Health and Wealth: A Guide to Comprehensive Planning
Putting health at the heart of your wealth management experience.
Investing In Your Health
Living well, caring for family and finding your purpose
Good health and strong finances both require discipline and a long-term perspective. Just like a sound financial plan helps you weather market volatility, thoughtful attention to your health helps you stay prepared for what lies ahead.
In practice, that means investing early in your own well-being, understanding your family’s medical history and even preparing for the possibility of caring for others. Each of these steps play a critical role in safeguarding not only your physical and emotional health, but also your financial security and confidence.
Get a Head Start on Your Health
Many people don’t think seriously about their health until something goes wrong. But just as the best financial outcomes arise from long-term planning, the best health outcomes arise from consistent care and attention over many years. The earlier you begin investing in your well-being, the greater the rewards over time – not only in longevity, but in quality of life and financial resilience.
Modern life doesn’t always make investing in your health easy, though. Demanding careers, family obligations and social commitments can push self-care aside. The irony, though, is that the same physical and mental well-being are what enable you to manage stress, perform at work and meet the demands of daily life. Prioritizing wellness today can help you avoid serious health issues that might otherwise derail your career or reduce your income.
Of course, even the healthiest lifestyle can’t eliminate every risk. Not all healthcare costs are within your control, and unexpected illness can quickly alter your physical condition and financial outlook. That’s why comprehensive wealth planning should include strategies to prepare for medical uncertainty – from maintaining an emergency fund to ensuring adequate insurance coverage and building flexibility into your long-term plan.
Invest in your health like you invest in your 401(k). If you make those investments regularly, starting early, and continue through your life, you’re going to end up with a big bucket of money – or in this case, vitality – at the end.
Explore Your Family Medical History
Your family’s medical history can offer insightful information as you continue your own health journey. For example, a family history of type 2 diabetes may prompt healthier eating and more physical activity.
You’ll likely have to take the initiative to gain this knowledge yourself – and while conversations about medical conditions can be uncomfortable, explaining why it’s important for your health can prompt individuals to be more receptive.
- Reach out to blood relatives on both sides of the family. Gather as much information as possible about chronic and serious diseases, including the age at which these conditions were diagnosed.
- Share what you discover with your healthcare provider. Based on what your family members shared, your provider may recommend regular screenings, lifestyle changes or even medicinal changes.
- Consider genetic testing. Genetic counselors can identify markers that increase your likelihood of certain conditions, helping pin down a preventative care plan even further.
- Share your knowledge with other family members so they can take preventative measures as well.
The Power of Genetic Testing
Advances in science have recently ushered in genetic testing – a technology that can reveal mutations in your genes that may cause illness later in life. For example, it can demonstrate a predisposition to conditions like cystic fibrosis or common forms of cancer. If you already know your family has a history of a certain disease, genetic testing can give you more specific insights into your risk levels.
Genetic testing also has its limits. If you’re currently healthy, a positive test result doesn’t necessarily mean you’ll go on to develop a disease. Likewise, a negative result doesn’t always ensure you’re in the clear.
Before undergoing testing, speak with your doctor, a medical geneticist or genetic counselor about how you plan to interpret and act on the results.
Case Study – Kevin
Using Past Insights To Protect the Future
Since his father died a year ago, Kevin, 57, has thought a lot about his experience watching his retired parents deal with his father’s Alzheimer’s diagnosis. When his father was diagnosed, his mother became a full-time caregiver overnight. Kevin and his sister pitched in wherever they could, which included contributing to the cost of his in-home care.
The experience left a lasting impression. In addition to the emotional toll of caring for a sick parent, Kevin was keenly aware of the impact his financial contributions had on his own family’s financial wellness. He doesn’t want his wife or daughter to ever face the same strain.
Kevin shared his concerns with his financial advisor, who outlined planning strategies to help manage the risk of a long-term care event while keeping his other priorities – like helping his daughter through college – on track. With guidance from his advisor and an insurance expert, he chose a long-term care policy that offered the protection he wanted and included a death benefit if unused.
With a plan in place, Kevin and his wife could focus on their future knowing their family was protected from the potential of a major health event.
The scenario described is hypothetical and is intended solely to illustrate the types of financial planning services that may be provided. It does not represent the experience of any specific client. Actual client experiences and outcomes will vary depending on individual circumstances and it should not be interpreted as a guarantee of future results or client experience.
Plan for the Realities of Caregiving
These days, many people are navigating the overwhelming reality of caregiving for aging parents or relatives. According to recent data, nearly half of adults expect to take on caregiving responsibilities in the future – and the financial impact of that role can be significant: More than three-quarters of caregivers (78%) report regular out-of-pocket expenses, spending an average of $7,242 annually.5
Along with planning for the financial aspects of care, though, families should be intentional about maintaining a loved one’s sense of dignity, purpose and identity. Open communication, thoughtful planning and professional guidance can help families navigate these challenges with compassion, ensuring care supports both the well-being of the individual and the financial stability of those providing it.
The Caregiving Gap
The financial, physical and mental demands of caregiving disproportionately fall to women. Research shows that nearly 25% of women 55 and older provide daily care to a child or adult family member.6
In many cases, this means stepping away from their careers or reducing their working hours to care for an aging family member – a choice that can have long-term implications for income savings and retirement readiness. This unpaid labor, while deeply meaningful, can contribute to widening wealth gaps and increase the financial vulnerability of women later in life.
Caring for an Elderly Parent Checklist
Reach out to your Baird Financial Advisor for our “Caring for an Elderly Parent” checklist to ease this potentially challenging transition.
Case Study – Jessica & Travis
Navigating Sandwich Generation Responsibilities
Jessica and Travis, in their late 40s, have a lot on their plate: They’re raising three teenagers, navigating their own careers and saving for future goals like college and retirement. Recently, Jessica’s mother – who lives three hours away – has been struggling with deteriorating health conditions, requiring more support from her family.
The situation has become overwhelming: Jessica has had to unexpectedly take time off work several times to bring her mom to doctor’s appointments, leaving Travis to manage the household while juggling a demanding work schedule. Jessica realized it was time to sit down and have a candid conversation with her mother about her financial picture and wishes for the future.
During the emotional conversation with her mother, Jessica learned that Mary was ready to be closer to family and downsize from her three-bedroom home. Jessica also learned that Mary’s finances – including her nest egg and long-term care policy – could comfortably support her lifestyle and needs.
Jessica and Travis followed up with their Financial Advisor, who helped them understand how downsizing, assisted living or in home care could affect Mary’s – and their own – finances. Together, the family decided Mary would downsize to a condo near Jessica and Travis, easing logistics and reducing stress.
This experience not only created a solution that supported Mary while protecting Jessica and Travis’s wellbeing, but gave Jessica a deeper understanding of her family’s health history.
The scenario described is hypothetical and is intended solely to illustrate the types of financial planning services that may be provided. It does not represent the experience of any specific client. Actual client experiences and outcomes will vary depending on individual circumstances and it should not be interpreted as a guarantee of future results or client experience.
Prioritize Your Mental Health: Live With Purpose
The pace of daily life – whether driven by a demanding career, caregiving responsibilities, family obligations or other pressures – can quickly take up all your energy and attention. For some, that work may be deeply fulfilling. But for others, purpose is found outside of those responsibilities. In either case, uncovering and pursuing your purpose is essential to long-term mental well-being.
Take the time to consider what energizes you versus drains you. For some, maybe that means deepening their career role – but for others, maybe it means volunteering, traveling, pursuing creative interests or even exercising. Carving out even a small part of your daily life to pursue the things that bring you joy and fulfillment can make a significant difference in your mental health.
In retirement, this becomes even more prevalent. Failure to find meaning in retirement can actually lower your healthy life expectancy. For example, retirees who lack a sense of purpose face higher risks of heart disease and other medical conditions.7 Conversely, retirees who remain active report higher levels of happiness and greater longevity.
A Baird Financial Advisor team can help you define what truly matters as you move into your next chapter, aligning your wealth strategy with long-term well-being.
Ready to put health at the center of your plan?
We’d love to talk about building a wealth plan that supports your well-being at every stage of life.
