Many seniors have financial difficulties because they haven’t planned well enough. If you’re a caregiver for a senior loved one, you may want to discuss finances to help him or her avoid the following common financial mistakes.
Not Understanding the Financial Situation
Many seniors don’t have financial plans upon entering retirement. They’re used to living paycheck to paycheck and have no plans for retirement. Seniors need to stop and make sure they have enough money coming in to cover their basic living needs. If there isn’t enough money coming in, they may need to consider how they’re going to cut unnecessary expenses. This may mean selling the family home and moving to a cheaper place. Whatever the case, talk with your loved one to establish a game plan.
Many older adults face challenges such as decreasing physical and mental health, so the costs of home care should be considered in financial planning decisions. There are a variety of age-related health conditions that can make it more challenging for seniors to live independently. However, many of the challenges they face can be easier to address if their families opt for professional at-home care. You can rely on expertly trained caregivers to keep your loved one safe and comfortable while aging in place.
Not Having an Emergency Cash Fund
Seniors should have at least two years of expenses set aside in cash. Most seniors will need about 80 percent of the money they were spending when they were working. After accounting for money that automatically comes in each month, your loved one should work at setting aside enough money each month to fully fund this account as quickly as possible.
Saving money throughout their lives can help people enjoy their golden years without compromising their quality of life. If you have a senior loved one who needs help maintaining a high quality of life while aging in place, reach out to Home Care Assistance, a leading provider of senior care Rhode Island families can rely on. All of our caregivers are bonded, licensed, and insured, there are no hidden fees, and we never ask our clients to sign long-term contracts.
Not Having a Wise Investment Plan
After the emergency fund is fully funded, seniors should consider making wise investments. With bank accounts generally paying no interest, seniors need to be investing their money where it can grow. For most seniors, at least 40 percent of their investments should be in safe investments that grow at the rate of inflation. Possible solutions include treasury notes, mutual bonds, and certificates of deposit.
Not Having a Household Budget
Seniors need to create household budgets. Have your loved one start by writing down every penny he or she is currently spending. Many will be surprised where their money is really going. Create a plan for paying bills and for savings. Family caregivers should help seniors understand their current financial situations and help them develop sensible programs for the future.
Smart financial planning is just one of the many things that can enable seniors to age in place gracefully. Some seniors need occasional assistance at home, and oftentimes the family members who take care of them need time away to run errands, take a nap, go to work, or take a vacation. Rhode Island respite care experts from Home Care Assistance are available on an as-needed basis, giving your family peace of mind that your loved one will remain safe and comfortable while you relax or focus on other important responsibilities. For compassionate, reliable in-home care, trust the experienced professionals from Home Care Assistance. Reach out to one of our dedicated Care Managers today at (401) 284-0979 to learn about the high quality of our in-home care services.