As our parents and elders continue to age, the topic of retirement arises more frequently. They spent most of their adult lives working with the intention of eventually retiring securely. Unfortunately, many Americans face challenges when reaching that old age of retirement. Factors such as unwarranted expenses and the condition of the economy have left many Americans’ savings depleted. The entire process can be difficult and tiresome but with the proper guidance, it is possible. The following are steps to take to ensure financial stability for your elders.
- Start Early
One of the biggest issues people have with retirement is the regret of not starting early enough. The retirement process is extremely time consuming as it takes a while to build that financial safety net. The longer time you’ve saved or planned the better outcome you have financially. Starting as early as possible to optimize the amount of saving you will end up with will help you to ensure financial stability.
- Plan Rather Than Save
It has been proven that those who plan end up having more wealth than those who save. The best way to plan is to set short term and long term goals for yourself. For example, you can aim that within a certain amount of time you would have paid off a certain loan or a certain amount within that loan. When you’ve achieved that goal, set new ones and constantly work towards them. Being goal oriented will help you stay in control of your financial status.
- Be Debt-Free
Owing debts can take a toll on you financially but also emotionally. That thing weighing over your head to constantly pay back is not healthy. Being debt free will feel like a weight has been lifted off your shoulders. It will be one less thing to worry about and will assure an easy going retirement.
- Keep Cash Reserved
With the world we live in, there is a level of uncertainty and you can never be too sure of what could happen. In times of emergency, having cash saved up is vital. During retirement if you do not have enough cash on hand, you can be left in a terrible situation. It is best to have at least 12 months’ worth of living expenses saved up to guarantee financial security otherwise, you will be left unprotected and vulnerable.
- Make It Legal
In case of your elders’ health getting bad quickly, it is best to seek legal help from an experienced elder law attorney and to have everything in writing. You should appoint heath and financial power of attorneys to protect their wealth. This would make sure that the best financial decisions are being made or them. A living will in place will take care of their estate and what happens with it.
Disclaimer: This article only offers general information. Please do not use this article for legal advice. Each case has special circumstances and must be reviewed by a specialist.