8 Ways Advisors Can Support Special-Needs Planning

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Planning for retirement and life after work is challenging enough when taking just an individual or a married couple into account, but the effort becomes even more complicated when the needs of the next generation are also brought into the equation.

In the experience of Cynthia Haddad, an expert in financial planning for people with disabilities and their families, matters grow even more difficult when clients have children with physical or cognitive disabilities that leave them requiring significant daily support.

As Haddad explores on the latest episode of Morningstar’s The Long View podcast, clients in this situation face a trying mix of financial and emotional concerns that can make peace of mind seem like an impossible goal.

Fortunately, as Haddad tells podcast hosts Christine Benz and Jeff Ptak, there are some powerful planning tools available to help clients answer some of their biggest outstanding questions. These include distinct types of trusts and other estate planning tools and techniques specifically designed to support parents with children unable to provide for themselves financially.

Haddad was the co-founder of Affinia Financial Group, which was just acquired by Sequoia Financial Group, and she holds both the certified financial planner and chartered special needs consultant designations. Post acquisition, Haddad is now senior vice president and wealth advisor for Sequoia’s special-needs planning practice.

Notably, Haddad has a brother in his 60s with developmental disabilities, giving her significant experience with caregiving and its intersection with financial planning.

As Haddad observes, a financial advisor cannot change the underlying struggles their clients are facing when it comes to providing for children with severe disabilities, but they can do a lot to ease their worries on the financial side. In Haddad’s experience, this work can in turn provide meaningful emotional relief to parents who worry about what will happen to their kids if and when they are no longer able to provide and manage their care.

See the slideshow for the eight top ways advisors can use trusts and other sophisticated planning techniques to support clients facing this difficult situation.