We all know that money isn’t everything, but the truth is that it plays a highly important role in just about every aspect of our lives. Making sound financial decisions is important at any age, but as we enter our senior years, it becomes more important than ever.
“The vast majority of us will neither have the ability nor want to continue working after a certain age,” says Addie Ricci, Executive Director at Bridges® by EPOCH at Norwalk, located in Norwalk, CT. “Having your finances in order in advance of your exit from the job force can be the key to a confident retirement and more peaceful senior years.”
Putting your finances in order allows you to better see how your money will work for you down the road, she says, and will also help your family and loved ones if and when there is a time you no longer can make sound financial decisions for yourself.
“Unfortunately, seniors are more susceptible to making poor financial decisions due to complications from an illness, a chronic disease or simple aging,” says Addie. “It’s important for seniors of any age to take necessary steps to ensure that their finances are working as hard as possible so they and their family members are protected legally, emotionally and financially for the future.”
Set Your Personal Goals
As a senior, your finances play a huge role in your overall well-being and lifestyle. It’s a good idea to take a look at your priorities and realities to see how your saving and spending habits should adapt to be the most beneficial for your interests. By managing your finances properly, it will be easier for you to achieve the goals, lifestyle and legacy that you want.
The first step in managing your finances should be sitting down and taking stock of your situation. Are you happy with your current lifestyle? What are your goals for the next year? Next five years? What do you hope to accomplish, and what (if anything) would you like to leave your heirs? Be honest with yourself and create a list of goals that are important to you. It’s all right if these end up changing down the road – the important thing is to have a place to start from.
Think Realistically About the Future
Once you’ve set your personal goals, it’s time to look at your current situation and think about what possibilities may come to pass in the future. Having strategies in place based on your circumstances and goals is essential for managing your finances. Here are some things to consider as you’re looking to the future:
- What could your potential life span be? Is it possible you could outlive your money? What strategies should be put in place to help lessen that risk?
- What form of income will be available to you once you leave the workforce? Investments such as 401(K)s, stocks and other forms of savings will give you some form of cash flow, along with any government benefits you may be eligible for. How can you put that income to work for you in the smartest possible way?
- What will your healthcare needs potentially be, now and in the future? After all, Medicare and Medicaid don’t cover every health-related issue – there are still plenty of expenses you will be responsible for paying.
- Emergency savings – Do you put any money away for a rainy day? Unfortunate events can occur without warning. But if you have an emergency fund, then you’ll have a better chance of getting through hard times without taking a big financial hit.
- How will you handle long-term care? It’s possible you may need to move into a community where you will receive the assistance you need, or hire an in-home caregiver in order to live a safe lifestyle. Do you have long-term care insurance? What options are available to you?
- What will happen to your family once you pass away? Do you have a spouse or dependent who would need to be cared for? Do you have a legal will to divide your estate, and do you have a living will that lists out your decisions for healthcare if you’re incapacitated and unable to make a decision?
Meet with a Financial Advisor
We know that just reading everything we’ve listed above can be daunting. Fortunately, you don’t have to – and shouldn’t – go through this process all by yourself. Once you have your goals listed and an idea of what your future should hold, find a licensed financial professional who can help you navigate this process and help you set up a plan for your unique situation. Financial advisors will also assist you with finding ways to maximize your income, minimizing your tax responsibility and even finding programs or benefits that could be helpful to you. If you don’t currently have a trusted financial advisor, look around and interview at least three people to find one that you like the best. While financial savvy is important, it’s also important to like the person you’re working with.
Put Your Papers in One Place
As you’re getting your finances in order, it’s important to actually get them “in order.” However you want to accomplish this – putting everything in a file folder, setting aside a desk drawer, placing documents in a safe-deposit box – find one central location to store important papers and legal documents. If you store items away from your home, be sure to make copies and store them in an easily accessible place. Finally, let a family member, friend or trusted professional (such as an attorney) know where all your important papers are kept in the event of an emergency.
Review Everything Regularly
Once you’ve set up your finances to work for you, don’t stop there. Review your financial profile once a year to ensure your financial future is as solid as possible. Your advisor will be able to let you know if there are any new regulations, benefits or programs you can take advantage of. And, of course, looking over your finances on a regular basis will allow you to make sure you’re making your money work as hard as possible for you…giving you peace of mind for now and in the future.
Compassionate Care for All Stages of Memory Loss
Bridges® by EPOCH at Norwalk provides assisted living memory care that is comfortable, positive, safe and engaging. Exclusively dedicated to caring for those with Alzheimer’s disease and other forms of dementia or memory impairment, we’ve created a wellness-focused lifestyle that promotes dignity and individual preferences. Our memory care professionals receive specialized and ongoing training designed to help residents maximize their independence in a secure, calm environment – making a truly positive impact on the lives of our residents each and every day.
Personalized Services
Bridges® by EPOCH at Norwalk’s services are designed to recognize and adapt to the unique challenges and individuality of each resident, while ensuring comfort and safety. We believe in a full-service approach to care and provide a high level of personalized attention for every stage of memory loss. At Bridges® by EPOCH at Norwalk, our residents have it all for one simple monthly fee.
Community Amenities
Within a beautiful residential design, Bridges® by EPOCH at Norwalk provides everything residents with Alzheimer’s disease and other dementias need to enjoy comfort, familiarity and security. Soft colors, directional cues, aromatherapy and interactive life stations create a peaceful and secure environment where residents feel at home.
Contact us today to learn more.