Thinking about retiring and other issues associated with money as we age can become downright stressful. However, with a little bit of planning, forethought and proper investing, even as we reach our senior years, we can still maintain financial security and quality of life without worry.
Not sure where to begin when it comes to financial planning? No problem. The Placer County live-in care specialists at Home Care Assistance offer some valuable tips on how to you can invest money now in the hopes of enjoying a little bit of “gold” during your golden years:
Create Your Own Portfolio
One good way to generate retirement income is to sit down with a financial advisor and create a personalized stock and bond portfolio. The benefit of this is that it allows you to create an investment plan that will include a respectable long rate of return. Additionally, you will be able to take out 4 to 7 percent annually and make adjustments to the amount that you withdraw based on inflation.
Bonds are a time tested form of investment. When an individual purchases a bond, they are basically lending money to the government or to a corporation. The government or corporation that borrowed the money from you will continually pay you interest until the bond matures. At that point, the money that you invested is returned to you. This is a great way for seniors to have a steady source of income after retirement.
Real estate has always been the lifeblood of financially independent individuals. One downside of owning property or real estate is that it may require maintenance from time to time and it will certainly incur some expenses. Over the long run, owning investment properties and understanding what to do with them can be a great retirement investment. However, as you age it’s important to consider if you’ll be able to maintain a separate place of residence or if one of your children are willing to take on the task, possible for a percentage of the earnings.
Aging adults also need to be mindful of investment scams that target the elderly. It’s crucial to verify sources and to never give out any important information, such as credit card or account numbers, to strangers over the phone. Chances are, if it seems too good to be true, it probably is.
Planning for one’s financial future is important and should include all of the above as well as a plan for long-term care. Seniors should make sure all legal documents such as living wills and trusts are created and should speak with adult children about future wishes regarding end-of-life and if a nursing home, assisted living facility or home care in Placer County is preferred.
For more information about senior living, reach out to Home Care Assistance of Placer County at 916.226.3737. Our Care Managers are available to answer questions 24/7.