CRESCENDO NOTES
Special Needs Financial Planning
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We spent the Thanksgiving holiday with some friends of the family. There were over 25 members of this family gathered together spanning four generations who ranged in age from 3 to 90. Grandma at 90 was able to celebrate another Thanksgiving that included her great grandchildren. She spent a lot of time sitting in her chair smiling. I imagined that she was thinking of the memories of years past when her children were having babies, and watching them grow up to now have their own children, and grandchildren too. She was remembering
the stages of life
passing before her eyes with each holiday, and year gone by.
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Stage 2 - The School Years - Part 1
This month I will highlight
Stage 2
within the Special Needs Planning Timeline. This is the time when an individual with special needs enters the school system. I understand that during the ages of 4 to 18 a lot happens in an individuals life. I will break this up into the first years of this stage (Part 1) from
ages 4 to 14.
Entering school is a
transition
for both a parent and a child. There is so much more to learn and manage whether it’s the complexity of the Individual Education Plan (IEP) process or figuring out how to
emotionally navigate
all of the test scores that your child will be measured by. Although public school is mandatory until age 21, this stage goes through the ages of 4 to 18.
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I work with families who have multiple children, those with and without special needs. There are key areas that we focus on when completing planning for those families who have typical children. The photo below communicates what these are, and highlights planning areas that should be addressed.
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When raising a child with special needs from ages 4 to 14, there are additional planning areas that will be addressed. The educational journey for the majority of families is managed through the Individual Education Plan with involvement from all professionals within the school system. This is a time when parents may be gaining a greater understanding of their child's abilities and disabilities. Parents should be managing cash flow to allow for an emergency fund, evaluating and utilizing retirement plans at work, especially those with an employer match. If cash flow allows they may want to save in a traditional 529 College Savings Plan, as well as a 529 ABLE Savings Account for disability expenses not covered by private or public funds. Insurance protection is also a very important part of the financial planning.
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I have included a Case Study representing clients of mine who have multiple children, one of which has special needs. We had several areas of focus as the client needed assistance with cash flow and budgeting, their insurance which they were paying over $9500 for annually, as well as how to manage a traditional 529 Account they opened for their son with special needs upon his birth. We have been taking the work in stages as there are many parts of the comprehensive planning. Our Special Needs Financial Planning Services are able target all of the needs and challenges they h
ad for both their typical children and their son with special needs.
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As of November 17, 2017, there were
13,190
529 ABLE Accounts opened with
$45 Million
in assets according to Strategic Insights.
That's up from
10,114
accounts with
$35.6 million
in assets at the
end of June
. At the beginning of the year, there were
4,064
accounts with
$13.9
million in assets. This shows the extent to which the disabilities community is embracing the ABLE program.
There are now 29 state programs available.
2018 Contribution Limits for ABLE Accounts will be $15,000 – up $1,000 from 2017 limits.
The Center for Medicare and Medicaid Services (CMS) recently released guidance on how ABLE Accounts, and ABLE Funds may impact Medicaid eligibility, and the sco
pe of supports and services provided through the Medicaid program.
Click here to read more.
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Thank you to the Association of Women Lawyers who hosted me at Godfrey and Kahn S.C. I completed a presentation on the 529 ABLE Accounts, and how they work with Special Needs Trusts. I was impressed with the amount of questions I received and the interest in learning more about the accounts as a tool in estate planning. There were attorneys representing a number of firms in town including, Von Briesen, Godfrey & Kahn, Certus Legal Group.
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UPCOMING PRESENTATION
When:
Monday, January 22, 2018 @ 6pm
What:
Special Needs Planning Through the Lifestages
Where
:
Friendship Circle: 500 W. Silver Spring Dr., K-200 Glendale, WI
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Securities and Advisory Services offered through JW Cole Financial , a registered investment advisor. Member FINRA/SIPC.
Advisory Services offered through J.W. Cole Advisors, Inc. (JWCA). Crescendo Wealth Management and JWC/ JWCA are unaffiliated entities.
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