Special Needs Financial Planning Demystified!

Transcription

1 Special Needs Financial Planning Demystified! Presented By: Cynthia R. Haddad, CFP Sibling and Advocate Harvard University Work/Life Resources September 30, 2009 Cynthia R. Haddad, CFP and John W. Nadworny, CFP Affiliated with Bay Financial Associates LLC, 130 Turner Street, Bldg., 3, Ste. 230, P.O. Box 9086, Waltham, MA Financial Planning offered through Special Needs Financial Planning, LLC A Registered Investment Advisor Securities offered through LPL Financial, Member FINRA/SIPC March 2008

2 Outline 1) What is Financial Planning? 2) The Special Needs Planning Timeline TM 3) The Special Needs Planning Pyramid 4) The Five Factors of Special Needs Planning 5) Common Mistakes Made in Special Needs Financial Planning 6) Questions & Answers Cynthia R. Haddad, CFP and John W. Nadworny, CFP Affiliated with Bay Financial Associates LLC, 130 Turner Street, Bldg., 3, Ste. 230, P.O. Box 9086, Waltham, MA Financial Planning offered through Special Needs Financial Planning, LLC A Registered Investment Advisor Securities offered through LPL Financial, Member FINRA/SIPC March 2008

3 What Is Financial Planning? Financial planning is the process of wisely managing your finances to help achieve your goals, while at the same time negotiating the financial barriers that inevitably arise in life. Cynthia R. Haddad, CFP and John W. Nadworny, CFP Affiliated with Bay Financial Associates LLC, 130 Turner Street, Bldg., 3, Ste. 230, P.O. Box 9086, Waltham, MA Financial Planning offered through Special Needs Financial Planning, LLC A Registered Investment Advisor Securities offered through LPL Financial, Member FINRA/SIPC March 2008

4 Financial Planning Follows a Process STEP 1 Establish goals STEP 2 Gather data STEP 3 Analyze and evaluate the client s financial status STEP 4 Develop and present a plan STEP 5 Implement the plan STEP 6 Monitor the plan and make necessary adjustments

5 The Special Needs Planning Timeline TM Planning for Two Generations Early Intervention IEP Transition Planning Guardianship SSI College Residential Employment ISP Retirement SSDI Estate Distribution Birth Age 3 Age 15 Age 18 Age 22 Parent s Age 65 Parent s Death Child s Death Special Needs Planning Time Line Traditional Planning Time Line Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

6 Traditional Planning Pyramid Wealth distribution Charitable giving Estate tax planning Retirement planning College Planning Investment Planning PLUS Home purchase Cash management and budgeting Family needs Cash reserves Establish adequate emergency funds Insurance protection (risk management) Medical, home, automobile, and life Income protection, long-term disability, and long-term care Legal and estate planning Wills, trusts, health care proxies and power of attorney Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. NadwornyCFP, ChFC, MBA and Cynthia R Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

7 Special Needs Planning Pyramid Wealth distribution Gifts received Inheritances Lifetime support needs Transition planning Trust management services Lifetime residential needs Cash management and budgeting Supplemental expenses for child with disabilities Cash reserves Protect government benefits equals COMPREHENSIVE SPECIAL NEEDS PLANNING Insurance protection (risk management) Government-sponsored supplemental health care (Medicare/Medicaid) Lifetime supplemental needs Legal and estate planning Special needs trust, guardians, trustees, advocates, asset ownership, beneficiary designations, and Letter of Intent Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. NadwornyCFP, ChFC, MBA and Cynthia R Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

8 Planning For The Future The Five Factors of Special Needs Planning Legal Financial Special Needs Financial Planning Government Benefits Family & Support Emotional Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. NadwornyCFP, ChFC, MBA and Cynthia R Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

9 Special Needs Financial Planning Common Mistakes FAMILY & SUPPORT FACTORS: Family Values Careers Siblings Extended Family Members Family Support Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

10 Special Needs Financial Planning Common Mistakes EMOTIONAL FACTORS: Positive and Negative Feelings Connections Crisis Planning Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

11 Special Needs Financial Planning Common Mistakes GOVERNMENT BENEFITS FACTORS: Identifying and Maximizing Benefits Social Security Benefits Residential Options Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

12 Special Needs Financial Planning Common Mistakes LEGAL FACTORS: Special Needs Trusts Guardianship vs. Alternatives Estate Planning and Gifting Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

13 Special Needs Financial Planning Common Mistakes FINANCIAL FACTORS: Identifying Costs - Negotiable vs. Non-Negotiable Negotiable Insurance: Life, Disability, Long-Term Care, Medical Allocation of Assets Ownership of Assets Beneficiary Designations 529 College Savings Plans UTMA Accounts Reprinted by permission from The Special Needs Planning Guide: How to Prepare for Every Stage of Your Child s Life, by John W. Nadworny, CFP, ChFC, MBA and Cynthia R. Haddad, CFP Copyright 2007 by Paul H. Brookes Publishing Co., Inc. ( or ) Securities offered through LPL Financial: Waltham, MA, Member FINRA/SIPC

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15 Thank You!! Cynthia R. Haddad, CFP John W. Nadworny, CFP, ChFC Financial Planning offered through Special Needs Financial Planning LLC, RIA For more information, contact us at: or Cynthia R. Haddad, CFP and John W. Nadworny, CFP Affiliated with Bay Financial Associates LLC, 130 Turner Street, Bldg., 3, Ste. 230, P.O. Box 9086, Waltham, MA Financial Planning offered through Special Needs Financial Planning, LLC A Registered Investment Advisor Securities offered through LPL Financial, Member FINRA/SIPC March 2008