Although most elderly individuals are considered to be both frugal and money-wise, seniors are capable of making major financial mistakes. These errors might be caused by a pervasive sense of goodwill or a need for immediate financial relief. Either way, these actions can have a devastating and lasting impact on the financial well-being of aging adults, especially when taking into consideration that the average lifespan has significantly increased.
The following, presented by Home Care Assistance of Tampa Bay, are several common financial mistakes made by seniors, along with strategies that you can use to help your loved ones avoid them.
- Giving Too Much – Living on a fixed income is not easy, but in spite of this fact, some aging adults have a near-constant willingness to share what they have, making them a prime target for unethical individuals and organizations. Older adults regularly contribute to charitable causes without first researching them so it is important to talk with your loved one about his or her giving habits and associated dangers.
- Liquidating Assets Too Quickly – Selling off assets should be a last resort. Unfortunately, some seniors do not see other ways of addressing the short-term financial problems that they are facing. Before selling off real property or using reverse mortgage options, it is best to find out what alternative strategies exist. You should regularly discuss finances with your senior family member and encourage them to ask for advice and support before making big, money-related decisions.
- Limiting Coverage – When funds grow low, many seniors start cutting their insurance back. They might not be reliant on these policies now, but could have serious need of them in the future. Sit down with your loved one and a financial planner to discuss the different forms of cover that currently exist. He or she may be qualified for loyalty bonuses and consolidation discounts that will provide considerable savings without compromising the protections that are in place.
When discussing finances, it’s also good to make sure that your loved one has a plan for the future. Helping them to stay organized early can ensure their financial freedom and maximum comfort as they age. You may also want to discuss options for long-term care and possible ways to pay for this type of assistance. Whether your loved one wishes to move to a local nursing home or prefers Tampa Bay live-in home care, discussing options for how to pay for care can relieve the future burden of stress and can ensure your loved one’s wishes are granted.
For more information about senior financial matters or how to pay for home care, contact Home Care Assistance of Tampa Bay at 727-330-7862. Our Care Managers are available 24/7 to answer your questions.