5 Important Financial Planning Tips for Elderly People

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financial planning strategies for seniors arlington va

After retiring, many seniors want to spend time with their loved ones, travel the world, and explore new hobbies. However, not all older adults are prepared for retirement. A 2014 Bankrate study found that an estimated 31 percent of seniors don’t retire with adequate savings. Aging adults who want to maintain a high quality of life on limited incomes should consider the following strategies. 

1. Revisit the Budget Annually

Every year, your senior loved one should discuss his or her budget with a financial advisor. The advisor can go over investments and offer advice on adjustments that should be made. It’s a good idea for your parent to look at the plans for the upcoming year and work these into the budget. For example, if your loved one is planning to go on a cruise, he or she should incorporate this activity into the budget. 

Planning their finances isn’t the only task seniors may require assistance with. Seniors can face a variety of challenges as they age, many of which can be mitigated with the help of professional in-home caregivers who provide high-quality elder care. Trust Assisting Hands Home Care to help your elderly loved one age in place safely and comfortably.

2. Maintain a Balanced Portfolio

Your loved one’s portfolio should contain a mix of long-term stocks and short-term bonds. Putting too much money in only one type of investment instrument could mean your loved one won’t have the funds he or she needs later in life. 

3. Learn How to Withdraw Funds in a Tax-Efficient Way

If your loved one has funds in an IRA, Roth IRA, or another type of taxable account, he or she may need to pay taxes when the funds are withdrawn. The tax amount will likely depend on when and how the money is withdrawn. Talking to a financial advisor can help your loved one withdraw funds in the most tax-efficient manner.

While financial advisors can help seniors with financial planning, they don’t offer assistance with everyday activities. If your aging loved one needs occasional help with bathing, grooming, cooking, or other basic household tasks, or if you need time to attend to important personal matters, reach out to Assisting Hands Home Care, a leading provider services of home care. Arlington seniors can maintain their independence while living at home with the help of our reliable home caregivers.

4. Purchase Enough Insurance

In the absence of a valid insurance policy, a tragic accident could derail your loved one’s retirement plans. Your parent should plan and be prepared for incidents such as untimely death, short- or long-term disability, the rising cost of health insurance, and chronic or acute illnesses. Obtaining adequate health, disability, and life insurance can protect your loved one’s assets during an unfavorable event. 

5. Set Limits on Giving Money to Others

Grandchildren or children who need financial help may turn to your loved one for assistance. While it’s generous to want to give, your loved one needs to know his or her financial limits when helping others. Setting a limit allows your parent to save enough money to lead a comfortable life. 

Older adults who want to enjoy a high quality of life can benefit from professional in-home care. Arlington in-home care professionals can be a wonderful boon to seniors. Whether they require around-the-clock supervision or just need assistance with exercise and household tasks a few days a week, seniors can enjoy a higher quality of life with the help of trusted in-home caregivers. Trust your loved one’s care to the professionals at Assisting Hands Home Care. To create a customized home care plan for your loved one, call (703) 997-4334 today.