Have you considered whether your mom has old 401(k) accounts from previous jobs?

This situation is far more common than most people think. A 2023 report from Capitalize revealed something startling: nearly 30 million Americans have abandoned 401(k) accounts worth $1.65 trillion. People simply forgot about them when changing employers.

These forgotten accounts could dramatically change your mother’s care options. Start with the U.S. Department of Labor’s Lost and Found Database. However, if your mom is experiencing memory issues or confusion, accessing these funds becomes significantly more complex. You may need to pursue guardianship proceedings first.

Searching for Lost Retirement Benefits

To locate forgotten retirement accounts systematically, follow these steps:

• Contact former employers directly through their human resources departments
• Search the National Registry of Unclaimed Retirement Benefits at unclaimedretirementbenefits.com
• Use the Department of Labor’s abandoned plan database
• Check with the Pension Benefit Guaranty Corporation for terminated pension plans
• Review old tax returns for 1099-R forms indicating retirement distributions

Remember that accessing these accounts may require legal documentation, especially if your parent cannot manage their own affairs.

Navigating Medicaid and Assisted Living Realities

Let me be direct about Medicaid limitations. Traditional Medicaid typically doesn’t cover room and board at assisted living facilities. According to 2024 regulations, Medicaid primarily covers medical services and skilled nursing care, not the housing costs associated with assisted living. This reality forces families into difficult decisions about where their loved ones can receive care.

However, don’t give up hope entirely. Many assisted and independent living communities accept Medicaid Home and Community-Based Service Waivers. These programs, administered by individual states, can help offset some costs by covering personal care services, adult day programs, and home modifications.

Understanding Medicaid Waiver Programs

HCBS waivers vary significantly by state, but generally include:

• Personal care assistance with daily activities
• Adult day health services
• Home-delivered meals
• Transportation to medical appointments
• Respite care for family caregivers

Nonprofit organizations and church-affiliated facilities often provide sliding scale payment options or additional financial assistance. While these facilities might lack luxury amenities, they still offer safe, dignified care that meets state licensing requirements.

Private facilities remain viable if family members can contribute financially. According to SeniorLiving.org, assisted living costs average about $6,100 monthly. This amount varies considerably based on location, required care level, and length of stay commitments.

The Insurance Safety Net Most People Overlook

Long-term care insurance represents one of the most valuable financial tools for senior care, yet it remains underutilized. This specialized coverage handles expenses that regular health insurance won’t cover, including in-home assistance, nursing homes, and assisted living facilities.

Several types are available: hybrid life policies, annuities with long-term care benefits, short-term care coverage, extended care plans, home health care policies, and traditional long-term care insurance. Each option suits different financial situations and care preferences.

Types of Long-Term Care Coverage

Understanding your options helps you make informed decisions:

• Traditional long-term care insurance provides dedicated coverage for care services
• Hybrid life insurance policies combine death benefits with care coverage
• Annuities with care riders offer income plus long-term care benefits
• Short-term care policies cover temporary care needs at lower premiums

The challenge? This insurance works best when purchased before health problems develop. If your parent already faces cognitive issues, obtaining new coverage becomes substantially harder and more expensive.

Having Difficult Conversations Before Crisis Hits

Why do families scramble when parents need care? Usually because nobody wanted these uncomfortable conversations during calmer times. If your parents are approaching retirement or already retired with some savings, discussing future care costs now prevents panicked decision-making later.

Power of attorney discussions must happen while your parent remains mentally competent. Once cognitive problems develop, or if a judge declares someone mentally unfit, they cannot legally grant power of attorney. Then you face lengthy, expensive guardianship or conservatorship court proceedings just to gain financial authority.

Essential Legal Documents to Discuss

Before cognitive decline occurs, ensure these documents are in place:

• Durable Power of Attorney for Finances allows you to manage financial affairs
• Healthcare Power of Attorney grants medical decision-making authority
• Living Will outlines end-of-life care preferences
• HIPAA Authorization permits access to medical information

Consider these conversations as gifts. You’re giving your parent opportunities to express their wishes clearly, and you’re giving yourself legal tools to honor those wishes when needed.

Building Your Own Financial Foundation

Watching a parent struggle with limited Social Security payments serves as a wake-up call about your own retirement planning. Based on 2025 Social Security Administration data, the average monthly benefit is $1,976 for retired workers. This amount rarely covers comprehensive care costs, making additional savings essential.

The critical question becomes: how do you avoid putting your children in this same position decades from now?

Automatic investing platforms make wealth building surprisingly manageable. Services like Acorns round up debit or credit card purchases to the nearest dollar, then invest that spare change in diversified portfolios of low-cost ETFs. You’re essentially converting everyday spending into future financial security without changing your lifestyle.

Starting Your Investment Strategy

Begin building wealth with these practical steps:

• Open an automatic investment account with round-up features
• Set up regular monthly contributions, even if small
• Choose diversified, low-cost index funds or ETFs
• Increase contributions annually or when income rises
• Avoid withdrawing funds except for true emergencies

Some platforms offer sign-up bonuses, like $20 in bonus investments for new users who commit to regular contributions. These small amounts compound over time and could create substantial retirement cushions.

Alternative Assets for Inflation Protection

Traditional stocks and bonds might not provide adequate protection against rising healthcare costs and inflation. According to financial experts, healthcare costs have historically risen faster than general inflation, making diversification crucial for retirement planning.

Alternative investments like precious metals and real estate can stabilize your retirement portfolio during economic uncertainty. These assets often maintain value when traditional investments struggle.

Precious Metals in Retirement Planning

Gold IRAs allow direct investment in physical precious metals instead of paper assets, potentially offering better inflation protection. These tax-advantaged accounts help preserve purchasing power over decades. The IRS permits gold, silver, platinum, and palladium investments in qualified retirement accounts, subject to specific purity requirements.

Some providers offer substantial incentives, up to $20,000 in free metals on qualifying purchases. However, precious metals IRAs involve storage fees, insurance costs, and dealer markups that reduce overall returns.

Accessing Professional-Grade Real Estate Investments

Previously, commercial real estate investing required millions of dollars and insider connections. Modern investment platforms have democratized access through Real Estate Investment Trusts (REITs) and crowdfunding platforms.

The commercial real estate sector is valued at $22.5 trillion and historically offers higher potential returns than residential properties due to longer lease terms, higher rental rates, and greater appreciation potential.

Commercial Real Estate Investment Options

Today’s investors can access commercial properties through:

• Publicly traded REITs available through any brokerage account
• Private REITs offering potentially higher returns with less liquidity
• Real estate crowdfunding platforms with lower minimum investments
• Direct property ownership through syndications or partnerships

Accredited investors can now participate in grocery-anchored commercial properties without landlord responsibilities. These investments typically require $50,000 minimum commitments, offering ownership shares in properties leased by national brands like Whole Foods, Kroger, and Walmart.

Since these retailers provide essential community goods, they tend to resist inflation better than many other industries. Professional management handles tenant issues, property maintenance, and daily operations while you receive commercial real estate returns.

Creating a Comprehensive Care Strategy

Your mother’s current situation is challenging but doesn’t have to define her remaining years. By systematically searching for forgotten assets, understanding Medicaid waiver programs, and exploring nonprofit care options, you might discover more choices than initially apparent.

Start by creating a complete financial inventory. List all known assets, including bank accounts, retirement plans, insurance policies, and potential unclaimed property. Contact your state’s unclaimed property office, as many states hold billions in forgotten assets.

Building a Support Network

Caring for aging parents requires more than financial resources:

• Connect with local Area Agency on Aging for guidance and services
• Join caregiver support groups for emotional support and practical advice
• Consult with elder law attorneys for legal planning assistance
• Work with geriatric care managers for comprehensive care coordination

Your own financial planning should incorporate lessons from this experience. Diversified investment strategies including both traditional and alternative assets help ensure your children never face the same difficult decisions you’re confronting now.

Combining automatic investing, precious metals protection, and commercial real estate exposure creates solid foundations for handling future care costs. Starting these strategies today, even with modest amounts, positions you for financial security when you need it most.

Remember that caring for aging parents often provides our first real glimpse of what we’ll need ourselves someday. The steps you take now, both for your mother and yourself, will determine whether the next generation faces crisis or confidence when making these important decisions. According to SSA guidelines, Social Security benefits alone rarely cover comprehensive care costs, making additional financial planning essential for maintaining dignity and quality of life in later years.

For personalized guidance on Social Security benefits and Medicare coverage, consult SSA.gov and Medicare.gov for the most current information and eligibility requirements.