Seniors don’t just need to focus on saving money over the holidays; when they live on limited incomes, budgeting is crucial year-round. But, with the holidays approaching they’re sure to have additional expenses, which makes financial planning even more important to ensure that seniors can get by! The following are 10 useful financial planning tips that all seniors should consider over the holidays:

1. Talk to a professional – talking to a financial planner, either by using a service or speaking with one provided by a local branch of your bank can help you make sure you plan to meet your financial goals and needs. For example, they can help you get on track saving for future medical or care needs.

2. Don’t be afraid to ask for help – if you’re struggling to cover your basic needs then your local Area Agency on Aging can connect you with resources that can help.

3. Find ways to reduce utility costs – keep blinds down and windows and doors closed to preserve optimal temperatures for your house.

4. Walk, don’t drive – taking a car or public transportation can be more costly, so walk when possible and benefit your health and your wallet.

5. Never make fast financial decisions – always ask for a second opinion before making decisions.

6. Grow your own produce – plant a garden in your yard, a family member’s garden, or in a community plot to grow your own produce and cut down on food costs.

7. Buy healthy items – convenient, pre-prepared items might be fast and easy, but they are less healthy and often  more expensive.

8. Buy generic – generic brands are less expensive, purchase them for foods and for your medications.

9. Carpool – it’s more fun to travel places with company anyways; share transportation costs by carpooling!

10. Plan to stay at home – aging in place is the more desirable option for most seniors, and it can be more cost-effective too

Via: Home Instead Senior Care 

Carol Marak Carebuzz

Q:  My moms been thinking about selling her home, which she has maintained even though she is currently living with a relative. After doing some research online, I realized there are some significant tax implications of selling a home, especially when it is mortgage free. Is there a better option to allow her to minimize the tax costs and maximize her assets?

A:  The best bet is to have an estate planner review your mothers specific circumstance and those assets that can be found in her property. However, there are a few options available such as reverse mortgages, trusts, and transfer of assets. Otherwise, at the time of her death, the property will be transferred to the named recipient as outlined on her will. An inheritance and/or estate tax will apply, which can be substantially less than the taxes your mother could pay if selling her home. At that stage, the person responsible for the estate under the will can sell the property to pay for funeral costs, can distribute profits to named family members, rent the home, or live in it themselves. Talk to an estate planner before making any definite decisions about how to handle your aging mothers care and estate planning!

Source: ThinkGlink.com 

Carol Marak Carebuzz 

If you were asked to take in one of your grandchildren today would you do it? It can be a challenge, but for 6 million Americans, the answer is yes. Many grandparents are responsible for the primary care of their grandchildren from a wide variety of reasons, and need to overcome the following difficulties that younger parents are less likely to experience:

1. Seniors who are retired  often have limited finances available, and adding another member to the household can come at an increased expense.

2. Seniors may not have the same physical capabilities that younger parents would when responsible for the physical care of children when carrying them around, bathing, and physical chasing after children.

3. Seniors may neglect their own health needs when worrying about others.

4. Seniors may be under the stress of legal issues when trying to adopt a child or ensure that they legally remain the childs guardian.

In order to overcome these challenges, there are a number things that these older adults need to do in order to make the best life for themselves and for their grandchildren.

1. Find out if there are assistance programs available in their area to help grandparents raising grandchildren financially.

2. Remember to simply do the best that they can, and remember, that loving the children and ensuring their safety, health and happiness is all thats really important.

3. Of course, the health of their grandchildren is important, but grandparents need to remember if they dont take care of themselves, theyll be unable to care for anyone else.

4. Seniors can try to minimize the stress of the process by seeking support from those who have been in similar situations.

5. Respite help is necessary to give seniors a break. If children are too young to be in school seniors can find a daycare or ask for help.

Sources:

1. Care-givers 

2. AARP

3. Answers for Families 

Carol Marak Carebuzz 

Talking to your senior parents about estate planning  can be an uncomfortable subject, because many adult children don't want to feel like they're interfering with their parents personal affairs. Estate planning typically includes a legal will that outlines distribution of assets; a financial power of attorney which dictates who will look after a seniors finances when they become unable; a medical power of attorney, the person responsible for carrying out a seniors medical wishes; and a living will, which establishes a seniors healthcare wishes if they become unable to speak for themselves. Discussing your senior parents estate early on with them ensures that you understand the role that they expect you to play after their deaths or during a medical emergency so that their wishes are carried out.

Talking to your elderly parents about estate planning becomes more important if they have not completed the necessary steps to protect their assets and secure their wishes. When approaching the topic of family estate planning, make sure that your siblings and immediate family members are involved so they don't perceive your interests in your parents estate as self-serving. Ensure your parents understand you do not need to have the division of assets explained; it doesnt matter how much they are planning on leaving you. Whats important is that they put the legalities in place to ensure they control what happens to their assets, even once they loose the ability to represent themselves.

Sources:

1. SeniorJournal.com Robert Valentine

2. FamilyEducation.com

Carol Marak Carebuzz

Many people try not to think about what their goals and expectations are for their retirement until the time comes. But it’s important that your parents start thinking about their plans for the future when they are nearing their 50s if not earlier to ensure that they’re able to plan financially and meet their goals. Talking to your parents about their retirement plans can help you learn what role you will need to play, and help them get on track!

6 Tips for helping your parents meet their retirement goals:

1. Start early – talk to your parents about their retirement plans by the time they are 50…earlier is okay too, but don’t wait too long! However, if your parents are already retired, it’s not too late to have this conversation.

2. Know their retirement goals – where do your parents want to live when they retire? Do they want to remain in San Antonio? Do they want to travel? Do they want to take on any new hobbies or continue with old ones? This will help determine their financial needs for retirement.

3. How much? – you might not feel comfortable asking your parents about their finances, but it’s important to know if they have saved enough to get them through their retirement, while still meeting their goals. Ensure you let them know that they can’t live on their Social Security Benefits alone; according to studies, these only cover about 40% of retirement living expenses.

4. Check Social Security Benefits – although seniors can’t live on their Social Security Benefit alone, requesting to know how much they will receive can help with financial planning for retirement.

5. Let them know early retirement might be a possibility – whether or not they hope to retire early, with the economy today, many people are forced to retire at an earlier age. Take a look at the industry that your parents work in; if they are in an industry that’s really being effected, it might result in early retirement.

6. Discuss health care – knowing what your parents would want with regards to their health care is perhaps the most important so you know what to do if they are not able to speak for themselves. You can also encourage them to draft a living will, but make sure you know what they’d want with regards to senior services as well as health care.

Source  Senior.com 

Carol Marak Carebuzz