Don't Go Broke
Yes, your parents' finances are an issue. But Suze Orman wants to be sure you safeguard yours.
Adult children who become caregivers often pay a steep price. According to a 2011 MetLife study, women older than 50 who leave the workforce early to fulfill this role forfeit about $324,000 in wages, Social Security payments, and retirement benefits. However, with some smart strategies, you can avoid sabotaging your financial future.
Ask an accountant about potential tax breaks.
You may be able to claim an elderly parent as a dependent if they have an annual income of less than $3,900 and you provide more than half their financial support. If you cover medical expenses, those costs may also be deductible.
If you become a full-time caregiver, don't support yourself by dipping into your 401(k)…
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O, The Oprah (Digital) - 1 Issue, November 2014