5 Financial Planning Strategies Older Adults Should Consider

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Important Financial Planning Strategies for the Elderly in Douglas County, CO

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 a limited income 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 adviser. The adviser 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 is not the only task seniors may require assistance with. Aging adults who need help around the house, transportation to medical appointments and social events, and assistance with exercise can benefit from having an in-home caregiver. With the help of Home Care Assistance Douglas County, seniors can enjoy greater independence and receive regular mental and social stimulation when relying on a trusted professional who is expertly trained in various aspects of senior care.

2. Maintain a Balanced Portfolio

Your loved one’s portfolio should be 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 Tax Efficiently

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has funds in an IRA, Roth IRA, or another type of taxable account, he or she may need to pay taxes when the funds are withdrawn. The tax amount will likely depend on when and how the money is withdrawn.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

While financial advisers 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 Home Care Assistance, a leading provider of live-in and respite care. Douglas County seniors can maintain their independence while living at home with the help of our reliable respite 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. Douglas County senior 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. To create a customized in-home care plan for your aging parent, call Home Care Assistance at 720-580-5378 today.


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