As people age, they typically start looking at retirement with a degree of caution in their eyes. So how do you save enough money for retirement in style? The following tips may help you:
1. Budget carefully. Once you retire income usually declines and while some expenses also go down, you may need to budget for the first time in your life. Track monthly living expenses and any occasional expenses like vacations and holidays to make sure you are not spending your principle too fast.
2. Don’t be too generous. Remember to watch your personal budget if deciding to help grown children with their own money issues. You are not going to do them any favors if you end up needing help! Paying for financial counseling may make more sense than a hand out.
3. Plan to talk. Make sure you and your partner come to an agreement on what you want to do when you retire and plan your retirement together. This is a conversation that is absolutely necessary if the two of you are going to be on the same page.
4. Put fraud safeguards in place. Older adults are at a greater risk for financial fraud. To help avoid this, ask your bank about alerting someone (not you) if large withdrawals are made. Some debit cards ca be programmed to only work in certain locations.
5. Prepare for cognitive decline. When it comes to managing money, signs of cognitive decline tend to show up in one’s 60s and 70s. It can become harder to manage bills, calculate tips and make change. Have someone already chosen and prepared to take over your finances if the time comes.
6. Get help before you need it. Your financial person will need to know where your accounts are, possibly passwords, and a copy of the POA for finances before they need to act. When you are sick is no time to try to remember when a CD matures. You should talk (or write) plans and wishes, and even an overview of your financial goals as you age.
7. Consider launching a business. Starting a business in midlife or later can add to your income in retirement if you are worried. A second career or “night gig” can bring a measure of professional and creative satisfaction even after you leave your day job.
Do you need help figuring out how to finance your long term care needs/ Give us a call today–ACM Care