Category: Brandpoint Business & Finance

2018-05-17T09:01:00

(BPT) – True or false: You need to be wealthy to use a financial professional. It’s a common misconception, but in fact there are financial professionals that can help at various stages in life, whether you’re just starting out or nearing retirement. It can be a huge benefit to sit down with one to discuss options, investments, savings and retirement.

No matter where you are in your life — new to the workforce, starting a family, in your big earning years or nearing retirement — some guidance from a financial professional can give you the road map toward a financial future.

Here are some of the top reasons for seeing a financial professional.

You don’t have much saved for retirement …

More than half of Americans have less than $10,000 saved for retirement, according to the American Payroll Association. But even if you’re flirting with 50 and don’t have much saved, it’s not too late to start building wealth for your future. A financial professional will assess your situation and help develop a financial strategy with the goal of a comfortable retirement in mind.

… or you do, and you’re nearly ready to retire

Saving for retirement and knowing how to use that money wisely in retirement are two different animals. A financial professional can help you build a strategy that aims to use your retirement savings, help it grow and help it last.

Your parents are aging or ill

Caring for an aging or ill parent is tough emotionally, and ambiguity or strife around finances only makes it worse. Elder care is an expensive business, and how best to use Mom and Dad’s money to make sure they get the best care possible can be a complicated quagmire, especially if siblings are at odds about what to do. Sitting down with a financial professional is a great way to sort this all out with a neutral third party whose focus is most appropriately using the funds that are available.

You’re going through a life transition

Getting married, divorced, starting a family or dealing with a death in the family can affect your finances as well as your emotions. When you’re about to walk down the aisle, for example, nobody wants to think about budgets and bills, but financial disagreements can be one of the top causes of marital problems. A session with a financial professional can be a preemptive strike against future money troubles.

You want to start investing

Finding a financial professional who understands your situation, and can help design solutions for your day-to-day financial concerns, can go a long way toward building financial peace of mind, according to Salene Hitchcock-Gear, president of Prudential Advisors. You might be tempted to DIY, but a financial professional can work with you to create a strategy based on your timeline, risk tolerance and goals.

Bottom line? You don’t need to be a millionaire to benefit from the services of a financial professional, but working with one just might put you on the road to setting and achieving your financial goals. If you want more information about building a financial future for yourself and your family, visit Prudential at www.prudentialadvisors.com.

“Prudential Advisors” is a brand name of The Prudential Insurance Company of America and its subsidiaries located in Newark, New Jersey.

2018-05-16T08:01:00

(BPT) – With graduation season and summer break upon us, many parents may be on the hunt for a new car for their graduate. Memorial Day deals offer some of the best incentives of the year, so it’s crucial to know how to navigate what can be an overwhelming and exhausting process.

“USAA helps members find, finance and insure vehicles that are right for their personal needs and financial goals,” says Heather Pollard, vice president of Auto Experience at USAA. “We want to avoid you ever having to regret your purchase decision, or worse, lead to financial hardships where you can no longer afford to keep your vehicle.”

If you are one of the millions of Americans looking to buy a car, here are the five things you need to know before you step foot on a dealer’s lot.

Know what you can afford.

The first and most important question to answer before launching into the car-buying process is “how much can I afford?” Figuring this out will help you determine whether you are in the market for a new or used vehicle. A good starting point is to use 15-18 percent of your take-home pay as a gauge for your total vehicle budget including the loan, insurance, gas and maintenance.

Next decision, how will you pay for it? There are numerous ways to manage the financial burden for purchasing a new car, including taking out a loan. If you have decided to go the loan route, determine how much you can afford in monthly payments. Banks or another financial institution might offer lower interest rates than a car dealer. Aim to pay off the loan within three to five years.

“Get pre-approved for an auto loan amount and interest rate so you know where you stand before you begin shopping,” says Renée Horne, vice president of Consumer Lending at USAA Bank. “Look for low loan rates and flexible terms to fit your budget needs versus being steered by dealers into a decision solely based on monthly payment, which often results in paying more in interest for the overall loan term.”

Another idea is to sell or trade in your new graduate’s current vehicle. If you plan to do this, factor in the cash value of that car and then add your planned down payment, typically 15-20 percent. You can use online tools such as USAA’s Auto Loan Calculator to get an estimate of what the end price tag will be.

Determine the total cost of ownership.

It is important to understand the total cost of ownership before surprising your graduate with the car of their dreams. Everything from gas to auto insurance will be an extra expense added on to the monthly cost for a new or used car and something everyone in the family needs to consider.

When receiving an auto insurance quote, note that collision and comprehensive coverage generally cost less for used cars. If purchasing an older car, consider getting pricing for Extended Vehicle Protection coverage before you go to the dealer.

Keep an open mind.

Once you have established what you can afford and the total cost of ownership, it is time to discover what features and styles you or your teen want in a car. Prioritize a list of the features you would like to see. For the teen in your life, safety is usually at the top. Next, assess how much they will be using this car and what for. Are they commuting to school or a job? Remember to keep an open mind and be flexible — stay open to two or three models that would meet your teen driver’s needs and your or their budget.

Do your research.

Everyone can agree that dealerships can be overwhelming and intimidating. Research your market first. Try the USAA Car Buying Service to see what’s out there and find vehicles that come with exclusive member discounts.

If you are looking into the used car market, always run a background check. You can get a vehicle history report from Carfax, which can help verify ownership history, mileage and accident history. Also, make sure the used vehicle has never been salvaged by entering the vehicle identification number into the National Insurance Crime Bureau’s system.

Go for a test drive.

After picking out a few of your top favorites, it is time to see how the car operates on the real road. Hit the highway to properly gauge a car’s performance, and inspect the car for mileage, tread, etc. If possible, run the car by a trusted mechanic for an under-the-hood inspection to forecast longevity and maintenance needs. Remember, factory warranties usually transfer depending on the mileage.

2018-05-15T09:01:00

(BPT) – How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business.

Growth is one of the biggest indicators of small business success. According to the Small Business Administration (SBA), more than 500,000 businesses have between 20 and 99 employees as of 2014. These established businesses are in the upper end of growth but have not yet met the threshold of being a medium business. In fact, 39 percent of growing companies — between three to five years old and seeking more than $100,000 — consider accessibility to capital their greatest concern. It’s during this stage businesses typically are faced with growth challenges.

Where can they turn for funding? These three alternative options may be worth considering.

1. Lines of credit

Lines of credit, provided by online lending platforms like Kabbage, offer established businesses in all industries the flexibility and convenience of accessible capital.

With Kabbage there are no fees to apply for a line of credit or annual costs to access funding. Small businesses don’t pay a thing to see for how much their business can qualify. Kabbage offers access to lines of credit up to $250,000, helping small to mid-market businesses access funding for operational costs and strategic investments like cash flow needs, purchasing specialized equipment, business expansions and launching high-growth marketing projects. There are also no obligations in how much a business is required to take. Businesses can take the amount they need from the line of credit when they need it, with no hidden fees or pre-payment penalties.

Lines of credit are faster and more flexible than traditional loans. In fact, Kabbage offers a loan application that can be finished in minutes — even through a mobile app — eliminating the time usually spent waiting in lines or filling out numerous forms.

2. Merchant cash advances

Some established businesses turn to a merchant cash advance (MCA) due to lower credit ratings, not having enough assets to provide as collateral, short-term financing needs or the flexible repayment terms.

Essentially, an MCA is an advance on future credit card payments. The cash advance is decided upon by the funding company, with the specific amount being paid back in full plus fees and interest.

With merchant cash advances, borrowers pay a set percentage of their credit card sales and make payments every time they receive credit card payments from clients.

3. Invoice factoring

Invoice factoring is another funding option established businesses use in lieu of bank loans. Factoring is the process of selling accounts receivables to a financing company for immediate cash.

Factoring helps businesses receive cash much faster than waiting for clients to pay their invoices. The financing company, known as the “factor,” pays the business the majority of the invoice upfront. Once the business receives payment from the client, they send those funds to the factor. The factor then pays the remaining percentage to the business.

Factors are more concerned with the financial health of the business’s clients rather than the business itself. These companies collect directly from a company’s clients and customers, sometimes requiring payment history validation from the business. A benefit of factoring is not assuming debt for money received; however, if clients are not creditworthy, you may not receive funding.

To maximize this growth, consider looking online at www.kabbage.com/yes to learn about and find new options that fit your business. Merchant cash advances, invoice factoring, and lines of credit are three alternative solutions that help growing businesses go beyond traditional financing methods.

2018-04-26T14:49:00

(BPT) – In September 2018, thousands of people from around the world will congregate in an unlikely place: Wausau, Wisconsin.

The diverse crowd will gather for the second International Wisconsin Ginseng Festival. While many may be surprised that such an event would be held in the middle of Wisconsin’s rolling hills and scenic lakes, it is a $50 million local industry with a long history. In the mid-1970s Hmong immigrants, primarily from Vietnam, brought their entrepreneurial skills and revitalized the local ginseng industry. Welcomed by a friendly community that continues to foster an entrepreneurial spirit, Hsu’s Ginseng, now under the leadership of original founder’s son Will Hsu, has grown to be the largest integrated ginseng growing and retailing operation in the U.S. Wausau’s industrious self-starters and newcomers grew a multimillion-dollar industry, and the region continues to incubate entrepreneurs across an array of business sectors.

Local innovation

Wausau, ranked recently by ZipRecruiter as a Top 10 Job Market for 2018, has a track record of successful public-private development partnerships and hosts a thriving incubator — the Wausau Entrepreneurial and Education Center — to help local entrepreneurs get started and help established businesses grow. For instance, Wausau-based Resilient Technologies, now a business of Bridgestone Americas, was approached by the U.S. government to develop puncture-resistant tires. In an effort to make military vehicles more safe, they used strong local manufacturing ties to develop a first-of-its-kind non-pneumatic tire in Wausau’s incubator. Bridgestone is now looking for ways to apply the technology to its consumer and commercial portfolio, and develop next-generation tires that offer extended mobility.

“A lot of people don’t know these types of projects are happening here, but the city of Wausau is a great partner and the city provides our team with a wonderful place to call home,” says Louis Stark, operations manager, Resilient Technologies.

The availability of an experienced workforce that can develop these specialized tires for the U.S. military is the same workforce that has made an impact on other areas of Wausau’s economy.

Entrepreneurial workforce

Sometimes entrepreneurial opportunities spring from unusual skills. Some residents in Wausau have deep connections to artistic traditions, including sewing. Bob Jacquart, chief executive officer of Stormy Kromer, makers of hats and rugged outerwear, says he now relies on the sewing skills of Wausau’s residents to create one of the Midwest’s most storied brands.

Stormy Kromer’s operations in Wausau have been successful, outpacing production in the company’s headquarters in Ironwood, Michigan.

“I could not have felt more welcome and city leaders could not have been more accommodating in helping Stormy Kromer find a suitable space as well as skilled workers in Wausau,” says Jacquart.

Incubating community

The local economic conditions and support environment that allowed these Wausau-based companies to thrive are the very conditions that led Time Magazine to label Wausau a “middle-class paradise” last year.

A combination of affordability, welcoming atmosphere and economic diversity is attracting young people, new industries and incubating unlikely entrepreneurs. Aiming to make the most out of these trends, the city is responding in kind. New growth and development have hit record levels across diverse sectors of growing businesses in Wausau. The city’s warm attitude toward entrepreneurs and diversity further complement its traditional economic base in metals manufacturing, building materials, insurance, informational technology and health care.

To learn more, visit www.wausome.com.

2018-04-26T09:01:00

(BPT) – What helps a community thrive? It’s a question with answers as variable as the people responding. Some might say that healthy communities are safe communities. To others, flourishing communities experience significant economic growth and stability. Still others would insist a thriving community may simply be one where people work together to support goals for the betterment of everyone.

As demonstrated through extensive research by the Thriving Cities project, the strongest communities across the nation exhibit several of these qualities but they also have the ability to assemble unconventional coalitions to serve their residents. One of the brightest examples of this philosophy is when businesses and entrepreneurs partner with educators to create programs that support the common good.

So where is this taking place? Here are three examples of communities where such innovations are occurring right now.

The Hilltop Artists

“Using glass arts to connect young people from diverse cultural and economic backgrounds to better futures” is the mantra of this Tacoma, Washington-based art school. Founded by Dale Chihuly and Kathy Kaperick in 1994 and through support from The M.J. Murdock Charitable Trust, Hilltop Artists partners with several schools in the Tacoma School District to provide students an alternative to violence and delinquency through the creation of glass art made while working together. In addition to an artistic education, students also gain business knowledge as they help market and sell commissioned pieces.

The efforts are paying off, as over the last four years, Team Production students have posted a perfect 100 percent graduation rate and 58 percent have gone on to pursue post-secondary education. Some of them likely doing so in art.

Garden City Harvest

Based in Missoula, Montana, Garden City Harvest grows sustainable produce for members of the local community in need. Through a partnership between companies like Missoula Federal Credit Union, educators including Willard Alternative High School, the University of Montana and organizations such as Missoula Youth Drug Court and the Human Resources Council, at-risk teenagers can gain on-the-job training through the Youth Farm employment program. The project also helps them to build confidence, leadership skills and a strong work ethic through the produce they grow.

In addition to benefiting the students who take part in the program, Garden City Harvest supports those in need throughout the Missoula area. Today more than 90 percent of produce consumed in Montana is shipped from out of state and 20 percent of Missoulans live in poverty. The efforts of Garden City Harvest are working to change those numbers on both fronts.

Zambia Gold

Launched by Gonzaga University, Zambia Gold utilizes a team of interns to collaborate with farmers in Zambia to import honey for sale in the U.S. Supported through the university and nonprofit foundations like The M.J. Murdock Charitable Trust, Zambia Gold does more than just give the people of Zambia an economic outlet. It also boosts educational opportunities in the country by filling Zambia’s Chilena Basic School library with more than 20,000 books over the last eight years while offering valuable training in business and service to the Washington-based interns. This makes for a partnership that is economically, educationally, and, of course, deliciously beneficial all around.

Improvements in your own community

The examples above are just three ways in which organizations and educators have come together to make meaningful community changes in an unconventional way. Now, what can you do in your own community to create a unique change for the common good? What can you do to make your already great community even better?

For inspiration and to learn more about the ways the M.J. Murdock Charitable Trust supports educational partnerships such as these, visit Murdocktrust.org/education.

2018-04-25T10:03:00

(BPT) – It seems like every quarter there’s a new story about how hackers breached a major company’s cyber-defenses and stole millions of pieces of highly sensitive data. While most of the news coverage goes to data breaches that hit major corporations, small businesses are frequently the target of cyber attacks as well.

In fact, the risk for small businesses is even more significant because many do not have the capacity to withstand the blow that a cyberattack could deal. According to the National Cyber Security Alliance, 60 percent of small businesses will go out of business within six months of a cyberattack.

To help mitigate the risks, companies like Dell do extensive training for team members. Such training is important because only 48 percent of cyberattacks are perpetuated with malicious intent. The rest? Human error.

Let’s take a look behind the scenes at Dell to discuss seven of the top tips they use to keep their data safe, advice that can go a long way to help protect your small business.

1. Security is a mindset

The best software for cybersecurity is a company-wide mindset. Everyone should be vigilant, and conscious of security threats and the value of the company’s data and assets. This mindset is expansive and includes being careful when sharing on social networks, as well as when disclosing sensitive information through email or the phone.

2. Practice proper password management

Remembering numerous different passwords can be a hassle, but nonetheless, it’s vital that employees resist the temptation to reuse passwords. Use a strong mix of characters and always avoid writing down passwords.

3. Protect and manage your device

Employees should be reminded to always lock their devices and to avoid leaving devices unattended. In addition, they should be aware that malware can spread through flash drives, external hard drives and personal smartphones, so they need to be careful what they plug into.

4. Avoid attachments and don’t click on email links

This is one of the fundamentals of cybersecurity. Before clicking on an email link or downloading an attachment, make sure you know the sender. If anything seems suspicious or unusual, don’t click! Instead, contact the person to verify if they sent the email.

5. Work on unsecured networks with caution

In the era of the remote office, more people are working remotely than ever before. It’s important that employees know what they can and cannot use when on unsecured networks such as those in coffee shops. Also avoid browsing on an untrusted network, as this can lead to interception of financial, e-commerce and other sensitive data.

6. Back up data regularly

The danger of a cyberattack is not only in having financial and personal records stolen, but in losing large amounts of data that is vital for running your business. Therefore, regular data backups are essential. This is a kind of insurance you can’t do without in the modern world.

7. Monitor your accounts

If you or any employee notices unfamiliar activity in your accounts, it’s a sign the account may be compromised. Add an extra layer of security by adding a two-factor authentication (such as asking users to answer a question only they would know) to accounts whenever possible.

Because tech and IT are at the center of today’s small businesses, you can’t be too careful when it comes to protecting your data. For more on how you can improve cybersecurity where you work, contact Dell and find out how smart, secure tech can empower your company.

2018-04-23T13:21:00

(BPT) – Across the nation, thousands of seniors have used a Home Equity Conversion Mortgage (HECM), commonly called a reverse mortgage loan, as a savvy way to access the equity in their homes. These mortgages can be shaped to fit an individual’s needs, and with new consumer safeguards in place, many seniors are discovering that it is an important part of their retirement strategy. For those interested in a reverse mortgage loan, there are six main phases to the process.

2018-04-23T13:15:00

(BPT) – On June 15, 1976, the U.S. Department of Housing and Urban Development (HUD) instituted the Federal Manufactured Home Construction and Safety Standards — more commonly referred to as the “HUD Code.”

With these regulations, HUD defined the safety and quality standards required for construction of a manufactured home.

This was a pivotal moment for the manufactured home industry. Prior to the HUD Code, these homes were built with portability as a primary focus and were commonly referred to as “mobile homes” — hence the difference in terms.

You will often see the terms “mobile” and “manufactured” used interchangeably. But, according to the Manufactured Housing Institute, the HUD code draws a line of distinction between the two.

A mobile home refers to a home manufactured prior to the standards set by the HUD Code. Back then, the homes were built to voluntary industry standards enforced at the state level in 45 out of the 48 states in the continental U.S.

With the birth of the HUD Code, manufactured home now refers to a factory-built home constructed to those federal standards.

The HUD Code regulates, among other things, energy-efficiency standards, durability, transportability and quality. It also sets standards for the performance of HVAC, plumbing and electrical systems.

While the difference in quality between today’s manufactured homes and pre-HUD Code mobile homes is evident, you may be wondering how the terms “mobile” and “manufactured” are so often confused.

One similarity that may be the biggest contributor to the confusion is titling.

Like the mobile homes built prior to HUD Code, modern manufactured homes also require a title. So what does that mean?

Requirements for titling vary by state, but generally a manufactured home requires a title much like an automobile. This is because a manufactured home is considered personal property.

As personal property, a manufactured home is typically taxed separately from the land on which it sits. Visit https://drivinglaws.aaa.com/ for more general information on state-specific laws regarding the titling of manufactured homes.

State laws determine the process for surrendering the manufactured home title when the home is permanently affixed to the land, becomes part of the real estate, and is no longer considered personal property separate from the land.

Like manufactured homes, modular homes are also constructed indoors, sheltered from the elements. But unlike manufactured homes, modular homes do not require a title. Since they are built to International Residential Code standards and not the HUD Code, ownership of modular homes is treated the same as site-built homes.

For more information from Vanderbilt Mortgage and Finance Inc. about manufactured or modular homes, visit www.vmfhomeloan.com/first-time-buyers/.

Vanderbilt Mortgage and Finance, Inc., 500 Alcoa Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, (http://www.nmlsconsumeraccess.org/), AZ Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license, GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, Licensed by the NH Banking Department, MT Lic. #1561, Licensed by PA Dept. of Banking.

2018-04-19T13:01:00

(BPT) – The value of homeowners insurance is often thrust into the national spotlight when natural disasters happen. The devastation and financial loss they can cause reinforces the importance of making sure you have adequate insurance coverage to rebuild if disaster strikes your home. In 2017 alone, the U.S. was struck by 16 separate billion-dollar disaster events, resulting in a record-breaking $300 billion in damage, according to the National Oceanic and Atmospheric Administration.

Thankfully, most Americans don’t experience large-scale natural catastrophes, but millions of homeowners do experience some kind of property loss each year and need to make an insurance claim. The most commonly reported homeowners insurance claims are actually the result of events that can occur at any time, so it’s important for homeowners to be prepared for these potential risks.

Water damage claims are most common

“Water claims are the ones we see most often,” says Christopher O’Rourke, Vice President of Property Claims at Mercury Insurance. “While certain perils are seasonal, water damage can occur any time of year. It’s important for homeowners to conduct routine maintenance of appliance hoses and water pipes to make sure there aren’t cracks or leaks and, if any are detected, have them repaired or replaced immediately.

“Another thing everyone can do to protect their homes from leaks is turn off their main water supply when they’re away for an extended period of time. No one wants to return from a relaxing vacation to find water running through their home.”

Smart home technology also delivers an extra layer of protection for homeowners by providing 24/7 monitoring to help detect water pipe leaks. Professionally installed water pressure sensors, for example, work with most smartphones and can, among other things, automatically shut off the home’s main water supply if a leak or burst pipe is detected. And the best part is that insurance companies like Mercury Insurance will often provide a discount for homes that implement this technology.

O’Rourke also notes that most homeowners insurance policies don’t cover flood damage caused by rising water from storms or overflowing bodies of water, so he recommends homeowners consult with their local insurance agent to learn how to protect against these types of events.

Fire damage is a concern for homeowners

While water claims are the most common, fire damage is another possible concern for homeowners and can be caused in several ways. The National Fire Protection Association reports nearly half a million structure fires occurred in 2016, resulting in $7.5 billion in property damage, and wildfires ravaged California in 2017, leading to one of the year’s billion-dollar disaster events. O’Rourke suggests controlling the things you can and mitigating against the perils you can’t.

“Most home fires happen when people are inattentive or negligent. These fires are preventable if people don’t leave things like lit stoves, fireplaces, candles or portable heat sources unattended. You should also refrain from overloading electrical outlets and using appliances with frayed electrical cords,” he says. “These things seem like common sense, but it’s amazing how many claims we see that result from simply not paying attention.

“Wildfires can be extremely scary and dangerous and there is often little warning when they sweep through areas, leaving homeowners little time to protect their homes. Most of this work needs to be done before a fire erupts. Homeowners can mitigate against this risk by keeping their yards free of dry brush, grass clippings and twigs, keep tree branches trimmed and bushes pruned. They should also make sure their roofs and gutters are cleared of leaves and debris.”

Theft can be costly

Theft doesn’t necessarily pose a threat to the physical structure of a home, but it too can be costly and it often leaves homeowners feeling scared and violated. The FBI’s Universal Crime Report estimates 1.5 million burglaries occurred in 2016 — with residential properties accounting for 69.5 percent of these offenses.

Homeowners can help safeguard against theft by taking simple, but often overlooked precautions like ensuring doors and windows are locked, and not leaving spare keys in easy-to-find locations. Several smart home devices can also aid in deterring potential thieves by allowing homeowners to adjust lights, monitor security cameras and activate security systems from their smartphones even when they’re away from home.

“Our claims team strives to get our customers back on their feet after a loss. Our hope is that people never experience such an event in the first place, but if they do we want them to know that it is our goal to help them get their lives back to normal as quickly as possible,” adds O’Rourke.

Mercury Insurance provides homeowners with additional tips to protect against common insurance claims. Visit https://blog.mercuryinsurance.com to learn more.

2018-04-18T13:59:00

(BPT) – Helping a parent stay active and healthy at home can be achieved with careful planning. The rewards of personally caring for, or managing the care of, a loved one who needs help are innumerable. It’s an opportunity to give back and to offer a return on the loving investment they once made in us. The trade-off is that in-home care costs money; money that may not be available.

In-home care may be provided by loved ones, family, friends, neighbors or professional caregivers. It typically includes assistance with activities of daily living — bathing, dressing, toileting, eating and walking — as well as companionship, medication reminders, laundry, light housekeeping, errands, shopping and transportation.

If your parent is under a doctor’s care because of a recent illness or injury, home healthcare companies can provide skilled nursing services in their house, such as physical therapy, wound care or speech therapy.

Whether caregiving services are provided by a professional or family member, either option can impact your family’s finances. An eight-hour-a-day, five-day-a-week professional caregiver costs about $40,000 a year, while 24/7 care can be as much as $150,000 a year. If a parent depends on family for care, it can take that caregiver away from his or her job and earnings, affect business opportunities and reduce future Social Security income.

Medicare, the federal government’s health insurance program for people aged 65 and over, covers some home health care if prescribed by a doctor, but not home-delivered meals, non-medical home care, or 24/7 care. Medicaid, a joint federal and state program that helps with medical costs, has very low asset and income restrictions.

Depending on where your parent lives, they might qualify for a Medicaid waiver that can help with in-home care costs. Doug Lueder, owner of Prosper Home Care, an independent home care agency based in Atlanta, says, “The purpose of the (Medicaid) waiver program is it can help individuals stay at home in a healthy, safe environment for the same amount of money or less than it would cost for that person to be in a facility. States would rather be able to keep people at home, and in general statistics show people are happier and they have better outcomes at home.”

Another possible source of funds may be your parents’ home. For many Americans, the equity they have built up in their homes is their single largest financial asset, typically comprising more than half of their net worth.

Older homeowners can access their equity by selling their house and moving into a less expensive, more manageable, place to live and then use the leftover proceeds to pay for professional care.

For those who would rather stay in their current home, as most people would prefer to do, options include a home equity loan, home equity line of credit, or a reverse mortgage.

With a reverse mortgage, borrowers have the flexibility to use their loan proceeds however they wish, including to pay for in-home care or other medical expenses. As long as the terms of the loan are met, the balance doesn’t need to be repaid until the last surviving borrower has passed away or permanently left the home. To learn more about this option, visit the National Reverse Mortgage Lenders Association’s consumer education website reversemortgage.org/adultchildren.

If you care for a loved one, consider following these tips from the Family Caregiver Alliance, the nation’s oldest nonprofit organization dedicated to helping families prepare and cope with caring for loved ones at home.

First steps for new caregivers

* Identify yourself as a caregiver to your loved one.

* Get a good diagnosis — from a specialist or geriatrician if necessary — of your loved one’s health condition

* Learn what specific skills you might need to care for someone with this diagnosis. Caring for someone with dementia is different from caring for someone with chronic heart disease.

* Talk about finances and healthcare wishes.

* Complete legal paperwork, e.g., Powers of Attorney, Advance Directives.

* Bring family and friends together to discuss care.

* Keep them up to date on the current situation.

* Identify resources, both personal and in the community.

* Find support for yourself and your loved one.

* Remember, you are not alone.

Most importantly, remember that taking care of yourself is as important as taking care of someone else.

First steps are from the fact sheet Caregiving 101: On Being a Caregiver ©2016, published with permission from Family Caregiver Alliance, www.caregiver.org.