While educators debate the risks and opportunities of generative AI as a learning tool, some education technology companies are using it to increase revenue and lower costs.
Among educators, enthusiasm for generative AI’s potential benefits have been overshadowed by fears of its misuse. Some school systems have banned the use
of generative AI chatbots altogether amid concerns of plagiarism and misinformation. Others who view the use of the technology as inevitable and unavoidable have encouraged their students to gain fluency.
This confusion around the ultimate role of generative AI in education has cast a pall over education technology (EdTech) companies and the education sector broadly amid heightened fears over subscriber growth. However, Morgan Stanley Research analysts think the market is skewing too negative in the debate over generative AI, while missing the technology’s potential ability to both increase efficiency at all levels of learning and, over the long term, improve quality and access to education—both positives for the EdTech sector.
“Generative AI could actually enhance the overall learning experience, by cutting down on administrative work and maximizing human interaction, as well as by reskilling or upskilling workers whose jobs have been affected by the technology,” says Brenda Duverce, an analyst on the Morgan Stanley Sustainability Research team. “These and other efficiencies could bring $200 billion in value to the global education sector by 2025, which could ultimately translate to higher revenue and lower costs for the best-positioned EdTech companies.”
Generative AI’s core capabilities—creating and disseminating information—make it a logical fit in the education space. Primarily, it can enhance productivity and allow more time for higher-value activities: For instance, teachers could use a chatbot tool to review and correct essays and grade exams, check for accuracy and plagiarism or to prepare coursework, freeing them up to interact with students. Teachers could also use generative AI to tailor curricula and performance assessments to individual students’ needs for a more personalized learning experience. Virtual assistants, meanwhile, could help reduce labor costs by automating some administrative tasks like enrollment, onboarding, class scheduling and payments.
Over time, generative AI could parse the huge amounts of data captured by K-12, higher ed and companies providing corporate learning and development, helping these institutions make more informed decisions about program development, recruitment and retention and to fine-tune what they offer.
“Among education companies, the ones best positioned to generate returns have already begun rolling out some of these AI-powered products and features to customers.” says Duverce. “Those that develop unique offerings and differentiate themselves with innovation should perform well over the long term.”
Current generative AI technologies will likely affect a quarter of the occupations that exist today, rising to 44% within three years, according to Morgan Stanley Research estimates. But fears that substantial job losses and permanent displacement of workers will ensue may prove unfounded in the long term.
Education providers could find themselves in a unique position to meet the growing need for retraining workers displaced by the technology—including by helping them learn skills needed to use or develop generative AI.
Analysts estimate a $16 billion market opportunity within the next three years from reskilling workers displaced by generative AI, assuming that around 6% of affected workers will need reskilling.
“History tells us major changes in technological paradigms are often followed by periods of disruption, typified by economic growth and net job creation—an idea at odds with current concerns about job destruction in the wake of generative AI,” says Duverce.
For full insights on generative AI’s impact on the global education sector, ask your Morgan Stanley representative or Financial Advisor for the full report, “More Than Meets the Eye: Sizing the GenAI Opportunity in Education,” (Nov. 20, 2023). Morgan Stanley clients can access the report directly here.
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Managing the financial aspects of long-term care for elderly loved ones can be a complex and challenging task for family caregivers. From planning for in-home support to exploring options like assisted living or nursing home care, the financial burden often adds to the already significant emotional and physical responsibilities they face. This article offers an overview of financial strategies and insurance options, providing valuable insights to help family caregivers navigate the complexities of long-term care planning and ensure their loved ones receive the care they need without undue financial strain.Understanding Long-Term Care NeedsLong-term care involves a variety of services designed to support seniors who need help with daily activities and medical care over an extended period. Whether its assistance with tasks like bathing, dressing, or managing medications, long-term care ensures that seniors are safe, comfortable, and well-cared for. The type of care can vary, from in-home support, where assistance is provided in a familiar environment, to more structured settings like assisted living facilities and nursing homes that offer continuous care and supervision. A study by Genworth Financial found that the average annual cost of a private room in a nursing home in 2023 was $108,600. Knowing the available options can help families make the best decisions for their senior loved ones.Cost Factors of Long-Term CareThe cost of long-term care is a significant consideration when planning for the future. Several factors affect these costs, including the level of care needed, where the services are provided, and how long the care will be required. For instance, in-home care may be more affordable than nursing home care but can still add up if ongoing daily assistance is necessary. Assisted living facilities offer different levels of support and amenities, while nursing homes typically provide the highest level of care at a higher cost. Nationally, costs can range from around $4,500 per month for assisted living to over $9,000 per month for nursing home care, depending on location and the level of care. Understanding these factors is key to ensuring that senior loved ones receive the best care within the familys financial means.Assessing Your Loved Ones Financial SituationFor family caregivers, understanding the financial situation of an elderly loved one is a critical step in planning for long-term care. Its essential to evaluate current assets such as savings, pensions, and Social Security income to determine how these resources align with future care needs. This process involves reviewing total assets, including any investments and retirement funds, and comparing them to the monthly income your loved one receives, such as Social Security benefits or pension payments. Recognizing potential gaps between current income and anticipated care expenses is key to making informed decisions about long-term care options and exploring any additional financial support that may be required.Tracking and Organizing Financial DocumentsMaintaining accurate and organized financial records is crucial for caregivers managing long-term care planning. Its important to collect all relevant documents, such as medical bills, insurance policies, and bank statements, and ensure they are easily accessible. Establishing an organized system, either digitally or through physical filing, can help caregivers keep track of essential items like wills, power of attorney forms, and healthcare directives. A survey by AARP found that 84% of caregivers reported that managing their loved ones finances was stressful. This ensures that financial records are in order and available when needed, making it easier to navigate care decisions and avoid any confusion down the line. Properly organizing these documents is a practical step in preparing for the evolving needs of elderly loved ones.Building a Long-Term Financial StrategyCreating a solid financial plan for long-term care is essential to ensure elderly loved ones receive the care they need. With rising healthcare costs and uncertain future expenses, its important to build a strategy that addresses both current and future needs. This includes budgeting for ongoing care, preparing for unexpected costs, and seeking professional financial advice. Here are key considerations for developing a long-term care strategy.Creating a BudgetFamily caregivers face the challenge of creating a realistic budget to cover the many costs associated with caring for an elderly loved one. This involves accounting for essential expenses such as healthcare, housing, and daily living costs like food and transportation. A study by the National Alliance for Caregiving found that 36% of caregivers reported moderate to high levels of financial strain due to caregiving responsibilities. Additionally, planning for potential future costs, including inflation and evolving care needs, is important. By developing a flexible budget, caregivers can better manage unexpected expenses, such as medical emergencies or necessary equipment, ensuring their loved ones receive continuous support without straining financial resources.Establishing an Emergency FundAn emergency fund is a crucial financial safety net for caregivers, providing a buffer for unforeseen medical situations or urgent care needs. Ideally, this fund should cover at least three to six months worth of expenses, but caregivers can start small and build over time. Setting aside even a small portion of monthly income can make a significant difference in handling unexpected costs without disrupting overall financial planning. Having this financial reserve helps caregivers feel more secure in managing the unpredictable nature of caregiving.Working with a Financial AdvisorCollaborating with a financial advisor or elder law attorney can be a valuable step in long-term financial planning. These professionals offer guidance on more complex financial matters such as tax benefits, estate planning, and managing long-term care insurance. They can also help caregivers navigate legal issues like power of attorney and healthcare directives. Engaging with a financial expert ensures that caregivers are well-prepared to manage both present and future financial responsibilities for their loved ones, reducing stress and providing peace of mind. Exploring Insurance Options for Long-Term CareWhen planning for long-term care, understanding the available insurance options is crucial for family caregivers. Different programs and insurance plans can help cover the costs of care, but its important to know what each offers and the requirements for eligibility. Below are key options that can assist in managing long-term care expenses for your elderly loved ones:Long-Term Care Insurance:This insurance helps cover costs for in-home care, assisted living, and nursing homes. Its best for those wanting to protect savings, and purchasing early helps keep premiums lower. Eligibility is based on factors like age and health, making early consideration important.Medicare and Medicaid: Whats Covered:Medicare only covers short-term care, not long-term services like nursing homes or ongoing in-home care. Medicaid covers long-term care but has strict income and asset requirements. Understanding both programs helps caregivers plan effectively for care costs.Veteran Benefits:Veterans may qualify for benefits such as Aid and Attendance to assist with long-term care expenses. Exploring these options can ease financial strain for veterans and their families, so knowing eligibility and applying is crucial.Government Programs and AssistanceWhen caring for elderly loved ones, government programs can provide crucial financial support for long-term care. Understanding how these programs work and how to access them can help ease the financial burden on family caregivers. Social Security BenefitsSocial Security can be a vital source of income for elderly loved ones, helping to cover some long-term care costs. While it wont cover all expenses, it can assist with daily living costs or contribute to care services. However, its important to be aware of how Social Security benefits might impact Medicaid eligibility, as receiving benefits could affect qualification for certain programs.Medicaid PlanningMedicaid is one of the most important resources for covering long-term care, especially for those who have limited financial means. Qualifying for Medicaid can be complex, requiring careful planning to meet income and asset requirements. Early Medicaid planning is essential, as it allows you to make the most of the available benefits and ensure that your loved one qualifies when the time comes.Legal Considerations and Planning AheadPlanning ahead for legal matters is crucial to ensure elderly loved ones are protected and their wishes are respected. Setting up the right legal documents early can provide clarity and make decision-making easier as care needs evolve. According to a study by the National Academy of Sciences, Engineering, and Medicine, only 23% of adults have a living will or other advance directive. Here are key legal considerations for family caregivers to keep in mind:Power of Attorney and Healthcare Directives: A durable power of attorney allows a trusted individual to make financial and healthcare decisions on behalf of an elderly loved one if they become unable to do so. Healthcare directives, like a living will, ensure that medical preferences are respected. Having these documents in place helps avoid confusion and ensures decisions align with your loved ones wishes.Wills, Trusts, and Estate Planning: Proper estate planning protects assets and ensures financial wishes are followed. Wills and trusts can help minimize long-term care costs, preserve wealth, and avoid probate. Early planning is essential to safeguard an elderly loved ones financial future and provide peace of mind for the entire family.Starting Financial Conversations: Talking about finances can be challenging, but its an important step in planning for the future. Approach these conversations with respect and transparency, allowing your elderly loved one to express their concerns and preferences. Open communication ensures that financial decisions reflect their wishes and contribute to better care planning.Planning for the UnexpectedWhen caring for elderly loved ones, family caregivers must be prepared for sudden changes in care needs. A decline in health, unexpected hospitalizations, or the need for more intensive care can create financial challenges. A survey by the Alzheimers Association found that 39% of caregivers reported significant financial strain due to unexpected expenses related to caregiving. Planning ahead by building an emergency fund and understanding what insurance covers can help ease the burden. Regularly reviewing and adjusting the financial plan ensures caregivers are ready to adapt to these changes without causing unnecessary stress.At the same time, its essential for caregivers to maintain their own financial well-being. Balancing the needs of a loved one with personal financial goals is crucial to avoiding long-term strain. Setting boundaries on financial contributions, continuing to save for the future, and seeking professional financial advice can help caregivers manage these responsibilities while protecting their own financial health. Taking care of their finances ensures caregivers can provide support without compromising their own stability.In summary, effective financial planning is key to ensuring that elderly loved ones receive the care they need while reducing the stress on family caregivers. By exploring insurance options, setting a budget, preparing for unexpected changes in care, and addressing legal matters, caregivers can create a strong financial foundation. Starting early and seeking professional guidance helps avoid financial surprises and ensures that both the caregiver and their loved one are better prepared for the future, providing peace of mind and the ability to focus on what truly mattersquality care.
As our loved one's age, it becomes increasingly important to monitor their well-being in various aspects of life, including their finances. Its not uncommon for seniors to struggle with financial management. For seniors experiencing cognitive decline or physical limitations, staying on top of finances can become a real challenge.Recognizing the signs that your senior loved one may need help with their finances is crucial for their financial stability and overall well-being. In this article, well explore some red flags that could indicate your loved one is having difficulty managing their finances and discuss some practical ways to offer support. Spot the SignsWhile everyones financial situation is unique, looking out for signs that your loved one is struggling can help you determine when intervention may be needed. Spotting unpaid bills, unopened mail, or overdue notices at your loved ones house may indicate that theyre having difficulty keeping track of their financial obligations.You may also notice unusual spending patterns or strange purchases that are out of character for your loved one. If your loved one is expressing concerns about budgeting or affording their basic needs, this could be another sign theyre having trouble managing their finances effectively.Consider Senior Living OptionsProblems with financial management may indicate memory problems or other age-related issues. For example, AgingCare recommends evaluating your loved ones health and functional abilities when you visit, looking for signs that they may need assisted living care.If you think your loved one needs care 24/7, start looking around online for nursing homes in your area. The earlier you start looking, the more time youll have to compare facility pricing, payment options, reviews, and amenities. For example, Frasier offers a variety of care options, from independent living to skilled nursing care, to meet the needs of seniors with varying care needs.Start a Conversation About MoneyWhen you notice signs that your loved one may be having financial trouble, its time to broach the subject. Conversations about money can be uncomfortable but do not delay, especially if your loved one is showing signs of cognitive decline. As early as possible, start asking questions to get a clearer picture of your loved ones finances. For example, ask where they keep their financial documents, how much debt they owe, who serves as their financial advisors, and what planning theyve done for the long term.Seek Guidance from a Financial Advisor If you dont feel comfortable offering financial advice to your loved one or are unsure how to best move forward with their financial situation, dont hesitate to speak to a professional. A certified financial advisor (CFA) will create a financial plan that aligns with your loved ones immediate and long-term financial goals. A financial advisor can also help your loved one avoid financial scams and exploitation.Consider looking for a financial advisor who specializes in senior finances, as these professionals will better understand planning for living on a fixed income, budgeting for long-term care, and investing in retirement accounts.Set Up Automated SystemsThanks to innovations in financial technology, managing money can be largely automated. Set up automated systems so your loved one has fewer financial matters to keep track of. For example, Clever Girl Finance explains that you can automate bill payments and contributions to savings and investment accounts. Start by signing your loved one up for automatic debits from creditors and service providers. For providers that dont offer this option, set up bill payments with your loved ones bank.Supporting a senior with money management requires a great deal of patience, compassion, and open communication. Remember that each situation is unique, and the level of support required by your loved one may vary from help paying monthly bills to long-term care in a skilled nursing facility. By keeping an eye out for potential financial struggles and acting promptly when you notice a need for support, you can ensure your loved one maintains a high quality of life.
If youve felt the sting of economic changes recently, its safe to say youre not alone. Whether your budget has been hit at the gas pump, in the grocery store, or on rent and utilities, we are all feeling the pressure to spend wisely and be risk averse with our investments. In contrast to younger generations who will likely bounce back from such economic fluctuations, our seniors are experiencing more urgency to protect their existing finances. The continuing impact of the economy on seniors in 2023 will depend on various factors, including the evolving state of the economy, government policies, and individual circumstances. Here are a few risks to be aware of and ways to protect your aging loved ones: Retirement savings: Many seniors rely on retirement savings, such as 401(k) plans and individual retirement accounts (IRAs), to support themselves in retirement. If the economy experiences a downturn, these savings could be negatively impacted, potentially leading to reduced retirement income for seniors. Finding a trusted financial advisor who can help protect investments and assets from risk is an excellent way to stay protected from significant retirement losses. Social Security benefits: Social Security is a vital source of income for many seniors. The Social Security Administration adjusts benefits annually based on changes in the cost of living, which is tied to the economy. If the economy experiences inflation or deflation, Social Security benefits could be impacted. Financial resources for seniors, such as Elderlife Financial Services, is a great way for seniors to stay educated on the best way to utilize assets such as Social Security benefits. Healthcare costs: Healthcare costs are a significant concern for many seniors, and the state of the economy can impact these costs. Rising healthcare costs could make it more difficult for seniors to afford medical care and prescription drugs. Many seniors seek guidance from prominent resources such as AARP, a nonprofit organization for seniors 50+, to learn more about how their medications will be impacted by economic changes and the best solutions to cut down on medical costs. Housing: Many seniors own their homes, and the value of those homes can be impacted by the state of the economy. A downturn in the housing market could make it more difficult for seniors to sell their homes if they need to downsize or move into a retirement community. Senior living communities, such as Harmony Senior Services, often partner with local realtors to offer seniors much needed insight on housing options. Overall, the economy can have a significant impact on seniors, and it's important for families to research solutions proactively through local resources such as senior living homes, retirement communities, financial planners, and realtors so all of the necessary information is ready when changes come.
Keith Philippi, CFPSenior Vice President,Financial Advisor,Morgan StanleyWhether youre building a business, planning for retirement or setting your bucket-list goals, you need a Financial Advisor on your side.I will take the time to learn whats most important to you. Ill then work with you to create a comprehensive wealth strategy. From there, I can suggest realistic financial solutions to help you meet your goals.As your Financial Advisor, Ill l walk with you through the various stages of life. If your financial plans change, or the market shifts, Ill help adjust your accounts. My aim: to keep you on course toward your most important life goals.The ProcessIntroduction & Discovery MeetingThis is where we get to know one another. You'll learn about our approach and capabilities and we'll learn about your unique family, assets, liabilities and goals to help formulate the strategies that are designed for you.In-Depth Analysis and DesignIn this stage, we'll use the vast resources of Morgan Stanley to analyze any investments and plans currently in place and to custom design our recommendations tailored specifically to you, taking into consideration taxable impact, acceptable risk levels and objectives.Plan Presentation & DeploymentHere, we present the comprehensive strategies that have been designed to complement one another in light of your overall financial picture. A roadmap of next steps is laid out in a meaningful and understandable way.Ongoing Monitoring & AssessmentRound the clock monitoring of assets as well as coordinated communication with your other trusted advisors, such as your Estate Attorney and CPA,to ensure that as markets adjust and life happens, your plan is kept up to date. Ongoing reviews in person, via zoom or phone will occur on a regular basis.Services IncludeAlternative InvestmentsFootnoteLong-term Care InsuranceFootnoteWealth ManagementFootnote401(k) RolloversTrust ServicesFootnoteRetirement PlanningFootnoteWealth PlanningFootnoteStructured ProductsFootnoteTrust AccountsFootnoteBusiness PlanningFootnote
