As you grow older, it may become difficult to manage your finances and maintain a lifestyle as your income is now fixed. And your money needs to last for the rest of your life. You may need to decide between bank loans, mortgages, investments, medical expenditures and other finances. Here are some tips to ensure you have cash until the end.
Steer clear of frauds
Most people may not be able to detect when they are being manipulated by scam artists. Senior citizens are more vulnerable to being manipulated usually due to lack of awareness about scams, different types of scams and modus operandi of scams. Fraudsters know that senior citizens often have savings and other assets. Frauds against elderly may be committed by family members, friends or caretakers.
Before lending a large amount of money or making a transaction, contact relevant authorities in your state first. Cross-check with others when an investment opportunity seems too good. Be cautious of anyone expressing interest in your finances or when the receiving party wants to remain anonymous. Scammers have a way of getting information through via email phishing, calls or word-of mouth. When receiving an offer, consult your financial adviser first. Avoid opening joint accounts. Protect your personal information. Keep an eye on your bills and bank statements.
Look for discounts, sales or deals
You want to make sure your money lasts as long as you do. When living on a fixed income, you have to limit your expenditures. Therefore, sign up for updates on discount offers or deals. Find out about the financial institutions that are offering discounts on products and services for elders. Compare prices with other institutions as you might find more economical deals elsewhere.
Manage your credit cards
Monitor your credit cards and close all those that you don’t need anymore. It will spare you the stress of having to manage several accounts. For your pensions, savings or other funds that you are receiving, use direct deposits and low-cost savings accounts that are more economical and have more features.
Banks and companies may provide you alternatives for electronic payments and online transfers, which can save you time of having to wait in lines or making unnecessary trips. This would also help you keep track of payment deadlines and avoid interruptions and penalties.
Protect important documents
There are several documents that you may need on short notice. Keep your financial documents inside a plastic covering and in a home safe or bank deposit box. Seal your documents in waterproof plastic bags.
Plan for your future needs
Having your financial matters in order is part and parcel of having your legal affairs in order. This encompasses both financial, health and estate planning. If you are alone with no immediate family who can step in to deal with financial decisions should you become unable due to illness or advanced cognitive decline, you may want to consider employing a professional fiduciary to handle your money matters. You should also be planning for all contingencies, which you can do with an estate plan. Estate plans usually include a trust document that spells out who your Power of Attorney for financial matters and Power of Attorney for health matters are should you become incapacitated. And who will be the trustee of your estate upon your death.
If you or an aging loved one are considering home care in Irvine, CA or the surrounding Orange County areas, please call us at 949-535-2211. We provide senior care services in Newport Beach, Costa Mesa, Huntington Beach, Irvine, Laguna Woods, Laguna Beach, Mission Viejo and surrounding areas of Orange County California. Contact us today to learn more.
