With so many people facing financial and health struggles due to the pandemic, charitable giving and philanthropy are more popular than ever. There are many ways to support a cause – donating time by volunteering, giving items directly to a charity or contributing money. How one gives is a personal choice, but for those who choose to donate financial support, they may find their contributions go further with the use of a donor-advised fund (DAF).

What is a donor-advised fund (DAF)?

A DAF is a charitable-giving tool that allows a client to make an irrevocable contribution to the fund, for which they receive an immediate tax deduction. Over time, they can direct grant requests to IRS-approved, public charities. The minimum initial contribution typically varies by firm. At Edward Jones, the Charitable Gift Fund has a $10,000 minimum.

Who should consider a DAF for charitable giving?

A DAF can be a powerful tool for maximizing a client’s charitable impact in certain situations – for example, if they want to give to charity and:

• They want their charitable giving to be tax-deductible, but they don’t give enough each year to itemize your deductions. If they plan to make consistent charitable contributions, they may consider combining several years’ worth of planned giving into a single DAF contribution. This may enable them to itemize their taxes and realize a larger deduction in the current tax year. And they can request a grant be made from the DAF to the charities of their choice over time. Remember, they get the tax deduction in the year they contribute to the DAF and not when the money is granted from the DAF to the charity.
• They own investments that have significantly increased in value. Contributing appreciated securities directly to a charity allows them to avoid paying taxes on the capital gains. This means the charity receives more of the proceeds than if they were to sell the security and then gift the after-tax proceeds. They can also take an income tax deduction for this type of contribution. However, many charities are not set up to handle this type of gift, so transferring the appreciated securities to a DAF and then granting to the charities of their choice is a good way to use this strategy.

  Table: Giving $100,000 of stock with $90,000 of long-term capital gains to charity

  	Given to DAF	Sold for cash
  Capital Gains Tax	0	$18,000
  Sold for Charity	$100,000	$82,000

• They have experienced an unusually high-income year. If they sold a business, exercised stock options, executed a Roth conversion or otherwise received extra income and have been considering philanthropy, it may be a good time to give. Typically, in high-income years, their marginal tax rate is also higher. This means they’ll generally get a bigger tax benefit from charitable donations made this year versus subsequent, lower-income years. Clumping future donations into this year and making grants over time from a DAF may increase their benefits as well as their impact on the charitable organizations they choose to support.

How your clients can incorporate a DAF as part of their financial strategy

In addition to the potential tax benefits listed above, a DAF has the following benefits, depending on how a client chooses to use it:

• The opportunity to grow their charitable gifts over time, tax-free. A DAF allows them to invest their contributions, providing an opportunity for the money to grow. Additionally, this growth is not taxable to them, the DAF or the charity that receives the grant. When determining the investment allocation in their DAF, consider the appropriate amount of investment risk for the DAF and how long they expect the money to last.
• Streamline tax reporting. For those who itemize their taxes, keeping records throughout the year can be a burdensome process. If a client plans to give to multiple charities throughout the year, using a DAF may streamline their record keeping. Donating first to a DAF and then granting to multiple charities allows for a single donation receipt.
• Share the values of charitable giving. During a client’s lifetime, they may wish to pass along their giving activities to their children or loved ones. DAFs can allow for joint or supervised charitable giving. Giving money to a DAF removes it from their estate and may help alleviate intergenerational conflict around subsequent charitable grants.
• Leave a legacy. A DAF can be a beneficiary of a will, trust, annuity, insurance contract, retirement plan or investment account. The DAF also allows a client to name a successor older than 18, such as a child or spouse who can continue in their spirit of giving. Alternatively, they can direct the DAF to continue making grants to charities of their choice for a period of time. By donating amounts over the estate tax exclusion (2021 federal estate tax exclusion: $11.7 million per person) to the DAF, they may be able to avoid the estate tax and receive an income tax deduction.
• Provide an alternative to a family foundation. While family foundations offer more control over investment options, administration and granting, DAFs can offer many of the same benefits at a lower cost to set up and maintain.
• Evaluate a charity’s fiscal responsibility over time. Rather than giving a charity a single lump-sum donation, a client may want to give smaller amounts over time while evaluating the charity’s ability to fulfill its stated objectives. By contributing the full amount to the DAF in a single year, they realize any potential tax benefits upfront. Their stable grants could help the charity plan its budget.
• Remain anonymous to the charities they support. While some people may wish to maintain a close relationship with each charity they support, others may find the resulting volume of solicitations undesirable. A DAF can allow them to remain anonymous to the charity if they wish.
• In memoriam giving. A DAF can allow a client to honor a loved one’s legacy in two ways. They can designate a grant from their existing DAF to be made in memory of the loved one, or a new DAF can be set up in their memory for friends and family to make contributions.
• Ensure the charities the client chooses to support are qualified by the IRS. A third-party administrator is responsible for day-to-day operations of the DAF. As part of their services, they ensure the charity is approved by the IRS before fulfilling the grant request to make certain the client’s donations are eligible for an income tax deduction.

Tradeoffs of using a DAF

DAFs have several key benefits, but there are important tradeoffs to consider:

• Contribution is irrevocable. Once a client contributes to their DAF, they cannot access that money for anything other than charitable giving. Grants can only be made to IRS-approved charities.
• Investment risk. While the amount of investment risk the client chooses for their DAF contributions depends on the portfolio selected, every portfolio will carry some degree of investment risk. It’s important to explain this risk to ensure the benefits of the DAF outweigh the risks.
• Lower levels of control. While the DAF can be cost effective and offers streamlined administration, it does restrict the available range of investments, the donor’s ability to hire individuals to administer the program and the ability to grant money to individuals or private charities. If a client wants more control, they may want to consider other giving strategies.
• Investment management and other fees. While a DAF is a low-cost alternative to a private foundation, it does still require fees. Therefore, it is generally not recommended to use a DAF to make a cash contribution and grant all the money to a single charity in a single year. It would be more cost effective to give the money directly to the charity
• No contributions from qualified charitable distributions (QCDs). After age 72, individuals must take required minimum distributions (RMDs) from some retirement accounts, most of which are taxable. However, clients who do not need this income can forgo this tax by designating the RMD as a QCD and directing the retirement account to distribute the money directly to a charity. Current IRS rules prohibit QCDs from being placed in a DAF.
• Giving back. Paying it forward. Making a difference. However one defines it, many investors share the goal of supporting causes with a purpose – now more than ever. At Edward Jones, being able to offer our own DAF, the Edward Jones Charitable Gift Fund, is the smart answer for many of our clients. And, it’s one more way we stay committed to our purpose of partnering with clients for positive impact to improve their lives, and together, we better our communities and society.

Important information:
This information is for educational and illustrative purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives, risk tolerance and financial situation.
Edward Jones, its employees and financial advisors cannot provide tax or legal advice. Investors should consult an attorney or qualified tax advisor regarding their situation..

Graduation season. Whether high school or college, this life milestone is filled with promise for a bright and prosperous future. However, with 69% of college students graduating with an average debt of $29,900, and 14% of their parents carrying an average of $37,200 in federal parent PLUS loans, for many families the promise is clouded by debt that can put both the graduate and their parents, who are approaching retirement, at significant financial risk.

The Rising Cost of College

From 2012 to 2021, student loan debt grew 70% to $1.7 billion, according to Federal Reserve estimates. At the same time, the average cost of attending a private college grew 17%. Despite these increases, 10 years after we launched the annual Edward Jones 529 survey,* nearly two-thirds of Americans still don’t know the value of tax-advantaged 529 education savings plans. In fact, only one-fifth of parents in the U.S. report that they have saved or are planning to save for theirs or their children’s education using a 529 plan.

Confusion and Misinformation

As 529 plans have evolved over the past 10 years, more myths and misunderstandings have surfaced about their value. For example, according to our survey, 14% of respondents thought they’d be penalized on unused funds if their child wound up not going to college. Seven percent of survey respondents believed they would lose all they saved if their child qualified for a full-ride scholarship. Other barriers to saving for their children’s education included paying off their own student loans, the fear of being penalized on unused funds if a child doesn’t go to college, and the feeling that they don’t make enough money to open a 529 account.

Clearly, there is a disconnect between increasing student debt, rising college tuition and awareness of strategies available to save for education.

Our Responsibility

Despite the perceived barriers, saving for education remains a top three financial priority for many Americans. However, 67% of survey respondents said they were not aware of the features and potential tax benefits of 529 plans and 65% didn’t know about the possible uses of 529 funds beyond paying for college tuition.

Graduation season is the perfect time to talk with clients about education goals for their children, grandchildren, or themselves. We know that education is among the biggest contributors to earnings potential. It can lift families and communities out of poverty, and it is a cornerstone for financial security. I don’t know a client that doesn’t want this kind of security for themselves, their children, or grandchildren.

A practical tool to help teach clients about financing education is the Edward Jones Financial Fitness Paying for College module. It provides a solid overview and includes calculators to help clients understand expenses to consider and establish an education savings goal.

Your commitment to raising awareness about the advantages and flexibility of 529 plans will help raise up communities as families across the country no longer feel like saving for- and pursuing- education is an out-of-reach goal.

In 2010, 63 percent of Americans had life insurance, according to LIMRA. By last year, that number had dropped to just 54 percent. LIMRA’s research also revealed that 30 million American families lack life insurance, and another 30 million more are underinsured. That is a tremendous gap that leaves far too many families at risk.

And the risk is real: 44 percent of families say they would face financial hardship within six months if the primary wage earner died. For 28 percent of families, the hardship would begin within a single month. If you think about that in the context of the more than 400,000 families that have lost a loved one from COVID-19 in the U.S., the importance of having life insurance in place becomes even clearer.

As a community of financial advisors, we have the opportunity to help close this gap and help families feel more secure about their financial futures. Fortunately, there’s a resurgence in the level of interest in life insurance these days. I am moved by LIMRA’s research, which found that six in 10 Americans have a heightened awareness of the importance of life insurance due to COVID, and 7 in 10 say the pandemic has been a wake-up call to re-evaluate their long-term financial goals. Going a bit further, nearly 30 percent of Americans say they’re more likely to buy life insurance due to COVID-19, and nearly 70 percent of people who already have coverage say they’re likely to buy more.

Clearly, the appetite for either adding or increasing life insurance is there for many Americans. This is something we should be discussing with clients, especially those who have experienced a significant life change, such as having a baby or buying a house. But even those without such an event may be thinking that they need to evaluate their coverage options.

We know that people, families and yes, our clients, are going to need clear guidance to help them select the policies that are right for them and incorporated into a complete and personalized wealth strategy for each person. LIMRA, for example, has found that only about a third of Americans understand the basic concepts about life insurance – but those who work with a financial advisor are more likely to have a higher understanding. They also found that more than half of all consumers without life insurance say they haven’t bought it because they don’t know how much they need or what type to buy.

There’s clearly a strong role for each of us as a community of financial advisors to play here. Interest in life insurance is high, as the pandemic has caused it to be top of mind for many, but it’s also clear that people are uncertain about how to ensure that they’re getting the right type and amount of life insurance for their individual situations.

Make a point to ask about life insurance in your upcoming conversations with clients. Be proactive – it may not be a subject your clients will broach on their own. Be prepared to provide guidance and coaching and answer questions in a way that your clients will understand. By doing so, you’ll not only be helping your clients build a more secure financial future, but you’ll be giving them a tremendous gift: confidence and personal wellbeing. It’s a great way to make a positive impact in their lives.

In March, we celebrate Women’s History Month, a tradition that began in 1987 to celebrate women’s contributions to history, culture and society.

As we recognize Women’s History Month in 2021, however, we are reminded that the year that has passed since last year’s celebration has been a difficult one for many women. The COVID-19 pandemic has had a disproportionate impact on women. In fact, it’s so profound that some have described it as a “female recession.”

According to the Labor Department, women are down 5.4 million jobs since February 2020, while men are down 4.4 million. In December alone, women lost 196,000 jobs – while men actually gained 16,000 jobs.

Our own research shows that the indicators go even deeper than that. A survey we did in partnership with Age Wave showed that while 56 percent of men are confident about their retirement, only 41 percent of women say the same.

Obviously, as financial advisors, we want to help. And there are ways we can help women who have been negatively impacted by the events of the pandemic to get their finances back on track. First, it’s important to understand where they’re coming from.

For example, research from Age Wave shows that while most women are confident in financial tasks such as paying bills and budgeting, only about half say they’re confident in managing investments. Part of a financial professional’s job, then, is to find ways to encourage those who aren’t as confident to take their first steps in investing.

It’s also important to recognize that younger generations are, generally speaking, quite financially savvy. A 2020 study from Boston Consulting Group found that 70% of millennial women take the lead in all financial decisions, compared to just 40% of female baby boomers.

With this information in mind, we as financial advisors need to create experiences that meet women where they are. We need to adjust our approach based on whether they’re financially savvy, very new to finance and investing, or somewhere in between.

Different life situations may impact their needs as well. Whether they are choosing to live independently, becoming a business owner, caring for family members or furthering their education later in life, each client will have her own set of goals that we need to identify and help them build toward.

Most importantly, we must take a human-centered approach to serve our clients in a comprehensive way, applying equal parts knowledge and empathy to help them weigh complex tradeoffs as we co-create a strategy that will help them achieve what’s most important to them.

The past year has been tough for many women, but we have an opportunity to help them still reach their goals. I look forward to the progress we’ll all make between now and next year’s Women’s History Month.

It’s the holiday season – and in this year of the pandemic, the spirt of giving is needed more than ever. How can you help your clients express their own generosity in a way that adds purpose to their lives?

As financial advisors, we talk to our clients about the technical aspects of giving, like the possible benefits of qualified charitable distributions, but should we be going deeper? We do need to be aware that our clients may already be especially determined to make charitable gifts this year, given the pandemic-driven stresses that have led so many people to rely on charitable groups for some type of aid.

But once the holidays are over, what then? The feelings that drive clients to make charitable gifts don’t simply vanish on January 1. It’s important for us to go beyond the idea of charitable giving as simply writing checks to charitable groups, as valuable as that act is. We need to connect the spirt of giving with the concept of a purpose-driven life.

About 89 percent of Americans feel that there should be more ways for retirees to use their talents and knowledge for the benefit of their communities and society at-large, while 31 percent of new retirees say they have struggled to find a sense of purpose in retirement, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study.

Since purpose is so clearly an issue with retirees are there ways we can introduce this concept into our holistic approach of providing financial advice and guidance? We can ask our clients if they’ve considered what a “useful and rewarding” life will look like for them in retirement. When they consider their social interactions now, are there gaps they will need to fill in during their retirement years? What social activities do they see themselves enjoying in retirement, whether its travel, hobbies, volunteering, etc.?

By really listening to those we serve, and understanding their concerns, interests and motivations, we can help them live their lives with purpose. And we can relate to their desire to contribute to their communities by showing how we are doing the same, in many ways.

For example, this spring, my wife and I revised our giving plan in response to current needs of our family, friends and the community. We took stock in the ways we can give of our time, affirmation, influence, connections and financial to be responsive to the challenges of the triple pandemic.

Our role is about helping our clients connect to their purpose and prepare for what is ahead.

Today’s retirees face a new challenge and opportunity: how to use their newfound time and affluence. They don’t just want to keep busy; they want to spend their time in useful and rewarding ways.

Do you have loved ones who have been affected by Alzheimer’s or other forms of dementia?  I do – and I’m committed to being part of the effort to find a cure. But in the meantime, I hope that, as financial advisors, we are doing whatever we can to support those of our clients who give so much of themselves to help their loved ones dealing with this terrible illness or any other serious health issue.

Clients who serve as caregivers, often for aging family members, typically face emotional and physical stress. Simultaneously, caregiving can lead to financial stress, too, as caregivers often are forced to scale back their careers or leave them altogether or go into debt to pay for long-term care or other expenses that may not be covered.

Nonetheless, as financial advisors and trusted guides, we can help families plan for, respond to and bounce back from adversity. In short, we can nurture and support their resiliency.

Still, the challenge is significant. Consider this: In 2019, caregivers of individuals with Alzheimer’s or other dementias contributed more than 18 billion hours of unpaid care, worth about $244 billion in services, according to the Alzheimer’s Association, which also reports that about two-thirds of caregivers are women and one-third of dementia caregivers are daughters.

This caregiver gender gap is a matter of great concern, because many women who are now caring for aging parents also have taken time out from the workforce earlier to care for young children. And women who leave work to care for an elderly family member lose wages and the ability to contribute to 401(k)s or similar plans. Plus, they also lose an average of $131,000 in lifetime Social Security benefits, according to the Brookings Institution.

Of course, while this “big picture” is daunting, there’s great variation in individuals’ lives. Consequently, we must take a holistic look at our clients’ health, family and financial situations, being aware that their choice of becoming a caregiver is highly personal. Still, we can provide valuable help.

Many of our usual points of advice are applicable to caregivers, such as contributing to an employer-sponsored retirement plan, maintaining an emergency fund and keeping a lid on debts. These pieces of guidance will certainly depend on a caregiver’s employment status and financial resources, so we need to be highly sensitive to these factors as we offer suggestions.

And by taking a comprehensive approach, we can help caregivers think differently about their situation. For instance, it’s possible they could get some compensation for their caregiving duties. Many local governments pay non-spouse caregivers who act as personal attendants, although the rules vary greatly by state and county.

We may also need to connect clients to tax or legal professionals to establish necessary arrangements, such as a financial power of attorney. Just the existence of this document may help clients avoid getting their personal finances entangled with those of the individual for whom they’re caring.

In addition to our knowledge, we need to demonstrate what should be our greatest asset – empathy. There’s tremendous pressure associated with caring for a loved one with an injury or a disease such as Alzheimer’s, and we need to understand what our clients are going through and show our tangible support.  At Edward Jones, we’ve partnered with the Alzheimer’s Association in various ways – walking, educating and advocating – to help our clients, colleagues and communities as we work to end this terrible disease.

Furthermore, we help sponsor the Alzheimer’s Association 24/7 Helpline, which provides reliable information and support to anyone who needs assistance. The Helpline is staffed by knowledgeable Alzheimer’s Association professionals and serves people with Alzheimer’s and other dementias, caregivers, families and the public.

November is National Family Caregivers Month, dedicated to supporting caregivers as they care for others. This year’s theme, “Caregiving Around the Clock,” describes the essence of the total commitment caregivers are making on behalf of their loved ones. The physical, emotional and financial toll caregivers face can be overwhelming. As financial advisors, and as an industry, we owe it to the families we serve to listen with an empathic ear while helping them plan for their futures.

When I was a financial advisor, I worked with a young couple for about three years. They had their whole lives ahead of them and were filled with hopes and dreams. But tragedy struck – the husband was killed in an automobile accident. If I had done nothing to prepare this couple for this type of scenario, I could not have even faced the grieving widow. Fortunately, I had strongly encouraged them, as young as they were, to purchase life insurance, and they followed through. I was able to present the widow with a check that allowed her to move on, as difficult as it was at the time.

Many of us in our industry probably have similar stories to share. And that’s why we need to keep stressing that insurance is an essential element in helping our clients achieve their goals.

September is Life Insurance Awareness Month. There’s certainly a need to bring more awareness of the importance of insurance to our clients. Just 59 percent of Americans even have life insurance, according to LIMRA – and half of those with insurance are underinsured. Several factors are responsible for this inadequate coverage, one of which is that nine million households just have group life insurance, which according to LIMRA, leaves an average coverage gap of $225,000.

Why the lack of insurance? Why the shortage? You’ve probably heard all the excuses: “I can’t afford insurance.” “I’ll get around to it later.” “I’m healthy, so why do I need it?” And if they have a group policy: “I’m sure I have enough coverage – after all, why would my employer offer this to me if it wasn’t sufficient”?

It may take some effort on our part to overcome these objections – to point out to clients that they can afford insurance, that life insurance is essential to leaving a legacy, and that the right amount of coverage can’t be determined by a pre-set formula but should be based on their individual situation – their age, income, number of children, retirement plans and all the other factors that you already know are important.

If we’re going to provide our clients with advice based on their goals, we need to talk about life insurance – because one goal virtually everyone shares is that of taking care of their families. In fact, 71% of retires say they would be willing to offer financial support to their family even if it could jeopardize their own financial futures, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study — and life insurance enables individuals to provide that support without endangering their own future at all.

It’s now been 50 years since Edward Jones began offering life insurance. During that time, how many lives have we impacted – how many stories have we written – like the one I described above? I really don’t know – but I do know that I’m proud of every one of them. As financial advisors, all of us need to partner with our clients to co-develop a long-term strategy designed to help them achieve their objectives – such as protecting their families. And we always need to be able to say something simple, yet powerful: “I will be there for you when you need me.”

So, during Life Insurance Awareness Month, think about contacting those of your clients who you think may be lacking the proper coverage. It could just end up being one of the most important calls you make.

As financial advisors, we serve as trusted guides on our clients’ journey through life. By following a goals-based approach, we can learn what’s really important to investors as we help them prioritize their objectives and create workable strategies for achieving them. A key part of this process – probably the key part – is listening to clients and understanding what they’re thinking. And sometimes we might be surprised by what we find out.

In fact, I learned a lot about individuals’ feelings and knowledge about higher education, and how to save for it, from a new survey of U.S investors by Edward Jones and Morning Consult.

Here are just a couple of the key findings:

• 36% of Americans are reconsidering their investment in education amid COVID-19.
• 80% of those currently saving for an in-person, four-year college or university cited concerns that the quality of education may suffer if universities move to online learning.

These results lead to some questions: Will the pandemic experience of online learning lead to a partial, though permanent, movement toward this platform? If so, how will that affect the cost of higher education?

We don’t know the answers yet. But although the American higher education system may eventually be altered somewhat, it seems highly like that the post-pandemic landscape will still include a robust on-campus, in-person experience. And that being the case, we will still need to help our clients save for the high costs of higher education.

Of course, there are many ways to help save and invest for college, but, as you well know, one of the most effective utilized methods is the 529 plan. However, less than half of adults (45%) accurately recognize a 529 plan as an education savings tool, according to the survey we did with Morning Consult, which also found the following:

• 60% of respondents were unaware that 529 plans can be used to pay for purposes other than college (such as K-12 expenses, trade schools and apprenticeships).
• Nearly a third of respondents said they are using, or will use, a personal savings account as part of their education savings strategy, compared to just 21% who named 529 plans as their primary savings vehicle.
• 40% of adults don’t feel that they are saving enough to reach their goal for future education expenses.
  Clearly, there’s plenty of space for financial advisors to talk to investors about education savings in general and 529 plans in particular, especially in comparison to personal savings accounts.

Nonetheless, we need to show sensitivity to what’s happening in the world today. Specifically, the economic/employment stress caused by the pandemic will certainly affect individuals’ financial priorities, at least in the near term. Consequently, we should not be surprised if some investors are currently reluctant to commit to regular contributions to an 529 education savings plan.

This awareness of difficult economic circumstances should inform all our interactions with clients and prospects about education funding, 529 plans – and, in fact, all other investment-related goals. But we shouldn’t be scared away from bringing up these topics. Someday, the pandemic will be over – and when that day arrives, we want our clients to remember that we were always there for them.

Learn more about the findings of the Edward Jones and Morning Consult Education Savings Study.

More than three-fourths of pre-retirees haven’t even calculated how much money they’ll need in retirement, according to the Four Pillars of the New Retirement study we conducted with Age Wave.

That’s a staggering statistic, especially when today, Aug. 14, we observe National Financial Awareness Day.

The study also found that 68% of pre-retirees say they have no idea what their health and long-term care costs may be in retirement, while another 56% of retirees wish they had budgeted more for unexpected expenses in retirement.

There’s clearly a knowledge gap out there – and it’s our duty as members of the financial services industry to address it.

Raising investors’ financial awareness is an ongoing – and essential – service. The greater our clients’ understanding of their financial picture, the greater our ability to communicate and connect with them, and the better we’ll be able to completely serve their present and future needs.

The more we understand what’s important to our clients, the better we’ll be at co-developing both a short- and a long-term strategy to help them accomplish their goals.

Our clients look to us for knowledge – and many want their financial advisor to help connect their financial well-being with their sense of purpose.

In fact, the Four Pillars study found that people interested in working with a financial professional say that the ideal role of a financial advisor is to act as a financial guide –someone who understands their goals and helps to achieve them.

With millennials looking for purpose in their careers – 68% wanting to be known for making a positive difference in the world – I can think of no better profession than financial advising to help the next generation.

And what we know from our work, is the younger people are when they gain financial acumen, the better off they’ll be later in life.

That’s why the Edward Jones Financial Fitness program is so important. Together with our partners at SIFMA Foundation and EverFi, we help students and young adults learn how to make smart financial choices that will benefit them throughout their lifetimes.

And we do this in three ways – 1) through online learning with high school students that measures the impact of their financial knowledge and confidence gains, 2) community-based programs where our financial advisors serve as mentors and role models for students and teachers, and 3) online resources for our clients, colleagues and their families.

National Financial Awareness Day is just that – one day. But working together with national and local partners, schools, teachers, students and young adults has taught us that we can build financial resilience for the next generation.

If you have clients suffering from Alzheimer’s disease, or if you have a loved one battling this illness, you’re already familiar with the emotional, psychological and financial costs associated with this dreaded disease. Nonetheless, you might be interested in some stark facts emerging from The Four Pillars of the New Retirement, a thought leadership study that Edward Jones developed with Age Wave, a research firm specializing in aging, retirement and longevity.

• Alzheimer’s disease is the most feared health condition of later life, ranking higher than COVID-19, cancer, heart attack, and stroke.
• In 2020, approximately 5.8 million people 65 and older suffer from Alzheimer’s. This number is expected to double by 2040.
• 72 percent of retirees say that one of their biggest fears is becoming a burden on their families. Yet 73 percent also say they would rely on children or stepchildren if they needed long-term care.
• Almost 70% of those who plan to retire in the next 10 years say they have no idea what their healthcare and long-term care costs will be in retirement.
• The pandemic has raised awareness of the need to discuss Alzheimer’s and other terminal conditions. In fact, COVID-19 has prompted 27 million Americans to have end-of-life discussions for the first time.

Clearly, these are sobering statistics – and they especially resonate for those of us in the financial services industry. As we take a holistic approach to helping our clients, we need to ask the right questions of our clients, such as these: Are you prepared for the increasing costs of healthcare as you age? Have you taken the steps to maintain your financial independence in case you need some type of long-term care? Have you created the estate plans necessary to leave the type of legacy you desire? And most importantly, have you discussed those plans with your family?

At Edward Jones, we are doing our part to help combat Alzheimer’s. As part of our efforts, I’ll be representing our firm at the annual Alzheimer’s Association International Conference (AAIC), held July 27 -31. This conference, originally scheduled for Amsterdam, has been moved to a virtual platform, but it will still bring together international Alzheimer’s and dementia researchers, clinicians and caregivers online to discuss the latest studies, theories and discoveries that will help bring the world closer to breakthroughs in treatment and cure.

Expanding our commitment

Edward Jones’ commitment to fighting Alzheimer’s is also expanding. We have renewed our strategic alliance with the Alzheimer’s Association, committing $25 million over the next five years, matching what already was raised by Edward Jones, our associates and communities since launching the alliance in 2016. The total investment, over the course of 10 years, is the largest commitment ever pledged by a corporate partner to the Alzheimer’s Association. And our financial advisors and associates have also contributed countless volunteer hours to various Alzheimer’s-related activities.

Join us for our virtual broadcast

Edward Jones Managing Partner Penny Pennington, Alzheimer’s Association President and CEO Harry Johns, and I will highlight accomplishments and discuss future goals of this alliance during a virtual broadcast at 3 p.m. CT on July 30. All are welcome to view the broadcast by going to www.edwardjones.com/alz.

There’s no cure yet for Alzheimer’s, and it’s going to be a tough fight for the foreseeable future. But working together, we can make a difference.