The ‘golden years’ used to mean a time in life after working, retirement.
For many this time is coming later than it might have for their parents and grandparents.
Most seniors have in their minds a dream life they hope to achieve as they age.
Perhaps they want to take trips, fish every day, play golf, or live near their grandkids.
Unfortunately, many of our senior loved ones’ dreams won’t become a reality without sound financial planning.
Retirement accounts for many seniors have taken hits from the ups and downs of the economy.
Others didn’t have a chance to save and had expected that social security and now-vanished pensions would fund their dreams.
Combine that with ever-increasing cost of living and cost of healthcare for current and future needs.
Financial Planning for Your Senior’s Successful Aging
Being sure your senior loved one has enough of a nest egg set aside to make their dreams a reality will require careful planning.
If they haven’t done that planning already, the best time to start is now.
It is important to have a vision for what your senior’s future should be so that you can help them plan to achieve it.
Will they want to travel, remodel their home, live on a golf course or just meet their living or healthcare needs?
Here are some tips for your senior’s finances:
- Hire a financial planner to help decide how best to set up a budget for the future. Find a fee-only planner versus one who makes a commission from your investments to ensure your senior’s interests are their priority.
- Pay off debt. Go into retirement with zero consumer debt if possible.
- Make a budget. Expect to spend 4% of savings the first year you retire, though that percentage will vary senior to senior.
- Carefully consider a reverse mortgage and understand all its ramifications with your senior before they enter into one; it works for some but not all.
- Hold off taking Social Security as long as possible to maximize the income it provides.
- Keep investing in retirement, maintain savings.
- Consider whether part time employment or self-employment in retirement needs to be part of the plans to achieve long term dreams.
Your senior can live their dreams if they are sufficiently prepared to make them happen.
Here are some extra posts that you might like covering topics of money and finances for aging seniors: