When Charles “Doug” MacLean, a financial advisor with Barnum Financial Group in Stamford, Conn., began researching how to plan financially for Alzheimer’s disease in September 2016, he knew little about the cognitive disorder but he had to learn fast. His mother had just been diagnosed with early onset Alzheimer’s at 61.
Not knowing anyone who’d navigated the disease for a loved one made the task especially difficult for MacLean, now 27. As an advisor, he was also frustrated by the lack of relevant cost-related data out there other than generic national averages.
“My dad, brother and I had to hit the ground running, reaching out to different doctors,” he said, “and trying to read as much as we could.”
MacLean compiled resources, crunched numbers and developed financial planning strategies that he’s now also using with several clients facing this challenge. He’s also taking steps to grow his Alzheimer’s practice.
“I want to be a resource so someone doesn’t have to do it all on their own like I did,” said MacLean, who shares his personal story with clients to help them feel more comfortable and to build his credibility. “You’ve got to plan for not only the patient but also the caregiver and the family.”
When Alzheimer’s is diagnosed, patients and their families must immediately evaluate where they are financially and what financial burdens they may face in the years ahead as the disease progresses, said MacLean. It’s imperative to get educated on its stages, he said, and to consider the possibility of having to downsize a home, move the patient into a facility and provide long-term care.
“This could be a 10-, 15- or 20-year relationship you have with Alzheimer’s,” he tells families and advisors, and the longevity and severity of this disease can easily unravel even the most solid retirement planning.
According to the Alzheimer’s Association, every 65 seconds someone in the U.S. develops Alzheimer’s and 5.7 million Americans are currently living with the disease (a figure projected to rise to nearly 14 million by 2050). Long-term care could cost a family $430 a day and 24/7 supervision could top $125,000 annually, said MacLean. (Dementia and memory loss similar to what is experienced with Alzheimer's but caused by other health problems can also result in staggering financial costs for clients and their families.)
MacLean encourages all families (even those not impacted by Alzheimer’s) to organize and review their documents including wills, living wills, powers of attorney, financial statements, ownership of assets and insurance policies. Families should also work on assembling a well-qualified team of investment, tax and legal professionals, he said.
Families need to estimate the possible costs for the entire process of the disease, look at their insurance options, and find out which government programs and income tax breaks they may be eligible for, said MacLean. When Alzheimer’s strikes early, it may make sense for an individual to start collecting Social Security disability and income benefits early and to invest those savings to use for medical expenses down the road, he said.