Boomers, who often assume the role of caregiver, need to get their financial house in order. If you are that Boomer, it is up to you to take steps today to make certain your finances aren’t a burden for your loved ones.
No one has a crystal ball to tell us how long we will live, and because of that it’s crucial to plan for the future and for a time when you can comfortably retire. Doing this means you need to consider your income, expenses and what you want to do in your Golden Years: Do you want to travel? Buy a new home? Simply kick back and enjoy your family home and putter around the garden? Regardless of what your retirement dream is, financial planning is something that needs to be discussed. In fact, planning for retirement should begin when you first become employed, but not many of us in our 20s think of retirement. Regardless of your age, there is no time like the present to plan for retirement if you haven’t already.
If you’re in a caregiving role and are tasked with paying the bills of your aging loved ones or are wondering where the money is going to come from in the event they suffer a health emergency that lands them in a hospital or assisted living facility, you understand the stress that finances can cause. How can you, make certain that if your children are put into the role of caregiver for you that your money will last and that they won’t have that burden?
Here are some ways to do just that and to make your money last:
- Consider downsizing your home. If you raised your children in a large home and now it’s just the “two of you” why not downsize? If you have a smaller home, or move into an apartment you can realize a windfall in savings on utilities, property taxes, insurance and mortgage payments. If you realize a profit from the sale of your home talk with a financial advisor on the best way to invest it to help your money grow.
- Downsize your debts. Pay off your highest interest credit cards first then start paying down the rest of your debts. Financial planners say individuals should strive to be debt-free by age 70.
- If you’re both retired, do you still need two vehicles? Consider trading one, or both, in on a reliable model that you can share.
- When you’re eligible for Medicare, take advantage of the benefit. When you turn age 65 you are eligible to participate in Medicare – a program that covers up to 80 percent of the cost of doctor’s visits and medical expenses.
- Take advantage of senior discounts. If your favorite store offers a discount for seniors, sign up! Ask whether the restaurant you’re frequenting or the hotel you’re staying in offers a senior discount; many establishments may offer one if you ask. Ask your auto insurance provider about discounts it may provide as well.
- It may sound morbid, but plan your funeral. This is not a burden – either emotional or financial – that you want to place upon your children. You can make virtually all of your arrangements with a funeral home and then let your children know what your wishes are and where the arrangements have been made.
- Talk with your financial advisor and see if your money is working for you. If it isn’t ask him how you can diversify in a safe manner that won’t put you at too high a risk for loss.
When you’re making your plans for finances in retirement, make sure you and your spouse or significant other sit down and have a heart-to-heart about the ways in which you will spend your retirement. It can be a stressful time when both partners, who may have been accustomed to a particular work routine, are now faced with seemingly endless hours of “nothing to do” and “too much togetherness.” Talk about, and review those plans as you move toward retirement to ensure you are meeting you needs and goals.