Caregivers are often so focused on managing their parent’s health and financial needs that they don’t even think about their own future needs. Although your focus is on providing care for your loved one, it’s important to think about and prepare for your own future financial and caregiving needs. If you haven’t done it already, now is the time to start planning for own your retirement.

“It’s hard to find the time, but planning for your financial future is a necessity,” says Erika Mielke, a Wells Fargo Private Bank senior wealth planning strategist. “Thinking about the dollars and cents of your own retirement is the best way to ensure you have the funds you need as you age.”

Mielke suggests these tips to help caregivers plan for their own financial future.

Take full advantage of employer programs

If you or your spouse is employed, make sure you are taking full advantage of the financial programs your employer offers. Some examples:

• 401(k) – The 401(k) is set up by your employer and is designed to help you save (and build) money for retirement. The money you contribute to your 401(k) is pooled and invested in stocks, bonds, mutual funds or other types of investments. You choose the type of investment from your company’s list of options. Usually your contribution is deducted from your paycheck before taxes and goes directly into your 401(k) account.
• Company matched contributions – Many companies will make a matching contribution to your 401(k). Your employer might match 10 percent, or even 100 percent of your contribution to your retirement account. This is like getting a bonus, so it pays to put in as much as you can afford. Understand how your employer is matching contributions. Some will match your contributions with company stock. As a result, a large portion of your investment will be in company stock. “Diversification is important. As a general rule, you don’t want more than 10 percent of your net worth in any one asset,” Mielke says. Check with your HR department on rules and restrictions for re-balancing your funds, which would enable you to sell some company stock and re-invest it.
• Flexible Spending Accounts (FSA) – Depending on the type of health plan you have, you may be eligible for a flexible spending account. An FSA lets you set aside money, and the funds are taken out of your paycheck before taxes. You can use the account throughout the year to get reimbursed for eligible health care and dependent care expenses (including elderly parent care expenses) However, FSAs are set up and owned by the employer, so how much you can contribute is determined by your employer. If you change jobs, you can’t take your FSA with you. Also, you must use all the money in the FSA by year-end, or you lose it.
• Health Spending Accounts (HSA) – If you have a high deductible health plan, you are eligible to create an HSA. An HSA has different rules than an FSA. The maximum a family can contribute annually is capped by the IRS at $6,250. It is a bank account that you own and you can invest it as you choose. You can only access the amount of money that’s in your account. When you start contributing – in January for example – you will have less money than you’ll have later in the year. An HSA is not “use it or lose it” meaning if you don’t spend all the money in the account by year-end, it rolls over to next year, and you can take it with you if you change jobs.

Explore alternatives

The IRS caps the amount you can contribute to your retirement plans at $16,500. That includes 401(k), 403(b), IRAs, etc. Once you have contributed the matching amount to your 401(k) and if you are able to contribute more, then you will want to explore whether to add more to your 401(k) or whether an IRA might be good for you. Depending on your income, a Roth IRA might be a good choice because the money goes in after you’ve paid taxes. The money grows over time, and when you take it out, you don’t pay taxes on it again.

Don’t “set it and forget it”

Whether you have your money in 401(k), IRA, company stock or any other investment option, keep tabs on where your money is being invested. Too many people make a choice when they sign up for the plan, then let it ride, and never make changes to it. “Don’t set it and forget it,” Mielke advices. “Be involved in how your money is allocated. In most cases, as you get closer to retirement, your portfolio should be shifted to include less risk.” She recommends having a conversation with a financial advisor. If your plan is administered by a financial firm, find out if they have advisors you can speak to. If not, hire one yourself. It’s a critical step in financial planning.

Think about long-term care now

“Caregivers are on the front lines of seeing first-hand how much long-term care facilities cost,” Mielke says. However, too many don’t think about their own long-term care needs. Long-term care is an insurance policy that covers costs that arise when a person needs on-going care including home care, hospice care, nursing home care or care in an assisted-living facility.

Mielke says the best time to buy long-term care insurance is usually in your 50s. That’s when the prices are the best, but it can still be affordable after that. Before you buy, know the terms, and fully understand the policy you choose. Some questions to ask about any long-term care policy you are considering: What are the maximum daily benefits? How long will coverage last? Is coverage transferable between spouses? If you don’t use it, does it turn into life insurance? Does the policy take inflation into account?

Insurance

Another aspect of financial planning is insurance. Do you have the right type of life insurance? There are many different options, such term or whole life available, and finding the right type depends on your personal situation.

Property and casualty is another insurance caregivers should consider. If other caregivers are caring for your parent inside the home, how are they insured? What if they are injured? What is the liability to the homeowner? “Getting umbrella coverage with your property and casualty that is equal to your net worth is relatively cheap, and it prevents against your net worth being wiped out due to an accident,” Mielke suggests.

Legal documents: Key to financial planning

In addition to building a solid financial base, caregivers must have legal documents in place, such as financial power of attorney, healthcare power of attorney, and a will. Each document serves a specific purpose. For example, POA indicates what will happen if you are incapacitated and unable to make decisions for yourself while you are alive. A will covers how your estate is handled when you die. The various financial documents work together to ensure your wishes are carried out.

Legal documents coordinate with financials – which is why they are a key part of good financial planning. Make sure you work with an expert to ensure everything is titled appropriately and that the POA, will, and life insurance documents are examined in conjunction with financial planning documentation.

Not all financial planners are created equal

When it comes to financial planning, don’t go it alone. Every state has different rules; IRS regulations are constantly changing; and legalese can make even the savviest consumer’s head spin. It’s best to work with a professional who will take the time to understand your goals and individual situation and advise you accordingly.

However, not all financial planners are created equal. Some financial planners are tied to specific companies, products and services. These organizations tout “free financial planning assistance.” However the financial planner you work with is incented to sell you that company’s products and services. They are being compensated for the products they sell. A better option might be to find an independent financial planner that is not tied to a particular financial firm. They charge a fee for their services, but you will get unbiased advice, and find the right products for your needs.

Article courtesy of AgingCare.com, a leading website that connects people caring for elderly parents to other caregivers, personalized information and local resources. AgingCare.com has become the trusted resource for exchanging ideas, sharing conversations and finding credible information for those seeking elder care solutions.

Tutoring, babysitting, even vacationing—There are more ways to contain the cost of an nyc childhood than one might think

By Hillary Chura 

You don’t need to move to the suburbs to save money. (In fact, that usually doesn’t work, but more on that later.) In my experience, there are ways to reduce the cost of almost any good or service you and your family enjoy as part of living in the city—it just takes a little creativity and moxie. I’ll get you going with some of my favorite money-saving tips for New York families, but once you start noodling it over, about I’m sure you’ll come up with some of your own.

Travel 

New York is the country’s top tourist destination, so the next time you start planning a family trip, consider a home swap. For about $10 a month, websites like HomeExchange and Intervac can connect you with members in places you’d like to visit. You stay in their home (usually complete with washer/dryer, kitchen, lawn and sometimes even a pool and car) while they stay in yours. No additional money changes hands. Tip: some co-ops don’t allow swaps, so be sure to check with your building beforehand.

Neighborhood Goods and Services

The big lesson here is to look farther afield. Take storage, for example. If you live in Manhattan, you’re likely to find it cheaper (and just as safe) to use a reputable storage facility in Queens or the Bronx. The same lesson works for birthday cakes, children’s clothing, car washes, dental work, groceries, manicures, kitchen cabinets and almost anything else you’re looking to save money on. Also, never assume that prices within your neighborhood are uniform. I recently was stunned to discover I could pay $19 for a pound of wild-caught salmon at Fairway, $30 at Agata or $40 at the local fishmonger—all within a mile of one another. And don’t even get me started on price differentials in overnight parking! You never know.

Child Labor

Nowhere is it written that you need a 30-year-old CPR-certified, tax-paying professional for a babysitter. Especially if your children are somewhat self-sufficient, consider asking a responsible and smart younger teenager to watch the kids on date night. They can stick a frozen pizza in the oven, help the kids with their homework and be infinitely more entertaining and energetic than an adult who’s babysitting after a full day in the office. Expect to pay $8 to $10 an hour—did I just hear you gasp?—about half of what high school seniors, college students and professional sitters charge. If you’re queasy about leaving a 15-year-old in charge, remember who watched you on those Love Boat-Fantasy Island Saturday nights when your parents were out!

Teacher Tutors

This is New York, so even academic rock stars will need a private tutor at least once before they go on the grand college tour or start applying for financial aid. If you can’t or don’t want to spend $150 an hour for established tutoring services, try connecting with one of your child’s former teachers (a good one, of course) or ask friends for recommendations. Many full-time instructors are already tutoring on the side, and guess what? They’re usually really good at it—they’re teachers! (Plus, they’re often familiar with the specific tests your child will be taking.) Since you’re enlisting just their expertise with no middleman, expect to pay one-third to one-half of what established tutoring agencies bill.

Camps 

Think outside the tent. Some of the more affordable day camps are sponsored by nonprofits like the Brooklyn Arts Exchange, the Van Cortlandt House Museum, Mount Vernon Hotel Museum & Garden, YMCAs and other local community centers, New York Botanical Garden and Greenwich House. Likewise, many neighborhood churches offer week-long half-day programs where kids do crafts, sing and play outside, with some Old and New Testament stories sprinkled in. A week-long program rarely tops $80 per child, and many churches offer discounts for siblings. Though technically not a nonprofit, the Parks Department itself offers a $500/summer program via a lottery.

Student Practitioners

If you or your child needs a service like a haircut, dental work, ADHD or speech therapy or even a family portrait photography session, make a call to a local professional school. To get the practice they need, student apprentices will knead your muscles, snip your locks, address your lisp or drill your cavities under the watch of a veteran at a cost of next to nothing. You can also call the school’s placement offices and ask about how to hire recent graduates. Believe it or not, I did this to find my most recent (OK, only) home decorator. She was young, but kept me from making some headache-inducing mistakes.

Outsource Parenting

If you can make it happen, ship the kids to the grands in a cheaper ZIP code for a week or two of intergenerational bonding over this summer. Even if you enroll the kids in camp, living expenses go down radically when you’re almost anywhere but here. And if you can’t accompany your kids on the drop-off or pick-up trip, consider the fact that you generally pay only an extra $50 to $100 for an unaccompanied minor (aged 5 to 11) to fly solo on nonstop flights.

Negotiate

New York is full of mom-and-pop businesses, and just about everyone, from dentists to the proprietors of kids’ activity and enrichment centers, may lower their bills if you ask. One friend with three kids tried this for summer camp and was so stunned at the discount offered by the camp that he told the owner he didn’t expect that much of a break. Given the economy, even big businesses like hospitals may offer after-the-fact rebates if you receive a bill that’s higher than you expected.

School Auctions

To raise money, many local schools now feature some of the items from their annual benefit on their websites prior to the actual benefit. These are great ways to find big breaks on local children’s classes and birthday parties, among other things. And you don’t have to buy a ticket, dress up or go somewhere to participate; they just want your money. Also check out biddingforgood.com, an online auction clearinghouse where schools, foundations, religious organizations and other charities across the country auction off summer camps, trips, memberships, jewelry, sports tickets and other donations all year round. This spring, I snagged a local museum membership, baseball class, professional consulting, dolphin watching and chess camp for less than half the price I had paid in the past.

In case you’re pondering a move to the land of lawn care and shopping malls to cut costs, you may want to reassess. Assuming you move close enough to the city to keep your day job, chances are your monthly outlay is likely to remain similar to whatever it was in the city, if not more. Soon enough, you’ll wonder where it all goes at the end of the month (much as you probably do now) thanks to paying for niceties like lawn care, garbage collection, snow removal, commuting, heating and cooling, lighting for an extra 2,000 square feet, a car (or two), insurance and higher real estate taxes. On the positive side, with your extra hour (at least) of commuting each day, you’ll have the plenty of time to figure it out.

Hillary Chura is a freelance writer, longtime business reporter and New York City mom of two. Look for her work on newyorkfamily.com, where she’ll soon be starting a blog about, yes, parenting money savers.