Tips For Safeguarding Your Finances In Your Later Years

Finding ways to safeguard your finances needs to be your priority, whatever your age. As you get older, extra care needs to be taken.

 

We have all heard the nightmare stories about elderly people being scammed online and off. In some cases, they have lost their life savings because of the malicious scams of others. We all assume the same will never happen to us, but how do we know?

 

As we get older, we can become forgetful, more vulnerable, and perhaps too trusting of people who promise to care for us. Any one of us could fall prey to one con or another unless precautions are taken.

 

As we get older, we can also lose some of our financial prowess. Age-related conditions that affect our memory and reasoning could affect the way we deal with the money in our bank accounts.

 

So, care needs to be taken. We need to do what we can to protect both ourselves and our money. We need to take the necessary steps to minimize risk, and for the context of this article, we will discuss some of them below.

 

#1: Be careful who you trust

 

If somebody asks you for money, you have every right to say no.

 

This includes the people in your family, the people who might act as advisors for you (be they family members or not), and strangers who might turn up on your door or ring your phone with financial requests and offers. Email scams are also common, even though they appear genuine. Check the previous link and look for more advice online for what to look out for.

 

In such situations, think carefully before giving your money away. When it comes to your family, there might be good intentions behind a request, so use your best judgment, and only support somebody if you do have the finances in your account to look after your own interests.

If you need to borrow funds, you can find a trustworthy money lending app with a good reputation. Pigeon Loans helps borrowers get money from those they trust. Pigeon provides the tools that remove the awkwardness of borrowing money from family and friends. You can easily set up the terms of the loan agreement, and the repayment plan.

When it comes to anybody else – neighbors, cold callers, etc. – have your guard up. You aren’t responsible for their financial wellbeing. And if you find yourself the victim of a blackmail attempt or some other method of coercion, speak to somebody you know for help, or contact the police.

 

#2: Seek legal help

 

If you do lose money, perhaps because you have become the victim of fraud or because you have been manipulated into giving away your money, don’t assume all is lost.

 

Some law firms are well-versed in such matters and can work to recover any money you have given away. One such law firm in Oklahoma, Hasbrook & Hasbrook, has recovered $2.2 million in money lost in undue influence claims, so you can have the peace of mind that it is possible return to secure financial footing, even if you have been duped. You should also contact the police if you have become a victim of a financial crime, or if somebody is putting undue pressure on you to give away your money.

 

#3: Secure your money at home

 

If you keep cash at home – and many of us do – don’t leave it lying around.

 

There have been lots of cases where carers have stolen money from the elderly, and there are instances where people have gained access to their neighbor’s properties to steal money. We don’t want to make you paranoid, of course, as most people are trustworthy. However, you can never be too careful. So, if you do have cash at home, put it in a safe or a locked drawer, and don’t give away the safe code or location of your key to others. You might also want to install security cameras in your home, as if money does go missing, you or a family member will be able to play back footage to determine the culprit.

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#4: Manage the money in your possession

 

You will be living on a fixed income when you hit retirement age (unless you take on extra work), so it’s more important than ever to properly manage your money. This means calculating your budget to know what you can and can’t afford, and it means looking for ways to make savings in your everyday life too. You might also want to reconsider your housing situation – some people decide to downsize when they get older for financial and practical reasons – and you might want to step up your health coverage, as you might require extra medical assistance in your senior years.

 

We have discussed all of these points in our money management tips, so have a read and do what is necessary to ensure you can remain financially afloat after retirement.

 

#5: Automate your finances

 

As we get older, our cognitive functions can decline. There is much we can do to maintain good cognitive health, of course, as this article suggests, but in the event that your memory does fade, it is a good idea to automate your finances. This will ensure that nothing is missed if you do become forgetful, and that you won’t get a threatening letter or a late fee demand if you forget to miss a payment.

 

So, speak to your bank about automating your payments, and contact the relevant billing companies to set up direct debits. You might want to have your various income sources directly paid into your bank, such as your pension funds, disability payments (if applicable), and social security payments. And you might want to have your utility, insurance, and rent or mortgage payments set to come out of your bank on a set day each month.

 

By automating your payments, you should find it easier to manage your money, and there will be less need for you to worry that you might have forgotten something. Of course, you should still check your bank statements to make sure that everything is going in and out as desired, and you should contact your bank if there is anything that appears amiss.

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#6: Find a financial advisor

 

Not only will a financial advisor provide advice around matters relating to retirement planning, but they will also give you advice on asset management and estate planning to manage your finances after you have passed away. They will help you to make wise choices so you can enjoy the money you have while you’re alive, and they will help you do what is necessary to ensure your money isn’t mishandled when you have gone. You can learn more here, so have a read of the article, and then seek help from the relevant financial professionals near you.

 

#7: Set up an authorized signer on your bank account

 

An authorized signer has the authority to make deposits and withdrawals on behalf of yourself, and they have the authority to sign checks. They also have the authority to access your bank account information. Needless to say, the authorized signer needs to be somebody you trust, as you don’t want to put your finances at risk. However, if you do find somebody you can trust, there are benefits as you get older. The authorized signer will be able to manage your financial affairs if you become too ill to do so, and they will be able to keep an eye on your account to make sure nothing is amiss. Speak to your bank for more information, and consider who you might choose to be your authorized signer now or in the future.

 

There is a lot to think about, we know, but for the safeguarding of your finances in your later years, it is important for you to do so. Still, seek help if you need it, from your bank, financial advisor, and trusted family members and friends, and check online for other pieces of information that could be useful to you.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/