. At this point, you may need to find them in-home health care or health care within a retirement community or nursing home. On the other hand, you may want them to move in with you. In addition, you will need information on managing the cost of health care, long-term care insurance, major medical insurance, Medicare, and Medicaid.

Contact:

• National Association for Home Care
• Visiting Nurse Associations of America
• Centers for Medicare & Medicaid Services (formerly known as the Health Care Financing Administration)
• American Association of Homes and Services for the Aging
• American Association of Retired Persons (AARP)
• Health Insurance Association of America

Financial advice

If your parents need help managing their finances, you may need to contact professionals whose advice both you and your parents can trust, including one or more of the following individuals or organizations.

Contact:

• Your financial planner
• Your banker
• Your investment counselor
• Your tax attorney
• The Social Security Administration

Legal advice

Legal advisors can help you plan for your parents’ incapacity (including preparing documents such as power of attorneys, medical directives, and living wills), contact nursing home ombudsmen, set up and monitor guardianship, prepare wills, give tax advice, and provide bill payment and representative payee assistance. Many states provide funds for the delivery of free legal services to the elderly and many attorneys specialize in elder law, so finding legal advice shouldn’t be difficult.

Contact:

• Your attorney
• National Association of State Units on Aging
• American Bar Commission on the Legal Problems of the Elderly
• Legal Counsel for the Elderly

What kinds of support and community services will you need?

Caring for your aging parents will be easier if you know what kinds of support and community services are available and where to locate them. The following is a list of the kinds of support and community services you can find locally and nationally, along with specific suggestions of who to contact for information.

Adult day care

If you need to work or run errands and you can’t leave your parents alone, consider using adult day care. These programs are located in hospitals, churches, temples, nursing homes, or community centers. Many are private nonprofit organizations. Adult day care can be expensive but is sometimes subsidized by the government, and fees may be based on a sliding scale. In addition, Medicare, Medicaid, long-term care insurance, or your health insurance may pay part of the cost.

Contact:

• Your local senior center or community center
• National Institute on Adult Day Care
• The Alzheimer’s Association

Caregiver support groups (self-help)

Many self-help groups are available to provide information and emotional support on broad topics (such as aging) or specific topics (such as heart disease). You may find these support groups helpful if you know little about caring for your aging parents. Such groups might also provide an opportunity to help others by sharing your experiences.

Contact:

• The Alzheimer’s Association
• Children of Aging Parents
• National Self-Help Clearinghouse

Caregiver training/health education

You may feel better about taking care of your parents if you are armed with knowledge. You may want to complete first-aid courses or take classes in gerontology.

Contact:

• Your local college or university
• Your local hospital
• The American Red Cross

Geriatric assessment

If you are uncertain of your parent’s mental or physical capabilities, ask his or her doctor to recommend somewhere you can take your parent to undergo an assessment. These assessments can be done at hospitals or clinics. Your parent will be evaluated to determine his or her capabilities. The evaluation determines whether the individual can take care of himself or herself on a day-to-day basis, including such things as bathing, dressing, eating, using the telephone, doing housework, and managing money. Based on this evaluation, you and your parent will receive advice regarding care options.

Contact:

• Your doctor
• Your lawyer
• The National Association of Professional Geriatric Care Managers
• Aging Network Services

Respite care

When you are caring for your aging parents, you may feel guilty or even resentful because you don’t have limitless energy. Taking care of your parents is hard work, however, and everyone needs a break once in a while. If you are caring for your aging parents, look into respite care. Medicaid may pay for some respite-care services.

Contact:

• Your doctor
• Your local hospital
• The Alzheimer’s Association
• National Association for Home Care

Financial and tax considerations for you

Caring for your aging parents is not only an emotional burden for you but may be a financial one as well, depending upon how well off your parents are and how much caring for them costs. Because many adults today are becoming first-time parents in their thirties, and others are remarrying and rearing second families, increasing numbers of adults are finding themselves in the “sandwich generation.” They face having to pay expenses of growing children (including college expenses), plan for their own retirement, and support their aging parents financially. Thus, it’s important to plan not only your parents finances, but your own as well.

Financial planning for your parents

Making sure that your parents won’t outlive their money is a critical step in ensuring that your own finances will remain sound. In particular, you’ll need to make sure that your parent is receiving all the benefits to which he or she is entitled and that his or her money is invested wisely. You’ll also need to create a financial profile for your parents, a statement that includes income, expenses, and net worth. If, after considering your parent’s financial condition, it’s clear that they won’t have enough resources to pay for their own care, you’ll need to find ways to supplement their income. You may need to look at Supplemental Security Income (SSI), for instance, or ask other relatives for help. You’ll also have to determine how much financial support you can give your parents (see below).

Financial planning for you

Besides caring for your parents, you have a lot of other financial obligations. Before you can determine the best way to help your parents financially, you’ll have to look at your own financial picture. Not only will you need to consider your current expenses, but you’ll have to look down the road a few years, considering how much you’ll need to save for your own retirement and, perhaps, for your child’s education.

Tip: Due to the complexities inherent in providing adequately for several generations in the same family, consider seeking the advice of a financial professional.

Tax benefits for children supporting aging parents

Federal income tax law provides several tax benefits to you if you are supporting your parents financially. If you have a dependent care account at work, you can put pretax dollars into the account that you can use to pay for some costs associated with caring for your dependent parents. You may be able to claim an exemption for your parents as dependents, and you may be entitled to claim a dependent care credit. In addition, you may be able to file your taxes as head of household and deduct medical expenses you paid for your parents. For more information consult your tax advisor.

Questions & Answers

If you are financially supporting your parent, is he or she entitled to receive Social Security benefits based on your earnings?

If you are providing at least one-half of your parent’s support at the time of your death, and he or she is age 62 or over and is not entitled to a retirement benefit that is equal to or larger than the amount he or she would receive based on your earnings record, then he or she may be entitled to receive a parent’s Social Security benefit equal to 82.5 percent of your primary insurance amount (PIA).

This article was prepared by Broadridge.

LPL Tracking #1-292959

The post Caring for Your Aging Parents appeared first on Tribox Private Wealth.