Financial Planning for Disabled Individuals
According to an article on CNBC by Sharon Epperson and Stephanie Dhue, 1 in 4 adults in the U.S. lives with a disability, and having a financial plan to address care is critical for long-term care and comfort.
As stated in the article, about 61 million adults in the U.S., or 1 in 4, live with a disability, according to the Centers for Disease Control and Prevention. A new study by Fidelity found more than half of caregivers of loved ones with disabilities had little time to prepare before assuming responsibility. Families should learn about and apply for all available benefits, set up targeted savings plans and seek out a supportive community.
One of the most critical steps in providing for a child or beneficiary with disabilities is applying for Supplemental Security Income or Social Security Disability Insurance, said James Lange, the president of Lange Financial Group in Pittsburgh. You can apply online on the Social Security Administration’s website.
Other potential sources of financial aid could include:
Employee benefits
Federal, state, and/or local government benefits
Setting up a targeted saving account such as ABLE
Optimizing Roth individual retirement account conversions
Setting up a special needs trust
Connecting with other families with disabled loved ones
Finding not-for-profit organizations for your particular type of disability
Another critical component of long-term financial planning for disabled individuals is home modifications for residential accessibility. Few homes are designed or built initially with installations for disabled individuals. Residential Accessibility, sometimes referred to as aging-in-place home modifications, is very important for the safety and comfort of a disabled individual. Work with a planner that is CAPS certified to identify home modifications that will help you or your loved one who is disabled live in their home longer and safer.
SUMMARY: Financial planning for disabled individuals is critical for long-term care and comfort. There are several options available to help with funding and financial planning. Include Residential Accessibility in this plan to ensure the disabled individual can live in their home as long as they wish.
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