Planning for retirement is an important part of your financial management. Especially when you have to care for a child with special needs, the task becomes much more necessary. The best approach is when you can tend to both these needs all at once.
In fact, for most parents with a particular child, planning for retirement is different from the traditional approach. This requires the parents to take a few extra steps and more planning than other parents. However, with the right tools and guidelines, this complex task can become much easier and more convenient.
As Sam and Debra Nagler say in The New York Times, planning for their retirement was met with multiple challenges. That is, they had to focus on the special needs of their child, Rachel, as well.
To assist parents in planning for their retirement with a special needs child, below are some steps and guidelines for help. This can be useful to provide some necessary insights.
Starting Early: Needless to say, managing finances and preparing for retirement is difficult. But when you are planning for your life after retirement with a special needs child, this task becomes much more challenging.
That is why parents must start planning and saving early. You must start with the proper channels to implement your plan. Start having thorough conversations, even if it feels challenging. Consult with the right experts to have a clear retirement plan. This way, you can plan for your retirement and your child’s special needs all at once.
Money Management: When it comes to planning for your retirement, money management is a key instrument. In addition to attending to your child’s special needs, you will also have to ensure a stable life after retirement.
To make that possible, money management is imperative. You must have a clear understanding of your cash inflows in contrast to their outflows. At the same time, make sure to prioritize the extra care and special needs of your child. Ensure that your life insurance policies and finance are structured in compliance with complex eligibility rules for public health benefits.
Special Needs Trust: One of the best ways to attend to your child’s special needs after retirement is through a special needs trust.
Special needs trusts can be of two types, first-part trusts, and third-party trusts. In the case of a first-party trust, the assets of the individual make up the trust. However, these trusts may have withholding clauses. In the case of third-party trusts, another person (the third party) establishes and funds the special needs trust.
Funding the special needs trust by supplementing with life insurance proceeds of the parents can immensely help the child with special needs. Ultimately, this can be one of the best ways to meet your objectives for life after retirement.
Maintain A Realistic Approach: An important step to consider when you are planning for retirement and caring for your child with special needs is being realistic. This means you will often have to take the difficult road.
By maintaining a realistic approach, you can save for your retirement efficiently. This will allow you to tend to your and your child’s needs in a better way. You must carefully consider all your options before you choose one. If you have any doubts, you must contact a financial expert. Thus, you will be able to make an integrated approach toward your savings.
Lastly, the financial and retirement plans may differ from one home to the next. Your child’s needs may also differ in several ways. So, make sure to consult with the right channels before you start your journey. To share your thoughts on this, make sure to join our forum. Register now to become a member and join the movement.