5 Financial Tips For Seniors
Financial Tip: Keep Financial Awareness in Focus
Throughout our lives, our financial concerns continually change. The days when we were working a summer job to save up for our first car or a college education have turned to years in which we worked at our adult professions, to today when we’re approaching retirement. Now our concerns have turned toward how to maintain our lifestyle and pay for medical expenses on a fixed income for years into the future.
The following are a few money-related tips for seniors to consider for their retirement years.
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Develop a spending plan for your retirement
Having a plan for your money and limiting expenses in retirement is important. Consider new ways to cut costs, such as letting your auto insurer know you no longer drive your car to work. Be sure to put some of your income into savings, especially for short-term goals such as holiday gifts, because that can help you avoid a large, sudden withdrawal from your retirement investments.
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Think twice before accepting an offer to “advance” (lend) you a portion of your future pension, Social Security, or other retirement income
These offers are similar to payday loans and they likely involve costly fees and interest. You can also find yourself taking out similar loans in the future — paying additional fees and interest charges — to make up for new cash shortages as you repay the original loan.
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Beware reverse mortgages
Remember that a reverse mortgage will eventually have to be paid back — with interest. Reverse mortgages allow homeowners age 62 or older to borrow against the equity in their homes without having to make monthly payments as long as they meet the terms of their loan agreement, such as staying current on property taxes. However, the money borrowed plus interest must eventually be repaid, usually when you or your heirs sell the house.
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Think about ways to turn a hobby or another interest into a part-time job
Other possibilities for supplementing your income in retirement include a seasonal job or freelance consulting. But consider if this extra money could affect other aspects of your finances tied to your income, such as a potential increase in your Medicare costs or a possible temporary reduction in your Social Security benefits. Also consider any income tax implications.
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Organize and protect your important documents
Items to keep at home, in a secure fireproof place that’s easy for you to get to, may include your bank and brokerage statements, insurance policies, Social Security and company pension records, and other personal and financial papers you or your family might need on short notice. If caregivers or others regularly visit you, make sure that your checkbooks, credit cards, and other financial records are protected.
Alternatives for Seniors is a print and online directory that specifically caters to the housing and personal care concerns of senior citizens and their families. Call our Senior Specialists at (888) WE-ASSIST (888-932-7747) or visit the Alternatives for Seniors website to begin searching for the perfect home for you or your loved ones. Also, be sure to join our Facebook community and follow us on Twitter and Pinterest.