April is Financial Literacy Month, an excellent time for seniors to brush up on their financial skills. Retirement can be a time of financial stress, especially if you don’t have a solid plan. But by taking a few simple measures, you can put yourself in a better position to manage your money. FirstLantic provides five steps that you can follow.
- Review Your Retirement Savings
One of the most important things seniors can do during Financial Literacy Month is to review their retirement plans. Look at your 401(k) or IRA and make sure you’re on track to meet your goals. If you’re not, consider increasing your contributions or finding ways to save more money. It’s also an excellent time to ensure your investments are diversified and aligned with your risk tolerance.
- Create a Budget
Budgeting is essential as it’s crucial to live within your means. If you don’t have a budget, look closely at your income and expenses, and create a spending strategy that works for you. Ensure you’re accounting for all your expenditures, including healthcare costs, and have a plan for emergencies.
- Get Help from an Advisor
If you don’t already have a financial planner and are feeling overwhelmed or unsure, consider seeking help from an expert. They can guide investments, retirement planning, and other financial matters like estate planning. Look for an advisor who specializes in working with seniors, and make sure you understand how they charge for their services. If you can’t afford to pay, many states also offer free financial counseling services for older adults.
- Protect Yourself from Scams
Unfortunately, scammers often target seniors looking to take advantage. With the Internet, fraudsters have become even more sophisticated, and it’s easy for anyone to get duped. Stay alert for phone calls or emails asking for personal information or money, and never give out your Social Security number or bank account information to someone you don’t know. Don’t click on links from emails you receive, either. If you need clarification on a request, contact your financial institution directly on their main 800 number, usually located on your statement or bank card. Legitimate financial institutions and government agencies will not ask for information without reason, and they typically won’t do so in an unsolicited manner. Always err on the side of caution.
- Consider Downsizing:
If you’re struggling to keep up with expenses in retirement, downsizing can be a smart financial move. Consider moving to a smaller home or apartment that requires less maintenance and is less expensive. You can also generate additional income by renting a room or your house on platforms like Airbnb. You can even consider building an ADU if you have the space and your neighborhood allows it. The cost of building it can be recouped relatively quickly if you are in a desirable area and there is a demand.
In conclusion, Financial Literacy Month is a great opportunity for seniors to take stock of their finances and ensure they’re on track for a comfortable retirement. By reviewing and possibly adjusting your retirement plan, you can take control of your future and enjoy your golden years with peace of mind.
If you or someone you know is interested in home healthcare services in South Florida, FirstLantic can help. We are locally owned and operated, providing our patients with the highest quality in-home care and placement services in Fort Lauderdale (Broward County) and Delray Beach (Palm Beach County) since 2000. Click here to contact us.
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