Making Finances Easier for Older Family Members Jonathan Pond
Making Finances Easier for Older Family Members - Jonathan Pond
With an intention to make things easier for your younger relatives and loved ones, you can complete this checklist of particularly important matters to take care of as you grow older:
1. . Ideally, family members of older and younger generations discuss later-life housing options well before a change is needed. By "housing options," I mean the possibility of having to enter an assisted-living facility or nursing home. If you do not cover this ground before you have to make the decision, you can pretty much be assured that the proposal will be met with some resistance. This is unfair. It sends the child or other concerned family member on a guilt trip when, had the family considered these matters earlier, they could have more rationally talked over prospect going into a nursing home.
Many older homeowners insist on staying put in houses that are too big, too hazardous, and too difficult or costly to maintain. The same can be said of many apartment owners. That's a shame, because there are so many alternatives available for those who want places more than an old home in constant need of repair. An added bonus could be lower housing costs, particularly if your relative moves into smaller quarters.
If the older person in your life resists downsizing because there won't be enough room to house visiting children and grandchildren, remind him or her that after a day of youngsters rampaging through the house, it might be nice to send the visiting family to a hotel for the night.
2. . Make sure your parents keep and maintain the right kind and amount of insurance. Periodically review your parents' insurance policies to make sure the coverage is adequate but not excessive and that the premiums are paid. Many of us have heard reports of unscrupulous insurance agents taking advantage of elders by selling them duplicate coverage or too narrowly defined coverage (cancer or burial insurance, for example). A competent insurance agent is indispensable. Next:
4. . While many retirees enjoy paying attention to their investments, the time may come when they are no longer able to do so. To handle this possibility, ask the relative to request that duplicate copies of investment statements go to you—even if the relative uses an adviser—so that you can monitor what's going on with your loved one's nest egg. In addition, encourage your parents to contact you any time anyone asks them to make an investment they don't understand.
5. Day-to-day money concerns. Be alert for situations causing or revealing problems. A sudden change in spending habits, late filing of , or late payment of bills may indicate that a parent or other relative is simply unable to maintain his or her day-to-day finances. That doesn't necessarily mean that a parent is having trouble making ends meet, but the assistance of a child or other family members is probably necessary. This may involve taking over the chores of paying bills and making sure household and income records are organized.
All the information presented on AARP.org is for educational and resource purposes only. We suggest that you consult with your financial or tax adviser with regard to your individual situation. Use of the information contained in this website is at the sole choice and risk of the reader. You may also like: Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Making Finances Easier for Older Family Members
Helping From Afar
If your parents or others who depend on your good judgment live far away, most cities have agencies to help meet the basic needs of older citizens, from home health care to companionship and escort services.There are more than 600 Area Agencies on Aging (AAAs), all of which help older adults and family members choose the homes, community-based services, and living arrangements that suit them best. For more information on how the AAAs can help, contact the National , 1730 Rhode Island Avenue, N.W., Suite 1200, Washington, D.C. 20036. The phone number is 202-872-0888. Most older people say to their family members, "We don't want to be a burden on you." However, the truth is that while most won't need financial support, as most people age, they become more dependent on their children, close relatives, or acquaintances to help them manage.With an intention to make things easier for your younger relatives and loved ones, you can complete this checklist of particularly important matters to take care of as you grow older:
1. . Ideally, family members of older and younger generations discuss later-life housing options well before a change is needed. By "housing options," I mean the possibility of having to enter an assisted-living facility or nursing home. If you do not cover this ground before you have to make the decision, you can pretty much be assured that the proposal will be met with some resistance. This is unfair. It sends the child or other concerned family member on a guilt trip when, had the family considered these matters earlier, they could have more rationally talked over prospect going into a nursing home.
Many older homeowners insist on staying put in houses that are too big, too hazardous, and too difficult or costly to maintain. The same can be said of many apartment owners. That's a shame, because there are so many alternatives available for those who want places more than an old home in constant need of repair. An added bonus could be lower housing costs, particularly if your relative moves into smaller quarters.
If the older person in your life resists downsizing because there won't be enough room to house visiting children and grandchildren, remind him or her that after a day of youngsters rampaging through the house, it might be nice to send the visiting family to a hotel for the night.
2. . Make sure your parents keep and maintain the right kind and amount of insurance. Periodically review your parents' insurance policies to make sure the coverage is adequate but not excessive and that the premiums are paid. Many of us have heard reports of unscrupulous insurance agents taking advantage of elders by selling them duplicate coverage or too narrowly defined coverage (cancer or burial insurance, for example). A competent insurance agent is indispensable. Next:
Related
3. . Some older people are reticent to ask for the care they deserve and are entitled to. It's easy to get lost in or confused by the Medicare bureaucracy. A younger-generation family member can intervene to make sure loved ones receive appropriate health care and do not overpay for health or out-of-pocket medical expenses. Be available to help your family member deal with routine or non-routine medical needs.4. . While many retirees enjoy paying attention to their investments, the time may come when they are no longer able to do so. To handle this possibility, ask the relative to request that duplicate copies of investment statements go to you—even if the relative uses an adviser—so that you can monitor what's going on with your loved one's nest egg. In addition, encourage your parents to contact you any time anyone asks them to make an investment they don't understand.
5. Day-to-day money concerns. Be alert for situations causing or revealing problems. A sudden change in spending habits, late filing of , or late payment of bills may indicate that a parent or other relative is simply unable to maintain his or her day-to-day finances. That doesn't necessarily mean that a parent is having trouble making ends meet, but the assistance of a child or other family members is probably necessary. This may involve taking over the chores of paying bills and making sure household and income records are organized.
All the information presented on AARP.org is for educational and resource purposes only. We suggest that you consult with your financial or tax adviser with regard to your individual situation. Use of the information contained in this website is at the sole choice and risk of the reader. You may also like: Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures