Financial Planning Tips for Senior Living

Posted by David L Reibstein on Friday, July 28th, 2017 at 9:45am.

Every senior citizen’s retirement plan today takes social security payments into account, but we are well aware that many of our clients aren’t counting on social security alone to support them throughout retirement.

Our clients have three or more income sources that they’re counting on to provide a steady income to finance their time in active adult communities (55+ Living Communities) or Continuing Care Retirement Communities (CCRC’s). Here are a few of the most important financial planning tips we’ve come across.

Evaluate Financial Planners for Retirement

A good financial planner will help you set goals and advise you toward stocks and investments that will help you earn a reliable income over time. While a 401K can provide significant income over time, getting expert help with a wider range of stock investments can provide an additional financial cushion for retirement living.

Review the credentials of financial advisors and, most importantly, pay careful attention to their fee structures and contracts. When in doubt, get the details in writing!

Invest in CD’s for Secure Interest

A CD is also a popular source of retirement income because it is fully insured and protected while also providing a steady interest rate of time. While stocks tend to perform better over time, a diverse retirement financial planning portfolio could include these safe bets as well.

Savings accounts are certainly an important piece of the retirement puzzle, especially if they earn interest. However, a CD typically provides a better rate over time.

Pension Plans for Retirement

Although a pension plan is hardly a sure bet for many workers today, those on the job market now should be on the lookout for jobs that offer this measure of financial security in the future. A pension plan could prove to be a deciding factor in choosing one job over another.

Building Home Equity and Rental Properties

By investing wisely in home improvements and updates that increase the value of a property, homeowners can cash in on the value of their homes when it’s time to pay for retirement. While this is certainly a long term plan, structuring your home improvements over time can pay off when it’s time to sell.

In addition, rental properties can provide steady income during the retirement years. They can also be sold off in order to provide a down payment for a home in a retirement community or a deposit for a retirement community.

Cut Your Costs to Save for Retirement

The long term plan of building a secure financial future for retirement involves building up your savings and investments whenever possible, and that becomes much easier to do if you’ve created a manageable budget for your weekly expenses. Review your eating out expenses, entertainment budget, and the “money leaks” where you may be losing money each month in small amounts that can add up over time.

What Are Your Retirement Living Options?

We’ve helped hundreds of families plan their retirement living options. Contact us today to learn more about how we can connect you with the right community in your area. Call 866-846-6272.


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