Managing Money As You Age
Managing your day-to-day finances can become increasingly time-consuming and sometimes overwhelming as you age. Health and other age-related issues may also affect your ability to manage your money effectively.
To manage your finances as you age, first understand your current financial situation. Don't hesitate to seek assistance when necessary. Here are some steps to help you get started:
Review Your Finances
Start by looking at your money records and bills to find any problems and figure out where you might need help. Your review should include:
Bank statements
Credit card statements
Mortgage statements
Tax records
Investment account statements
Credit reports
Utility payments to ensure they are up to date
Once you have organized your finances, start creating a plan and budget. If this process feels overwhelming, it’s perfectly fine to ask for help from a loved one.
Get Help with Bill Paying and Decision Making
Having a trusted person assist you with managing your finances can be incredibly beneficial as you age. You can get help by sharing accounts, giving trading permission, or setting up a power of attorney with someone else.
For daily money management and bill paying, some people choose to use joint accounts. A joint account allows a family member or caregiver to easily access money to pay bills or monitor expenses. However, it's important to understand that a joint account gives each account holder equal ownership of the money, including the right to deposit, withdraw, and manage the funds. This may not align with your intentions.
Another option is to grant authorized access. This will allow you to retain ownership of the money while giving someone else the ability to help manage the account.
Granting a power of attorney is also worth considering. This legal arrangement lets someone make decisions for you. It can prevent disagreements or legal disputes among family members who care about your well-being.
If you are diagnosed with Alzheimer’s or dementia, consider setting up these financial safeguards as early as possible.
Add a Trusted Contact to Your Financial Accounts
By designating a trusted contact, you give your financial institution permission to contact them on your behalf if they have financial or medical concerns. Examples might include:
Financial fraud or abuse: Concerns that someone is taking advantage of you or coercing you into financial actions not in your best interest.
Diminished capacity: If you show signs of cognitive decline and your financial representative believes you are unable to act responsibly on your own behalf.
Medical emergency at the office: If you have a medical emergency and a loved one needs to be notified.
Trusted contacts do not have access to transact on accounts; they cannot deposit or withdraw money. Note that the ability to name a trusted contact may not be available for all types of financial accounts.
Bottom Line
Managing your finances as you age doesn't have to be overwhelming. To stay financially secure, review your finances regularly. Put safeguards in place to keep control of your money. Remember, it's okay to ask for assistance and to put measures in place that protect your interests.
Sources:
https://www.fidelity.com/learning-center/life-events/money-management-as-you-age/
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.