Managing your money after retirement can be as important as planning for retirement savings in the first place. It’s a good idea to have a few best practices or at least some ideas of things you might need to better manage your money. After all, you worked hard for what you have, so you want to ensure it’s serving you well now that you’re going to use it.
Check out these six tips for managing money when living in an assisted living community.
One of the first steps toward better financial management is tracking your expenses to see where your money is going. You can’t know if you’re overspending if you don’t know what you’re spending, so start by tracking every dollar spent.
This isn’t a budget, per se, but rather an outline of what is costing what. That way you can visualize how to trim the fat. See where the money goes, and then determine where it can be better managed. Chances are a few things will jump out at you just by writing everything down.
Taxes aren’t fun to deal with at any point in life, and many people avoid the subject altogether as a result. But if you’re looking to maximize your finances, you need to ensure you’re not overpaying taxes.
Sure, they're a requirement for everyone, but there are certain behaviors that the government chooses to incentivize with tax breaks. It’s not uncommon for people to qualify for a few of these without knowing it. Colorado Springs has numerous tax professionals that can help you see if you might qualify to capitalize on those incentives. Schedule appointments early in the tax season or even ahead of the season so you have time to plan.
As we age, we are sometimes faced with increased costs for medical expenses or other life needs. Some people might otherwise qualify for programs that they've paid into with taxes or other government benefits, but because of the assets they hold, they find themselves excluded.
Other times, you might encounter a sudden expense beyond your means that threatens your personal property. A trust might be a solution to these and other issues. A trust is a legal entity that manages your assets for you. Placing some, or even all, of your assets in a trust might provide just the right amount of freedom for the kind of life you want to have. A trust might not be right for everyone, but it’s worth discussing with your family and financial planner or lawyer to see if it can fit your situation.
An excellent way to ensure your finances remain in order is to remove yourself from the equation as much as possible. That’s not to say you shouldn’t be involved in handling your own money, but rather that you should make as much of it as automatic as possible.
The less you have to mess with your finances the better, so consider setting up things like direct deposits and automatic payments for recurring expenses. Additionally, there are apps for mobile devices that can help you manage your finances, or you could even speak with a dedicated financial manager. In fact, your personal bank might be able to take care of a large amount of it for you. No matter what method you use, there are plenty of options to make your money management streamlined and simplified.
So much of finance is tied to credit reports and scores nowadays that it’s impossible to have a comprehensive discussion of money without touching on it. One of the best things you can do to secure your financial life is to monitor your credit. Thankfully there are a couple options available to you.
You can choose to monitor it yourself through one of the free online services for checking your credit score and report, such as Credit Karma. Or you can choose to sign up for a credit monitoring service such as ExtraCredit.
Having your identity stolen can be a nightmare to recover from, taking months or even years to undo. An ounce of prevention is worth a pound of cure in this case, so take the time to monitor your credit in some capacity.
Nobody wants to think about worst case scenarios, but that’s part of the reason for financial planning to begin with. Medical emergencies or unexpected expenses that can pop up are bad enough, but you’ll want to plan for them in case you’re unable to make the necessary decisions at the time of need.
This is where having a power of attorney already designated and documents outlining your wishes comes into play. These documents are crucial to overall financial well-being because they give you peace of mind for any unforeseen emergencies. Colorado Springs is full of lawyers who can set these up for you easily, but after they do, make sure you let your family know about them just in case.
Part of being able to relax and enjoy the benefits of a community like Broadmoor Court assisted living community is knowing that you don’t have to worry about outside factors like running out of money. Whether you’re freshly retired or you’ve already adjusted to the modern retiree lifestyle, these tips can help you maximize your finances. Because you want to be able to fellowship with your neighbors, enjoy the fruits of your labor and benefit from all that assisted living offers, not stress over money.