Your parents’ retirement funds have run out. Home repairs, rising utilities, and tax increases have drained their 401k and savings. They’re living on their Social Security income now, and you’re worried. It’s understandable to be worried. It’s also common for seniors to discover the money they’d saved doesn’t go as far as they thought.
Now that their bank accounts have dwindled, you don’t know what to do. Use these tips to help them stay financially sound.
Start by cutting expenses. If they own a car but use public transportation all the time, sell the car and drop the car insurance. If they get the newspaper but only read the news online, subscribe to the online paper and give up the print version.
Coupons can help your mom and dad save money in the grocery store. Cable television may not be necessary if your mom and dad rarely watch TV. If they have a dryer, they can save money hanging clothes outside to dry in the summer.
Look for Any and All Senior Discounts
Some states and towns offer discounts to seniors on things like property taxes and some utilities. They might be able to get senior discounts from pharmacies, grocery stores, and mass merchandise retailers. It’s always worth asking. Even if there are no available discounts, you’ve tried.
Talk About Downsizing
Now’s a good time to look into downsizing. If your mom and dad’s house is large and costs a lot in heating and property taxes, it’s worth looking at something smaller. A smaller, one-level home is often cheaper to heat. A house with less square footage is likely going to cost less when it comes to taxes.
Talk to a real estate agent to see how much equity is in your mom and dad’s home. If they have enough equity, they should be able to buy a home for cash and wind up saving a lot of money.
Consider a Reverse Mortgage
As a last option, consider a reverse mortgage. They shouldn’t be used until there are no other viable options. With a reverse mortgage, you transfer ownership of your home to a financial institution and get to withdraw the available equity right now.
When a senior takes out a reverse mortgage, they get to stay in their home until they decide to sell or they pass away. The reverse mortgage company deducts a percentage from the equity each month. When the house does sell, the reverse mortgage company takes the amount of equity they’d paid out over the years. If there is any balance, it goes to the homeowner or the homeowner’s heirs.
Your parents want to age at home. When money issues arise, it might be a sign that they need help with daily tasks. Look into senior care services as a way to help them age at home. Call our senior care company.