As you age, visiting the doctor, exercising and watching your diet become important, so that you can live a longer, healthier life. Similarly, taking care of your financial health is essential, so that you can make your money last for your lifetime, especially given the rising costs of healthcare and overall cost of living. According to the Genworth Cost of Care Survey, in 2017, the median monthly rate for a single-occupancy room in a Hawaii assisted-living facility was $4,250, and could range as high as $9,500. Avoid unnecessary stress for you and your family by taking control of your financial well-being, and reviewing your estate and financial plans.
Here are three steps you can take to make your money last throughout your twilight years.
1) Get started now.
Be open and talk with friends, family members and experts familiar with your situation and needs.
Identify the members of your team, such as an estate planning attorney, tax consultant and a professional financial advisor.
2) Understand your situation.
Clarify your goals and needs—either make a plan or reevaluate the one you already have.
Work with a trusted professional advisor who has a holistic approach and will help you develop and implement your plan. Your advisor is the best choice to quarterback your team's efforts.
Review your household budget. What are your monthly income sources? How much are you spending and on what?
3) Make a plan and keep it current.
Review your existing investments–can you adjust your asset mix to generate more income or be less risky?
Your professional financial advisor should include variables in your financial projections, such as inflation and changing risk tolerance. Your advisor can help you develop a plan to anticipate unexpected increases in expenses as they pertain to your health and daily life. How much longer will your money last?
Be proactive with your plan and review it on a periodic basis.
Make time to review your finances often, commit to making adjustments when necessary and enjoy having peace of mind as you live a longer, healthier life.