Home Lifestyle Financial Tips for Seniors

Financial Tips for Seniors


Reaching your golden years is an accomplishment in and of itself. Getting here has taken you a lifetime of hard work, and during that time you’ve been working hard, budgeting carefully, and saving and investing so that you can afford retirement.

And now you’re here, but that doesn’t mean that your money concerns are gone forever. It’s crucial that you take care of your cash. Here’s how to maximize your wealth in retirement, as well as how to handle sudden expenses and financial problems.

Your budget is everything

You’ve made your money, but you still have to make it last. So make a retirement budget, and be conservative about it: you don’t want to outlive your money! Be sure to hang onto an emergency fund that lets you handle things like medical bills as quickly and as effectively as is possible.

And be wary of your own generosity: giving big gifts and bailouts to adult children and grandkids may feel good, but giving away too much too fast can wreck your finances and may later force those same kids and grandkids to help you.

Monetizing assets

A lifetime of hard work makes a difference. You may not be super-rich, but you do have wealth. But, if you’re like many seniors, you may find that too much of your net worth is tied up in things that are highly illiquid. This can include your home, for instance, or your eventual insurance payouts.

Finding ways to monetize these seemingly illiquid assets is one way to find the money that you need in order to maintain your lifestyle or handle expenses like medical bills. You should consider options like reverse mortgages and, in some cases, viatical settlements.

What is a viatical settlement? It’s when you sell your eventual life insurance payout for cash now, explain the experts at Sell My Life Insurance Policy. The idea is that you take a chunk of cash (at a discount) now, when you need it most, and give up the later life insurance payment (which, by definition, you wouldn’t be around to enjoy anyway).

Find a financial planner

You may not be earning a salary any longer, but that’s all the more reason that you should find a financial planner. It’s vital that your investments secure your future for as long as you live, and accomplishing that takes careful planning and smart decision-making.

A financial planner can help you plan for your future and enjoy your present. Smart investing and the right budget can ensure that your retirement savings last you for as long as they need to. You should also work with a financial planner (and with an attorney) to maximize your estate and the wealth that you are able to pass down to your heirs.

Be on the lookout for scams and fraud

Fraud is a serious crime, and scams are everywhere. And, unfortunately, fraud against seniors is particularly common and particularly dangerous. Seniors are targeted by con artists, scammers, and even their own family members.

As a senior, you need to stay as sharp as possible when it comes to potential scams and fraud. Be wary of phone calls and emails — not everyone is who they say they are. Learn the warning signs of scams, such as requests for private information like your bank account number. And prepare for your own cognitive decline by putting safeguards in place and planning for your future physical and financial health with the help of trusted family members and professionals.