Finances are a significant concern for most seniors. Once they retire, they may no longer have the luxury of a constant flow of income. Besides, they may have increased financial needs since they may have to move to specialised facilities. Below is an article with four financial planning tips for senior citizens.
If Possible, Downsize Your Home
The truth is that you no longer need an expansive property as you age. More often than not, your children will have moved out of your home to start their own families. With reduced income, it can be challenging to keep the property in pristine condition. Moving into a smaller property allows you to free up some extra cash. Besides, it reduces the monthly home maintenance costs.
Avoid Impulse Spending
Once you retire, you may experience a financial windfall once you receive your life insurance or superannuation benefits. As such, it would be tempting to buy a luxury car or take an expensive vacation. However, such spending comes with severe repercussions since you could get cash strapped within a few years. Remember, vehicles are depreciating assets; hence, it will be difficult to recoup your investment once you get broke. Consider solid investments such as investing in real estate or government bonds once you receive lump-sum payments from your life insurance or super. These investments will give a constant flow of income, thus enabling you to live a comfortable life.
Prioritise Your Health Insurance
It is difficult to tell whether or not you will suffer a chronic illness as you age. However, the fact is that your health needs will increase as your body and immunity become weak. For this reason, you should have the best health insurance on the market. Other than the usual medical costs, it should also cover expenses such as purchasing a mobility scooter or moving into a nursing home. It is a sure way to protect your savings and ensure you do not burden your family with medical expenses.
Create An Estate Plan
An estate plan is a sure way of taking care of your loved ones once you die. A critical component of the plan is your will. The document dictates how you would want your wealth and debts shared. Additionally, your estate plan should consolidate your assets. For instance, you could decide to let go of depreciating assets or properties that you no longer use. Proceeds from the sale could go into fixed deposit accounts.
It would also be wise to track your spending. It is a sure way to know your current financial situation. Additionally, do not shy off from seeking financial planning advice from skilled and experienced practitioners. Reach out to a professional for aged care financial advice.Share
4 June 2021
Planning for your financial future can be tricky. With so many outgoings to juggle, the typical person finds it difficult to keep track of their spending. Learning some basic financial skills, like how to make a budget and how to invest for the future, can make a huge difference to your long-term financial health. Take a look at our posts to find out how you can save money without making big sacrifices to your way of life. Learn about essential aspects of finance, such as retirement planning. Whether your goal is to get out of debt or save for a rainy day, we can help you achieve it.