Age in place, exactly where they’ve spent their adult life, and acquire different support services as they need.
Generally, the first option potentially offers the least independence, while the fifth option offers the most potential independence—given sufficient financial resources.
In like manner, the first and second options are generally less expensive for the care recipient, but often a financial burden for family or community members. The fourth and fifth options tend to be more expensive for the care recipient and less burdensome for the family.
Financial wherewithal is one measure, and it clearly provides more options. However, more to the point, each of the five examples above require different combinations of liquidity, income, assets and insurances, as well as support services and advance preparations.
Each will require “funding.” Parts can be financed, other parts use “contributed time.” Without understanding a client’s perspective on capacities for independence, it is extremely difficult to provide the best financial advice.
It’s worth noting, each situation is different. A live-in grandparent who cares for grandchildren is a boon, while an elder move-in parent can burden a single adult child.
Counter intuitively, a child-care grandparent, with higher levels of social engagement, has better health and more independence. In contrast, the move-in parent can be isolated and dependent on a single adult child.
Dynamics like these cut across all financial segments. Advisors who understand are able to differentiate their practice, whether they elect to serve one or multiple financial segments.
Segmentation By Engagement
Another motivation is to engage socially. Engagement is built on interpersonal relationships, shared experiences, communication and proximity. Social engagement is about having a purpose, validating self-worth and making contributions. Like independence, it is difficult to overstate the impact of engagement on quality of life.