Category Archives: Financial planning

Boomers Need To Get Their Financial House In Order


Planning for retirement makes life less stressful.

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.

Preparing To Live To Be 100

The longer you live the more money you will have to spend, or conversely, the more money you should start saving now to prepare for living into your 100s. Modern medicine and the fact that many diseases and illnesses are able to be caught and even corrected early means that many of us are living longer, and in many cases, healthier lives.

If you’re hoping to live to be 100, how will you make certain you can afford it? The time is now to look at your finances and prepare for a secure financial life in your Golden Years. Here are some steps you can take to make sure you don’t outlive your money:

  • Take stock of your spending. Scrutinize your spending for the next 30 days. Track where you’re spending and where you might be able to cut back and put that money into a savings account. It may be easier, and paint a more accurate picture, if you analyze three months’ worth of spending and take an average.
  • Talk with your CPA to get a snapshot of the amount of money you may need into retirement. Many individuals believe they will spend less money once they’re retired because they won’t have the expenses for food or commuting and other out of pocket expenses; what they don’t plan for is the money spent on hobbies or travel or leisure, now that you have leisure time. You may also see an increase in your family food budget because you’ll be eating more meals at home than in the past.
  • Save as much money, as often as you can. Check on your investments and, depending on your age, invest either more robustly or conservatively. Your financial adviser is your best point of contact for your investment planning.
  • Take a look at your lifestyle. Are there items you will want to do once you retire that you don’t now? How much will they cost? Are there activities you do now that you won’t once you retire? How much do they cost? If you plan to travel or take up a new hobby you will want to calculate those costs so you can budget for them. You don’t want to look at retirement as “sitting around the house with nothing to do” time you want to enjoy your Golden Years and pursue hobbies and activities you perhaps didn’t have time for while you were working and raising a family.
  • Will you be able to afford to live in your own home? Will you need to downsize or even make arrangements to live in a retirement community? What will that cost? Will it make sense for you to invest in long-term care insurance? Talk with a trusted advisor before you make any decisions on this purchase.
  • Get your paperwork in order. Don’t wait until you need a power of attorney or a healthcare proxy or a will – by the time you need it, it will be too late. Talk with your attorney and your family and get these papers drawn up early so they are in place in the event of a health emergency when you can’t speak for yourself. While it may be a bit morbid, you may want to put your funeral arrangements in writing and even get them planned so that your family won’t have to wonder at what your wishes would have been.
  • Pay off as much of your debt as possible. It’s best to not have to worry about credit card debt or loans with high interest rates, especially when retirement is drawing near and when your income will likely be lower than it was when you were working.

Taking steps to prepare for living to be 100-years-old is best done when you’re younger and in good health!

Getting Your Financial Paperwork In Order

Talking with your aging parents or family members about drafting a medical power of attorney (POA) is likely not a conversation that will come easily to most individuals. Truly, a medical power of attorney is a document that each of us should have, regardless of age or health. This power of attorney is only activated in the event you are unable to make decisions on your own behalf. If you are coherent and in control of your faculties, you are allowed to make your own decisions even if a family member disagrees. It’s important to have these forms prepared and filed prior to dementia or some illness or injury that causes you to be unable to legally sign it.

With a medical power of attorney you are making a decision (while you still can) to spell out your wishes as they pertain to what you want done, and don’t want done, in the event you suffer a medical crisis. The decision you make on your POA can be whether you’d like to be on life support, whether you want to donate organs, what (if any) heroic lifesaving measures you’d like taken. The individual that is granted the POA on your behalf is legally and ethically required to perform in good faith on your behalf.

Bottom line a medical power of attorney is one that is drawn up and signed by a competent adult (the principal), and the person being designated as the POA to make decisions on his or her behalf and then signed and filed with the attorney. The individual named in the POA to act on the behalf of another is called an agent.

In order for the agent to make medical decisions on the behalf of the principal his or her doctor must determine the principal is unable to make decisions on their own. This determination from the physician is in writing and in some states the determination requires the signatures of two physicians to have it deemed valid.

When an individual is admitted to the hospital, whether for routine surgery, as the result of an accident or for other surgical or medical procedures, the POA is part of the hospital admittance paperwork and stays with the patient chart.

While the medical POA grants rights to the agent, he or she cannot make a decision on the type and amount of medical care. When you’re drawing up the form with your attorney you can place limitations in the form that can hinder the decision-making authority an agent may exercise. These forms can be changed and updated at any time. Check with your attorney to see whether the state you reside in requires it to be notarized or prepared by an attorney if changes are being made.

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Long-Term Planning Care Talks Should Start Today

Most individuals hope to be able to age in place. If your parents or other loved ones have that thought as well, there are steps that can be, and should be, taken to make certain that dream can be realized.

It’s a fact of life that we simply do not know what the next day will bring. From suffering a stroke, a trip or fall accident or some other illness or injury, your loved one may go from being independent to being reliant on friends and family or being in the care of physicians. Planning now – today as a matter of fact – to make your home senior-friendly can help you realize the dream of aging in place. Consider too, that an illness or injury could mean you or your elderly loved one could require care for a limited or a long-term commitment, having a conversation today and putting measures in place will relieve much of the stress that arises when the need is imminent.

At some point in almost every person’s life he or she will need personal care above and beyond what a family member may be able to provide. The National Institutes on Health estimate that as many as 70% of all individuals 65-years-old or older will need long-term care assistance.

Here are some items to take into consideration when planning for long-term care, whether it will be in home or in a skilled facility setting:

Where will you want to be cared for and who can provide the care?

  • In-home personal care aide? You can hire a professional to come into the home and care for an aging loved one. These individuals can provide health care and even help around the house with cooking meals and running errands. A personal care aide can help with bathing and other self care issues.
  • Senior day programs are provided to adults in a community setting and offer meals, social interaction and activities and are an ideal setting for individuals that require help during the day. These programs may even offer occupational or physical therapy as well as transportation and are ideal for individuals who are able to be alone at night but need assistance during the day.
  • Senior housing/assisted living settings provide amenities the same as you’d have in your own home but the units also offer housekeeping, access to medical personnel, exercise, activities and help with bathing and other personal care needs.
  • A nursing home is a setting in which 24-hour care is provided. These settings are for individuals unable to care for themselves whether from an illness or injury.
  • Staying in the home is made even more feasible if the home is equipped with a medical alert device and your loved with one with a personal medical alert device. These devices not only offer peace of mind when your loved one is home alone but also provide them with immediate access to emergency medical care if the need arises.

The level of care you or your elderly relative needs will hinge on the circumstances, the level of care a family member needs and the level that other family members feel comfortable providing.

Here are questions that all family members should be involved in when making decisions on long-term care:

  • What level of service will be required?
  • Is there a family member that is willing to take on the role of caregiver?
  • Is there special assistance that will be needed?
  • Is the home senior-friendly? By this we mean, has the bathroom been modified to the needs of a senior (grab bars in the shower, raised toilet seats, etc). Is the kitchen set up so that the senior doesn’t need to climb in order to reach cooking items? Are the rugs non slip? Are there clear pathways to and from the rooms? Are hallways equipped with motion sensor or easy to reach light switches?
  • What does the family doctor recommend for the level of care the senior needs?
  • Are there long-term care or assisted living facilities in the area that have open beds? Remember, if your loved one moves into an assisted living setting, his or her personal medical device can move right along with them and offer an additional layer of care and peace of mind protection.
  • What kind of insurance or other savings are available to pay for the long term care needs?

Taking time now to research options and have open discussions on the needs, wants and desires of the seniors in your life will make it easier for you to make decisions on their behalf (if necessary) when a health need arises. Making life decisions when in the midst of a crisis situation could lead to stress and uncertainty.

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Retirement & Financial Tips for For Baby Boomers

Change is typically front of mind for many when the calendar flips to a new year. If you’re in the Baby Boom generation, chances are you are also in the so-called Sandwich Generation. What is the Sandwich Generation? It’s that crop of Baby Boomers that are raising children, pursuing careers and taking care of aging parents.

If you’re taking over the financial responsibility for your parents you may find strategies they employed that make sense and that you will incorporate. However, you may find that your parents simply didn’t plan carefully enough for the future and with the potential for nursing home or assisted living costs looming, financial conversations need to take place sooner rather than later.

As a 50-something there is no time like the present to implement a financial strategy for yourself and your family. What can you do today? Here are some strategies:

  • Understand how much you have “banked” for Social Security for when you retire. In the past the Social Security administration would mail out statements letting you know what your expected future benefits would be. They are no longer mailing statements but you can go online and see the amount you may collect when you retire. Go to For many people, Social Security will not be enough to live comfortably on and that’s why there is the need to plan for future living expenses as you age.
  • Look at your budget and determine whether you can put additional money away in a savings or retirement account. Even a modest increase in savings can add up in helping your retirement be more fiscally secure. Don’t forget to ask your accountant how much you can deposit into a retirement account to adhere to the IRS guidelines.
  • Talk to a financial planner to see if you are on the right track for retirement. Do you have a true picture of your income and expenses? Do you know how much you need to live comfortably? Once your full time income is gone after you retire, where will you need to make cutbacks in the family budget and are those cutbacks items you can live with? You should know where your retirement income will come from and how much it is and compare that to expected expenses. If you plan to age in place you will also need to factor in home maintenance expenses and potential increases in utilities because you will no longer be out of the house at work.
  • Are your investments working for you? You want to have an investment portfolio that matches your individual style, whether you are an aggressive investor or whether you simply want your money to grow at a steady pace. Understanding your investment style, though will help you determine your financial status once you retire and begin living off of the investment income.
  • Determine whether it is worth it to you and your family to invest in long term care insurance. Have a plan in place for the time when, or if, you or your spouse can no longer live independently. Will you have the funds available to move into an assisted living facility that you prefer or will your finances force you to move into a facility in which you’re not happy?

If you’re in the midst of gathering up your paperwork to meet with the accountant and file your taxes, now is the ideal time to take a good, long look at your finances and make certain you are planning for your future.

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Addressing Legal and Financial Issues With Your Aging Parents


Finance (Photo credit: Tax Credits)

Having a conversation with your aging parents, especially while they are in good health, about any long term legal or financial issues is a topic that needs to be raised with care and consideration. No one wants to think of his or her own mortality, let alone make plans for the family to take on legal and financial responsibility on their behalf. Consider that your parents have long been responsible for their own financial affairs and

in many cases, for yours as you were growing up. The need to address the question of, “What will happen to your financial assets, who will pay your bills, who can access your bank accounts, and what arrangements do you want for end of life care?” need to b

e addressed while your relatives are still healthy and able to make their own decisions.

If either of your parents suffers an accident or a debilitating health condition it will be too late to work on preparing a will, making decisions on health care proxies, finding a power of attorney and getting all of the paperwork finalized and legal. Some of the decisions you and your siblings or other family members will nee

d to address include:

  • Who will make health care decisions in the event one or both of your parents becomes incapacitated?
  • Who will manage their money? Pay the bills? Draw out or deposit money? Sign checks on their behalf?
  • What arrangements have been made for long-term care?
  • Is there a will in place?
  • Is there a power of attorney?

If the family has an attorney, you should consult with him or her. If you don’t have a family attorney you need to find one that is experienced in financial and estate planning, probate and wills and should also know about special needs trusts, tax planning and Medicaid and Social Security nuances.

Trying to make a decision on your parents’ behalf if they are suffering from a stroke, other major health issue or Alzheimer’s can be emotionally charged at best, almost impossible at worst. Having legal documents in place prior to any injury or illness befalling them allows your parents to have a hand in who will be designated to make healthcare and financial decisions on their behalf.

Tips For Effective Money Management For Seniors

Effectively managing your finances following retirement and into your Golden Years brings with it challenges that need to be addressed so that you can continue to live the lifestyle to which you’ve become accustomed. One way to do this is to begin planning for retirement early in your working life and to work within the confines of a budget once you retire. Living within your means allows you to enjoy the perks you had when you were employed while still keeping a comfortable nest egg. Maintaining long-term financial stability requires thoughtful planning and may involve making changes to your daily lifestyle. Remember, financial planning for your retirement and senior years is more about long term goals than short-term.

Here are some money management tips to put into place prior to retirement. If you’re already retired, these are tips that can be implemented even now to help you enhance your financial stability:

  • Clear up your long term debt. Pay off your mortgage and pay down your credit cards. Revolving debt can wreak havoc on your savings. Having to worry about making monthly debt payments can negatively impact your long term financial stability. Additionally, knowing that your debts are paid off, or paid down, will add to your peace of mind.
  • Writing and sticking to a budget. To remain financially viable into your retirement you will need to live within a budget. Take time and make certain you include all of your expenses when making your budget. Include items such as health insurance, auto insurance and long-term care payments in addition to the income you’re bringing in.
  • Take care of your health. Illness can negatively impact not only your overall health but your ability to remain within your budget. Eating healthy meals, remaining active and having regular medical check-ups will go a long way in helping you enjoy your retirement years.
  • Stay involved. Volunteer, take a class at a local community college, visit neighbors and friends. Remaining involved with friends and continued learning leads to better mental acuity and could even ward off health related mental deterioration.
  • Do you need to downsize? If you’re still living in the home in which you raised your children, it may be time to consider downsizing to a smaller, more efficient home. Whether you move into a small home or an assisted living or retirement facility, taking the time to address trip and fall hazards and upgrading the bathroom and other rooms in the house to be senior friendly make the home safer as you age. Individuals that may be living alone or dealing with balance issues or other health concerns may want to consider equipping the home with a medical alert device as a way to have immediate access to health care in the event of an emergency.

Prior planning will help you enjoy your retirement years with grace and ease.


retirement (Photo credit: 401(K) 2013)

Three Steps To Relieve Retirement Anxiety

There is never a wrong time to begin tracking your income and spending, but truly the more thoroughly you understand your money habits and gain control of your budget, the more quickly you will be able to take charge of your future. When retirement is just around the corner, you may feel you’ve lost valuable time to gain control of your finances, but there is still time.

Here are three strategies to help you set up a workable budget and stick to it:

  1. Save more money. This may seem a simple solution, but in many cases the simpler the solution, the easier it is to implement. Once you’ve charted your income and expenses, you can look at what’s left over and make a decision to bank 10 to 20% (or more) of your income. If you find that 10% is too much, start smaller and work your way up. Being successful at socking away 3% of your income weekly will help you build toward a higher percentage going into your savings on a regular basis. Once you discover that you can live without that additional 3% or more you can move your savings amount up to the ultimate goal you’ve chosen.
  2. Spend less money. Saying you’re going to “save money and cut expenses” is a vague generalization and won’t offer a measurable goal. Set a specific goal of, “I’d like to spend $10 a week less on take-out food,” or “We’re not going to use a credit card for purchases of less than $100.” Those goals are measurable and achievable. Unsubscribing to department store emails and updates may help you save money because you won’t be tempted to give into an impulse purchase. Also, before you make a purchase over a certain dollar amount, take time to ponder that purchase. Studies show that individuals that don’t give into an impulse purchase, but who instead take a few days or a week to determine whether they truly need an item will spend close to 25% less annually than those who purchase on impulse. Consider the impact on your long-term financial goals before making a purchase of a large ticket item.
  3. Pay down your debt. Paying down credit card balances, especially as you near retirement age, makes incredible financial sense. Paying down your debt also allows you the opportunity to put more money into your bank account. In addition to freeing up your money, paying off debt can also lower your stress simply because they won’t be looming over your retirement years. You may need to put the brakes on some of the activities you currently enjoy such as dinners out with friends, splurge purchases, etc. Look for free or low cost entertainment options, invite friends to a potluck at your home, take time to consider whether you truly need that large ticket item. If you know, for example, that you have set a goal to pay cash for all purchases of $50 or less it may make you pause to consider whether you need to make the purchase at all. Putting an item on a credit card rarely requires thought and is usually not thought of again… until the bill comes due.

Having sound financial practices in place prior to your retirement will help you more fully enjoy your golden years.


Retirement (Photo credit: 401(K) 2013)

Planning for the Future with Your Loved One

As your loved one progresses in age, it is inevitable that questions about your future together arise. Broaching the subject of how your care recipient would like to live out their remaining days if they can no longer offer input, is not easy. Most caregivers attempt to have this difficult conversation more than once, often finding that their loved one is quick to change the subject.

The list of what ifs are not meant to cause your loved one emotional distress. They should help to facilitate a plan so that their wishes are carried through and you’re not left guessing what they might have wanted.

Before discussing your options with your loved one, you may consider seeking a legal professional to address the possible situations and aid in the planning. Visiting a lawyer on your own will allow you to ask whatever questions you want without feeling uncomfortable or worrying about how your concerns affect your loved one. By being blunt, expressing your fears and getting all the necessary information, you will be better able to discuss the available options.

Approaching the Subject

Keep your conversations short, informative and seemingly impromptu. Discussing how the plan will affect you takes some of the pressure off of your loved one. Present your plan by prefacing it with “In case I have any problems,” and ending it with “What do you think?” Or simply tell your loved one, “I need your help with something.” By asking for their opinion your loved one will see that their input matters in the decision making process, and they may offer some good advice as well.

After you get what you have to say off your chest ask your loved one what they want to do. If they are quick to avoid the subject some gentle prodding may help.
Wrangling your Support Group

Caregivers often find that their world is somewhat closed off to interactions with others. If you are not in a support group, you may not be able to find friends who have been down this road. You may not be able to seek advice from your current friends to learn from their experiences, however, there are plenty of resources and articles available on the subject.

Getting your siblings involved can be both a blessing and a curse. Caregiving duties are almost never distributed evenly and the brunt of the work typically falls on one individual. Discussing end of life topics with your family may result in a splattering of opinions when figuring out how to best approach the issue. Before bringing up the issue with your parent, make sure all of your siblings are on the same page. The discussion will go a lot more smoothly and you can avoid misunderstandings.

Getting Finances in Order

Private banks tend to offer more programs when it comes to financial resources, since they pride themselves on developing close relationships with depositors. Talking to your banker regarding escrow accounts, eldercare and investment options will provide you with valuable information.

Now May be a Good Time to Get your Plans in Order as Well

Lawyers often encourage their clients to get their funeral arrangements in order while thinking about their parent’s future. It has been proven that caregivers often neglect their own health while taking care of their elderly loved ones. It is always a good idea to take yourself and your health.

Focus your efforts on the positive aspects of planning. If plans are not squared away in advance, the court may have to be called in and the family may find they have very little say in the decision making process, while your elderly loved one may find that they have none.