In Long-Term Care Planning, Traditions Matter

Clients in Denver recently asked for my help with solving a financial problem.

They live in a Hispanic, multi-generational household and wanted to ensure the properties they owned — two houses — would stay in the family long-term. But they were worried the expenses associated with caring for aging parents and taking care of an adult child with a disability would ultimately force them to sell.

Given those concerns, I suggested a solution that, at first, went contrary to their elder parents' beliefs about family responsibilities: long-term care planning solutions.

As a second-generation Hispanic American myself, I know many older people in the Hispanic American community expect their children and grandchildren to take care of them when it becomes too difficult to take care of themselves independently.

Multi-generational households are still common in the Hispanic American community.

In 2022, 13.2% of Hispanic households had grandparents, parents, and children all living under the same roof, compared to 6.8% of all U.S. households (according to the U.S. Census).

But, at the same time, more and more young Hispanic Americans are living alone.

The traditional expectation of older Hispanic Americans — that their children will care for them — is becoming increasingly difficult.

The increasing cost of care and housing can make it difficult to afford the additional expenses without sacrificing the financial security of younger generations.

One Solution: Long-Term Care Planning

As seniors increasingly live under different roofs than their extended families, long-term care will become even more important.

It enables families to keep accumulated wealth and can help relieve the burden on adult children so they can prioritize their own financial goals.

Your Role as a Financial Advisor

As a financial advisor, you're in a unique position to guide clients through these complex situations.

It's essential for you to proactively engage in conversations about long-term care planning with all your clients, particularly those who may face additional cultural challenges.

Here are three tips for leading these conversations with your clients:

Establish trust with your younger clients: Older generations in the Hispanic American community are more likely to feel comfortable about different financial solutions if they see the impact of your advice with other family members.

Build strong relationships with your younger clients, who are responsible for supporting their parents while also providing care for young children.

The sandwich generation is often your greatest advocate, and the gateway to helping their elders understand important financial solutions.

Encourage open communication: Conversations around aging are necessary, even though they're never easy.

As financial advisors, we do more than provide financial guidance: We play a key role in helping clients have "heart-to-hearts" with their families.

Equip them with thought starters and questions they can use while talking with their older family members; some clients may even take you up on role-playing how they'd approach a difficult conversation.

By offering this type of support, you're not only showing your commitment to helping them achieve their financial goals but also showing how you truly care for them as a person.

Don't underestimate the power of real-life examples: I can't tell you how often I share other client stories (anonymously, of course) during client meetings.

Your client will not be the first family helped by long-term care planning, and it's amazing how far a simple real-life story goes.

People don't want to feel alone, so sharing real examples can help them feel more confident about exploring long-term care as an option.

Using these tips turned out to be just what my clients in Denver needed.

At first, few in this multi-generational household understood long-term care planning or why it was important.

Younger members were forming their own families and living apart, while a sister with a disability needed care, so long-term care planning helped give them the sense of reassurance they needed to know their houses would be kept in the family.

Long-term care is a vital aspect of financial planning, and financial advisors should proactively discuss with all clients, regardless of circumstances.

Start these conversations today to ensure your clients — including those in the Hispanic American community — understand the importance of long-term care planning and are equipped to make informed decisions to benefit their families.

Credit: Adobe Stock

Oscar Moreno is a Thrivent financial advisor based in Greenwood Village, Colorado.