If you’re in your 50s, it may be time to start planning for your golden years. You may even want to start planning earlier than that if you have serious investments or are considering retiring early. Preparing for the later years ensures that you have everything in place should an emergency happen. If you have a loved one who is reaching their golden years, now’s the time to talk to them about their plans. While some parts of this discussion, such as talking about funeral arrangements, may be uncomfortable, it’s something you need to discuss. If you wait until it’s too late, you may that you don’t really know what your loved one would have wanted.
If you’re reaching your golden years, here are some things to consider. You may also want to start researching now. For example, you can reach out to Reliant Home Care Services today to learn more about in-home care, even if you’re not ready for it just yet.
Financial Planning
One of the first things you will likely think of when it comes to planning for the future is your finances. You want to know when you can retire and what kind of lifestyle you’ll be able to maintain once you do. This may start with looking at savings options such as IRAs and 401(k) plans. Many people start thinking about this aspect of financial planning when they’re in their 30s since the more time they have to put money in, the more they will have.
Others may consider making investments in stocks or bonds. Your loved one may have some real estate investments, or they may have a savings account that has been building up for years. On the other hand, they may not have much of a safety net. In that case, you may want to discuss what resources your loved one will qualify for or will have earned by the time they retire. Will they have to rely only on their social security income? Will they be able to get by with Medicaid/Medicare, or will they need supplemental insurance? It may not be easy to get answers to these questions, but it’s important to at least consider them.
You should also discuss your loved one’s plans for when they retire. Do they want to continue living in their home? This may be the best option financially, especially if they will have paid off their mortgage or be close to paying it off by the time they retire. However, their health could make it difficult. If that’s the case, will you or another family member be able to help them? Will you need to consider in-home care? If your loved one has to move to an assisted living or other care facility, will they have the funds to afford it? It’s important to consider all of this now so there’s a plan in place.
To start this discussion, make a list of your loved one’s investments and income as well as a list of their debt and when that debt will be paid off. This can help you estimate what financial obligations they will have when they retire and what income will offset those obligations.
Healthcare Planning
Speaking of Medicare/Medicaid and insurance, you also need to discuss your loved one’s healthcare plans. This includes more than just their insurance and what they can expect from Medicare. One of the most important parts of planning for your later years is to have a healthcare proxy or healthcare power of attorney in place. These documents give the designated representative the ability to make healthcare decisions for your loved one. Of course, whoever is this designated representative should have in-depth conversations with your loved one to know what they want.
Your loved one may also want to consider official documents such as a Do Not Resuscitate (DNR) document that will ensure that their wishes are carried out even when they’re not able to voice those wishes themselves.
This is also a good time to talk to your family about how you’ll take care of your loved one as they age. Who will be able to help them with upkeep on their home? Who will primarily help them go to doctor’s appointments or run errands if they aren’t able to drive? If your loved one has to move, will they move in with someone, or will they consider assisted living? Will you want in-home care? While you don’t have to make any permanent decisions now, it’s a good idea to discuss these things and have an idea of how things will go.
Legal Planning
Along the same lines, your loved one may also want to designate someone as their general power of attorney. This person will be able to make financial decisions should your loved one be incapacitated. This can be important if your loved one is incapacitated for more than a very short period of time.
Of course, when people think of planning for the future, most people think about writing their will and handling everything that comes with estate planning. This is certainly an important part of preparing for your golden years. You want to make certain everything you’ve worked hard for is distributed the way you want it. If your loved one doesn’t have a will or hasn’t considered how they want their possessions handled after their death, you need to talk about it now. It may not be the most pleasant thing to discuss, but it’s important.
You will want to get a lawyer involved in these discussions, especially once your loved one is ready to put their thoughts in writing. In some cases, a simple will is enough. In other cases, your loved one may want to create a trust to ensure that their money is handled according to their wishes. They may also want to put things such as their real estate into a trust in order to make the probate process easier. By putting assets into a trust and ensuring that all accounts have designated beneficiaries, your loved one can help reduce the amount of stress you and your family will go through following their death.
Tips for Preparing for the Future
If you and your loved ones are ready to start these conversations, here are some tips for preparing for the future:
- Take notes, especially if your loved one is ready to talk specifics. Remember, some of the things discussed today may not be needed or implemented for years.
- Do research. With the internet, it’s very easy to read up on how things like Medicare work. Make certain you’re using authoritative sites, however.
- Reach out to experts. Lawyers, accountants, and other professionals can give you great advice for preparing for the future.
- Don’t put things off. Once your loved one has made a decision you can act on now, don’t wait. Filling out power of attorney paperwork, creating a trust, or having a will drawn up shouldn’t be put off. The last thing you want is for your loved one to be unable to complete these documents due to illness or injury.
- Check in periodically with your loved one. Plans your loved one made five years ago may no longer apply today. They may have changed their mind or have found new options. It’s important for you to know what changes they’ve decided to make.
Reliant is Here for You
If your loved one is considering in-home care, Reliant is here. We can provide regular and respite care, assist with information about caring for your loved one yourself, and even point you towards financial programs. Reach out today to learn more about planning for your loved one’s future.