Smart Financial Planning For Older Adults

Running out of money during their golden years is one of the biggest fears seniors have today. It is a valid and serious concern. As life expectancy increases and inflation soars, the cost of living longer has consequences that many seniors never anticipated nor planned for during their working lives. The nest eggs they built and hoped would carry them through their retirement years could run out and put their financial security and quality of life in jeopardy.
The world of finance is complex. Even the most financially astute seniors admit that it is extremely difficult if not impossible to successfully manage their money without professional help. Getting the right financial advice is essential because few retirees can afford to make mistakes, especially those living on limited or fixed incomes that allow zero margin of error.
Finding The Right Financial Advice
The level of assets that seniors have accumulated can vary greatly, so there is no one rule of thumb that applies to everyone when searching for expert financial advice. One strategy that does apply in every situation is the need to be proactive rather than reactive with regards to financial planning. If you wait until a financial crisis occurs to get professional help, it may already be too late to protect the money you worked so hard to earn.
Problems that put older adults at financial risk are often unforeseen. It can be issues with declining health, concerns about funding rising medical costs, and in certain cases – cognitive ailments that impede a senior’s ability to make informed, rational decisions. These and other reasons justify why seniors should get help with their financial affairs as early on as possible.
Different Advice For Different Needs
An excellent starting point to get your financial affairs in order is to speak with an attorney experienced in elder law and estate planning. They understand the legal mechanisms that can protect a senior’s rights and assets including wills, powers-of-attorney, trusts, asset transfers and other important legal issues that can affect older adults and their families. These attorneys are also an excellent source of referrals to other trusted professional advisors who can provide additional assistance to seniors on an as-needed basis.
There are many tax incentives that apply to seniors and consulting with a Certified Professional Accountant (CPA) is an investment that can return significant dividends in the short and long term. Some of the services they offer include bookkeeping, bill paying, tax reporting, estate planning assistance, long term care options, and financial oversight that can protect a senior’s assets from all forms of fraud.
If your assets are significant enough to merit a higher level of financial expertise, consulting with an experienced professional financial advisor is highly recommended. While many financial advisors have similar credentials specific to their training and experience, they are not all the same and it is important to understand how they are different. Some financial advisors specialize in higher risk investment strategies designed to build wealth while others focus on lower risk planning that is structured to protect and preserve assets. The latter type of advisor is usually better positioned to help most older adults because by the time someone reaches retirement age, the preservation and protection of assets already accumulated is what most older adults need for themselves and their families. In either case, make sure that the financial advisor you choose is a fiduciary which means that he or she is required by law to put your financial interests first and foremost ahead of their own. It is an important distinction that can not only protect your assets but make the cost of managing your money a wise investment rather than an excessive expense.
Validate, Then Trust
No matter what professional advisor you choose to work with, always perform due diligence to confirm their capabilities and reputation. Ask for referrals. Contact their professional organizations and confirm their good standing. Perform online searches and read their client reviews. Getting the right advice from the right advisor is always the right thing to do to if you want to protect what you have worked so hard to earn.
Last but most importantly, consult with your professional advisors sooner rather than later. The peace of mind you will enjoy by being proactive is priceless.