It’s National Economic Education Month, and there’s no better time to start planning for better senior money management. Join us in reviewing these expert tips for securing the financial freedom to live life on your own terms. Please note, this blog post is for educational purposes only and is not meant as official financial advice. If you have any questions about your finances please contact a qualified financial professional.
Tip 1: Work with a Financial Advisor on Money Management.
Saving for retirement is no easy feat — our financial obligations grow with us, from education and mortgages to caring for aging family members and increased healthcare. Planning is key when it comes to making sure your retirement income is where you want it to be. Start by finding a financial advisor who’s a fiduciary. This type of advisor is legally obligated to act in your best interest (so their recommendations aren’t based on kickbacks). Working with a fiduciary takes a lot of the work off your shoulders in maximizing your savings to fit your individual goals for retirement.
Tip 2: Downsize for Your Golden Years.
One way to save a substantial amount each year during retirement is to downsize from a single-family home into a senior living community. Consider the benefits of joining a community like Garden Plaza of Florissant, where residents no longer have to worry about cooking, cleaning or home care, because it’s all provided. This type of retirement living is more convenient, with many services and amenities provided, and it also offers more peace of mind, with assisted living and other levels of care available on-site, if ever needed. While the idea of such a transition may seem intimidating at first, residents of senior living communities often remark that they wish they would have made the move sooner! Learn more about how to pay for senior living here.
Tip 3: Control Your Budget and Spending.
One of the most important money management tips for seniors is to make sure you understand your budget and spending before making any major changes. Use the three-month rule as your guide. Track your spending habits for three months to see where your income is going, so you can make smart money management choices on where to adjust your budget. By the same rationale, always have enough savings for three months in case of emergencies, if additional income is not available. Set up automatic bill payments to ensure your bills are paid on time every month. By taking the time now to think about your budget and spending, you’ll spend less time worrying about it during your retirement. And remember, this is your time — you’ve earned it!
Tip 4: Plan Your Retirement Income.
You’ll likely need more than Social Security income for your retirement income, and the longer you wait to use it, the more your benefits increase (8% annually until the age of 70). You can still contribute to a Roth IRA at this age, and the IRS allows individuals ages 50 or older to make extra contributions to their retirement accounts, known as catch up contributions, so be sure to ask your financial advisor about how best to invest during retirement.
If you’re worried about a lack of savings, good news — there are ways to enjoy your golden years without affecting your budget and spending. Credit cards offer rewards from cash back on purchases to travel miles, so take advantage of these perks for your retirement plans. There are many public benefits available through the National Council on Aging, including transportation and medical assistance. And look for senior citizen discounts at your favorite restaurants, grocery stores, cell phone plans and travel services to help maintain your retirement income. You’ll be surprised at how many are available! Homeowners ages 62 and older can also consider a reverse mortgage to set up a monthly payment or line of credit. Again, always be sure to ask your financial advisor what is the best investment plan for you.
Tip 5: Focus on Your Healthcare.
Healthcare costs are a major concern for senior money management, since frequency of care tends to increase (and the benefits of employer insurance) tend to decrease as we age. Be proactive about your healthcare by taking care of yourself with aerobic activity and strength building. And don’t delay making a plan for future care needs, including naming a power of attorney if you’re unable to make decisions on your own. The last thing you want is to have to make important financial decisions when you’re unwell.
Explore Senior Money Management with Garden Plaza
Whether you’re planning for retirement or researching options for a loved one, the experts at Garden Plaza can help you through the process. See our tips on how to save for retirement. To learn more about the financial benefits of moving to Garden Plaza of Florissant, contact us today.
This article is for educational purposes only and does not serve as official financial advice. If you have any questions about finances please contact a qualified financial professional.