Financial Tips for Seniors

Adults keep financial matters into consideration many times in their lives. This is especially true for senior citizens, who have additional considerations to keep in mind. For older people, how money is saved and spent tends to change based on priorities. By assessing the finances you have as well as any money management options you have used, you are able to ensure that you have successfully planned for the future. There are key points to consider when creating a financial plan. Here are some of the main tips for seniors regarding their money.

Track Expenses and Budget

One of the most important things seniors can do is monitor their financial plans. While it is great to have everything going exactly to plan, the truth is that there can be unexpected curveballs that can throw a financial strategy out of place. This makes it important to make a plan with money for contingencies factored in. Equally, you want to make sure that your budget is monitored to ensure that everything is on track. This can include reviewing costs for expenses and making any changes as needed.

 

Protect Yourself Against Fraud

It’s not something people like to think about, but senior citizens are one of the biggest groups targeted for financial fraud by criminals. There are many ways scammers try to get access to money, including e-mail phishing, offering a fake prize, pretending to be a family member who needs money or selling fake prescription medicines. The good news is that there are steps you can take to prevent yourself from being affected. First, be skeptical of offers that come via phone or e-mail. You can also avoid giving information to people that approach you without you starting the exchange. Family members can also be set up to receive notifications if large amounts of money are withdrawn from your account. There are other methods that can be done, which can be discussed either with your bank or financial planner.

 

Consider Power of Attorney

Establishing power of attorney is a recommended step for older people. If you are unable to manage finances yourself, power of attorney allows a family member to do on your behalf. The length of time someone can have power of attorney depends on the need; a minor accident could only need power for a limited time, but major issues such as cognitive decline could require it on a continuous basis. You can consider using more than one person to have power of attorney privileges if there are concerns about potential fraud or mismanagement.

 

Hire a Financial Advisor

Much like medical or legal advice, having the wrong financial information can have major consequences. This makes having a quality financial advisor an important step to take for seniors. Selecting the right advisor can be a detailed process. You want to find one that will communicate openly and clearly, as well as build trust with your loved one. By having a provider that you feel comfortable discussing a senior’s financial goals and concerns, they can provide you with the right amount of guidance.

Before selecting a financial advisor, you want to request a written disclosure document. By doing so, you get detailed information on an advisor’s background and business practices. You can also request a follow-up interview, which many advisors will do for no cost. This gives you the opportunity to ask additional questions. Some suggestions include asking about their work experiences, the type of services that are offered, and the overall approach to financial planning. Once the interview ends, you should be able to get a complete sense of the advisor’s demeanor and personality.

There are numerous ways to obtain help with managing finances for seniors. While there are steps you can take proactively it can be helpful to use external resources as well. By doing so,
you ensure that your loved ones will be able to secure their finances now and in the future.