Smart Financial Tactics for Seniors

Older adults need to be careful about how they spend and invest their money. Most retired adults are on fixed incomes and are subject to various economic forces like inflation, housing availability, and the rising cost of medical care. Luckily, there are numerous ways that seniors can get the most out of their assets and create financial security well into the sunset years. Here are some of the top money moves for those 65 and older.

Downsize

Downsizing your lifestyle, especially the size of your living space, is a powerful way to reduce living expenses and add an extra layer of security to the future by protecting wealth. For most homeowners who no longer have children to raise, the transition into a smaller house is a logical option. It’s a good idea to work with a real estate agent who specializes in helping older owners find cost-efficient small homes and sell the ones they've lived in for many years.

Turn Unneeded Life Insurance Policies to Ready Cash

It's easy to overlook intangibles. Many senior citizens own life insurance policies that they no longer need or want. In some cases, people have long since forgotten about taking out the coverage and ignore the monthly premium deductions from their bank accounts. Unwanted insurance coverage can provide holders with a quick supply of funds if they know how to sell the policies to a third-party buyer.

Fortunately, you can find out all the details about how to convert a life policy into cash by reviewing a simple guide from Policy Bank. Who can take advantage of these kinds of deals? Anyone can, if they own life insurance with a face value greater than $100K, have reached the age of 65, and don't feel they need the insurance any longer. Once they decide to sell, they can get money in a matter of a few days. Third-party buyers offer quotes to those who are ready to sell their life insurance policies for cash directly.

Monetize Your Clutter

Most seniors face the prospect of dealing with clutter. That's the large collection of personal belongings that have built up over a lifetime. In some cases, the task can be a major one that takes months to complete. However of all the daily needs of seniors, living in a more minimalist fashion deserves a top bill since less physical clutter can ease the aging mind. Regardless of how daunting your decluttering chore is, view the process to monetize what you own. Categorize all the items carefully, making sure to recycle, give away, sell, dispose of, or keep each one. Keep detailed records for tax purposes, especially if charitable organizations give you receipts for items you donate to them.

Restructure & Review All Retirement Accounts

Sit down with your accountant and review all IRA-type accounts. Rebalance portfolios, restructure where needed, and sell assets you no longer need, like life insurance policies, second cars, coin collections, stored valuables, etc. Be certain to record all changes to accounts for tax filing purposes, and so you'll know the status of each account and asset category.

Make a Will

Without getting into complex specifics, it's worth the small effort to craft a formal last will & testament. There are two ways to approach the task. First, order a DIY will kit online for a few dollars, fill out all the pages according to the general instructions, and place the document and a copy in safe places where your loved ones will find them should you die. The other method is to hire a lawyer who can draw up a formal will for you. The latter tactic costs a few hundred dollars, but you won't have to worry about anyone seriously contesting the will or nullifying it in any way. For seniors who own a little or a lot, a will spells out their intentions about what to do with assets like vehicles, home furnishings, bank accounts, clothing, and other personal property.

Invest in a Comprehensive Medical Exam

Paying for an in-depth health evaluation is about more than physical well-being; it's about saving money in the long run on healthcare. Keep in mind that even the top-rated medical insurers only cover standard check-ups on an annual basis. Rarely do they pay for anything more than traditional examinations. That's why it's important to speak with your doctor and find out if a full-scale wellness screening is right for you. Most such examinations include a visit with a healthcare professional, multiple blood tests, and other detailed diagnostic procedures. The primary advantage of investing in a comprehensive check-up is prevention. In so many cases, early detection of ailments and diseases makes it possible for physicians to successfully treat patients before small problems become serious ones.