Bean Counting: A Brief Talk About Financial Independence for Seniors

Senior Tips  |  August 23, 2021

4 minute read

The years between the ages 60 and 80 are often referred to as the “golden years”, a time when older adults have retired. After fulfilling personal and professional commitments, we look forward to living out our golden years stress-free and enjoying our time to the fullest.

Why is Financial Planning Important?

Financial planning helps in budgeting income and expenses. The most significant outcome of financial planning is that one can lead a peaceful and stress-free life. To lead a rewarding life during retirement, it is essential to start planning ahead and investing for it in order to pre-empt, mitigate, or redirect the financial burdens of unexpected costs.

Reasons why financial planning for retirement is essential:

• One cannot work forever (Nor would we want to do so)
• Few of us have hoarded as much treasure as the ancient pharaohs
• The average life expectancy is increasing (So we’re sticking around longer)
• The prevalence of morbidity factors and their subsequent medical costs are on the rise
• Many parents still contribute to the welfare of their families(Even after retirement)

Tips to Effectively Manage Finances for the Elderly

1. Invest wisely: There are various investment options that offer low or no risk return on investment. These include but are not limited to products offered in banks and those offered by insurance companies.
2. Health insurance: Old age is associated with high morbidity and high mortality. Due to the rising cost of private medical care, it is common knowledge that one needs to have some strategy for addressing this reality. A health insurance plan may offer that solution.
3. Life insurance: a wise man once claimed, we can jump off that bridge once we get to it. Although this is usually the fate that people subject themselves to with improper financial planning, we like to think that you can cross that bridge instead. Life insurance can protect one partner/spouse from financial hardship in the event of the passing of their loved one. This can also benefit one’s children, or even a charity of choice, after one’s passing.
4. Residential insurance: Risk exposure exists wherever you may live. Whether residing in a retirement community, a rental apartment, or a home that you own, the fact remains that you can be held liable for injury/death of others as well as property damage to others on or in relation to your home. This means that you should not cut corners with tenant’s insurance if you do not own the place; and if you do own the place, keep condo or homeowner insurance active (Even if you already paid the mortgage on the home). Dollars a day can save you from having to pay hundreds of thousands out of pocket.
5. Avoid taking on more debt: It may be advisable to refrain from accumulating more debt. Debt will put a financial burden on you to repay a principal loan in addition to its consequent interest and fees. This can leave you feeling stressed, and it’s been described as a weight hanging over your shoulder.
6. Avoid unnecessary expenses: Try to bring down your living costs and cut out unnecessary expenses. It is said that in trying to live humbly, people often find that less means more.
7. Track your expenses: Many people have no idea where their money goes. It shows up one day, then magically disappears the next. Save your bills and track your expenses monthly. Many budgeting tools exist, and there are many apps that help with this too.
8. Think through your goals & values: Understanding your goals and values will help you to frame and make important decisions during your journey to financial independence.
9. Consult with professionals: Accountants, lawyers, agents, brokers, financial advisors, and other professionals all provide consultation services and can help you fit all the pieces together in this complex puzzle. Leave the guesswork out of this and consult a pro.
10. Don’t put all your eggs in one basket: Diversify your portfolio of financial resources to ensure that you may whether an economic storm or two.

Conclusion

Bean counting is an important part of financial independence for seniors. If done properly, it can lead to rewarding results for seniors during their lives in retirement. And, on a side note, beans are allegedly good for the heart, so the more you eat, the more you ___!

Comfort Keepers Helps

Comfort Keepers senior care of Hamilton, Kitchener, and Waterloo has been helping seniors lead healthy, active, and enjoyable lifestyles for over two decades in North America. We understand the challenges of the golden years, we know what our seniors are capable of achieving, and we offer companionship and care that helps empower seniors to sustain their autonomy, maintain good health, and enjoy their time in retirement.
Our trained caregivers can make your day-to-day life easier and help you make the most of your time, rendering it a relaxing and enjoyable experience. At Comfort Keepers of Hamilton senior care, we can help you achieve your tasks so that you can focus on the things that matter. We help our clients find joy by elevating the human spirit.

Call us today for more information on how we can serve your needs.

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