Starting early when it comes to investments may seem like a difficult task for aging seniors who are trying to put money away towards paying for assisted living costs later in life. Foresight even a few years before one may need to move out of one’s home and into a residence where they’ll be able to receive care can provide more than financial dividends.
It starts by budgeting for the future. As one retires, it helps to understand markers and probabilities of needing the more extensive care offered in assisted living facilities. Talking with one’s doctor or family can provide a wealth of information that can help older Americans determine the likelihood of needing nursing care, or simply help with day to day tasks.
Seniors should evaluate their investment strategy with the help of their financial advisors to take into account future senior housing and care.
As one’s career winds down, more of the monthly budget should be placed in safer investments that will still put off a fixed income either though interest or dividends. The fine line between vehicles that can provide a healthy return but won’t leave someone who has just retired in the lurch is a decision best left to a qualified financial professional, but knowing when to transition into safer assets is key to beginning the process.
If you are still five or 10 years away from retirement and have created enough of a retirement nest egg to feel comfortable, consider using some of your cushion towards short-term investments that can provide a higher reward at the expense of a possible loss.
The best bet may actually be to begin discussing financial solvency among several generations of family members. While discussing specific figures can be tacky in some circles, investment strategies and ideas of where to put money generally aren’t.
You can also enlist the aid of advisers like George Wells III, a Detroit-area financier who targets senior populations and helps them find money that they might not have had anyway.
For example, he told the Free Press that many seniors who fought for their country and received an honorable discharge may be eligible for a government pension program. It’s worth $2,000 per month in some cases, or enough to offset most of the costs of an assisted living facility or even in-home nursing care.
Wells also likes “stretch” IRAs, which are similar to other retirement savings accounts in that they provide tax breaks to seniors who have been saving their money. However, the holder of the IRA can name a spouse as a beneficiary, meaning that unlike the conventional individual retirement accounts, the tax breaks continue into one’s twilight years.
What you choose to do about your finances requires defining a large number of variables that you may or may not have any control over. But you can get started with ideas like these and envision a brighter, less fiscally strained future if you take an hour a week or so to get your money in order.
Tags: budgeting, finances, investments, paying for assisted living
