Protect Your Money: Personal Financial Guide for Seniors

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Last Updated on October 7, 2021

Did you know that more than 15 million older adults in the United States aged 65 and up lived below the poverty line? This figure rises with age and is higher for women, Blacks, and Hispanics, as well as those in poor health.

Did you know that more than 15 million older adults in the United States aged 65 and up lived below the poverty line? This figure rises with age and is higher for women, Blacks, and Hispanics, as well as those in poor health.

The prospect of falling below the poverty line can be frightening. However, there are several steps you can take to ensure a certain quality of life in your later years. Today, we would like to tell you more about it – including how to obtain social security benefits, take care of your retirement portfolio, build your estate, save money, and get insurance.

Obtain Social Security Benefits

If you are an older adult, you might qualify for social security benefits. The amount of money that you can receive depends on two factors – your average income over your thirty-five highest-earning years and your age. 

If you are worried about not being able to get as much money as you need, speak with a financial advisor. They will help you understand how much social security will cover, as well as aid you with looking into other financial options.

Get Insurance

It is never too late to get the right type of insurance. You might have ignored this critical step in the past, but that should not stop you from taking it today. Here are a few interesting types of insurance that you might want to look into:

  • Life insurance. This type of insurance pays out a lump sum upon your death, hence the name. It can help pay for end-of-life expenses, such as funeral costs and medical bills. Life insurance policies typically offer coverage between $250,000 and $500,000. It depends on the kind of policy you go for and your needs. You can browse and websites alike to get more precise information on life insurance plans.
  • Disability insurance. This insurance pays out a lump sum if you become disabled, and it can help pay for your costs of living, such as groceries and medical bills. Disability insurance policies typically offer coverage up to $500,000, depending on the policy and your needs.
  • Homeowners insurance. This insurance will help you pay for repairs if your house ends up getting damaged. Moreover, it can pay for liability costs if someone gets hurt in your home and sues you. Homeowners’ insurance policies typically offer coverage up to $500,000.

Take Care of Your Retirement Portfolio

Have you been thinking about withdrawing money from your retirement portfolio? In that case, you need to be aware of the fact that there are penalties for doing so. If you do not want to regret your decision, you need to fully understand its implications before taking out your money early. 

If you need access to your funds before retirement, you might want to withdraw these funds in stages. Other than that, you can withdraw funds for specific purposes only, such as paying for medical expenses.

Build Your Estate

Building one’s estate is not a novel concept, but it is something that many people forget about. However, if you want your loved ones to live a happier and safer life after your departure, you should start doing it as soon as possible. 

If you have assets, such as a house and investments, these can be transferred upon your death and passed on to your beneficiaries. It is generally recommended that you consult with an estate planning attorney, but there are a few things you can do on your own:

Make a Will / Revocable Trust

It will help you ensure that your assets go where you want these assets to go upon your death. If you do not have a will or revocable trust, the court will divide up your assets in a way that you might have found to be unsatisfactory.

You can make a will online, but talking to an estate planning attorney is the better option. They will help you determine what’s best for your situation, as well as help you create a customized will that suits your preferences.

Create a Power of Attorney

A power of attorney is a document that names someone authorized to make financial decisions on your behalf. There are two types of power of attorney – durable and springing. A durable power of attorney is valid when you are both cognizant and incapacitated, while a springing power of attorney is only valid when you are incapacitated. In order to appoint someone as your power of attorney, you must do it in writing.

Name Your Health Care Proxy

You should name someone who will make healthcare decisions for you if you become unable to do it on your own. This person will be able to tell medical personnel taking care of you whether you are to take certain medication, be operated on, and put on life support, among other things.

Save Money

It is safe to say that saving money is not easy. There are always unexpected expenses to take care of, such as car repairs and medical bills. Luckily, you can save money in a multitude of ways.

  • You can start buying generic medications. Generic drugs are cheaper than their brand-name counterparts. In fact, they can end up being up to eighty percent cheaper.
  • If it is time for you to renew your health insurance, you can shop around for healthcare coverage with lower premiums. 
  • If you are in debt, you do not want that debt to start adding up. Instead of spending money on things that you do not need, you might want to switch your focus on paying off your debts.

In Conclusion

As you can see, there are many ways in which you can take care of your financial stability while aging. It might seem intimidating to think about your financial future, but you will not have to worry about it if you prepare yourself in advance. 

Make sure to consider doing things like obtaining social security benefits and building your estate, as well as buying the correct type of insurance. That way, you should be ready for whatever life throws your way!

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