Keeping up with finances can be difficult for everyone, but for seniors, who are generally not receiving additional income and have to deal with healthcare and senior living related expenses, it can be more challenging. It is important to create a financial strategy that can help keep you or your loved one on track and stretch retirement income as much as possible.
Not only are older individuals receiving less additional income and dealing with some increased expenses, they also are more likely to be a victim to some type of financial scam or fraud as many scammers know that seniors are generally more financially secure than other people. Learning how to preserve and protect your money as you age is necessary for living a secure life in your later years.
There are a number of ways that senior citizens can improve their financial situation. From simply getting help from a financial expert to creating a budget plan for yourself are great ways to get started.
Get Expert Help
Enlisting the help of a financial adviser or planner can help you or your family avoid financial issues later in life. Financial advisers can help answer questions like how quickly to take money from savings and investment strategies for later years. Spokesman for the Federal Deposit Insurance Corporation Spokesman Ron Jauregui said about finding a financial adviser that “before you follow the advice of a supposed ‘expert’ who claims to have special credentials for advising seniors, research what that title may or may not mean and the adviser's background.” You can learn more about professional designations and tips for choosing a financial adviser on the FDIC’s website.
Keeping track of all your spending habits is a great way to create a financial path forward and learn where you or a loved one needs to be more cautious with spending. To do it simply take inventory of how much is being spent in each month and year and adjust to these findings. Luckily, with the emergence of new technology, the process is much easier than it was a few decades ago. Nowadays, there are phone apps that can help you keep an eye on your spending.
Create A Spending Plan
Setting a spending goal for yourself or a loved one is a great way to limit expenses and preserve money. Evaluating your budget and thinking up new ways to cut costs like contacting an auto insurer about not driving to work is good ways to limit spending. It is also good to continue to put retirement income away in savings especially for things like holiday gifts in order to avoid sudden withdrawals from your investments.
Join the Do Not Call Registry
Many people receive unsolicited offers from random companies through the phone which can result in unwanted overspending that can affect your budget. However, registering your phone number with the national Do Not Call Registry is an easy way to avoid these calls and will help to avoid scams.
Keep an Eye Out for Discounts
Community Affairs Specialist for the FDIC Mary Bass says that “comparison is key” when looking for deals. “For consumers over a certain age, some financial institutions may offer breaks on the cost of bank products and services. Banks and other businesses may negotiate with respect to fees or other account terms, so ask questions and show them what is being offered by competitors.” Using this method of comparing and contrasting deals from banks, and other entities for that matter, is a great way to cut a good deal for yourself, maybe even getting something better than advertised.
Organize and Protect Important Documents
Keeping your financial documents in order is important to to keeping records safe later in life. Some items that may be good to keep at home include bank statements, insurance policies, social security and pension records, and other personal or financial documents that you or your family may need on hand. Similarly, a safety deposit box is a good option for storing documents and valuables that you don’t need 24/7 access to. Don’t forget to seal documents in airtight, waterproof bags to prevent unnecessary damage.
Avoid Scams and Fraud
Financial fraud can happen to anyone, but, according to the FDIC, older adults are more at risk. This is because scam artists know that many seniors have accumulated money throughout the years, making them a better target. However, there a signs that point toward fraud, including:
- An unexpected email or call requesting for information like a bank account number
- Someone expressing unusual interest in finances
- A investment offer that guarantees a return or seems to good to be true
Throughout a lifetime is easy to accumulate multiple bank and investment accounts as well as credit cards. It may be a good idea to look at all these accounts and close some of the ones that you no longer use, doing this can make your accounts easier to manage and keep track of.
As you can see, there are many ways to make sure that your finances are preserved and protected properly as you age. Doing simple things like keeping track of spending, creating a budget plan and organize your documents are great ways to keep your financial life in order. It also may be a good idea to enlist the help of a financial adviser or expert to give you tips and to help you with some of the more complicated aspects of finances.
Keeping track of your loved ones finances, health, and well being can be a daunting task. However, here at Landmark Senior Living we can help to lighten the load. Not only does our staff provide residents with the medical care that they require, they are also involved in keeping your loved one with a stacked social calendar. Our social activities and events ensure that our residents stay happy during their time at Landmark. If you are interested in learning more about Landmark, please reach out to our admissions staff today.