We tend to accept the fact that we lose some physical strength and agility as we grow older. But most of us refuse to confront the fact that mental acuity will also decline. Unfortunately, this decline may lead some retirees to begin making financial mistakes after age 60 or so. Some mismanage their money, while others fall victim to predators who take advantage of the older population.
As with most things, admitting the problem (or the potential for a future problem) is half the battle. Then, taking the right steps to prevent mistakes can help you ward off financial disasters.
So how do you keep your financial skills sharp as you age?
Exercise. Scientific studies have repeatedly demonstrated a link between daily exercise and improved cognitive functioning. Start fitting exercise into your routine now, during your working years, and continue the habit once you retire. As you grow older, remember to consult with your doctor about the appropriate and safe amount of physical activity for your state of health. Walking, biking, and swimming are good choices for almost everyone.
Simplify your investments. In your younger years, you might have engaged in riskier investment practices to build capital for retirement. But now, it’s easier to make mistakes and you have fewer working years during which you can correct them. As you approach retirement, it might be wise to switch to investment options which carry lower risks.
Make sure that your future income will be dependable. As budgeting and making financial decisions becomes more challenging, the last thing you need is a fluctuating income. Remember to establish a stable stream of income for the future, so that you aren’t forced to make difficult decisions in your old age.
Establish a living trust. A sizable percentage of us will develop dementia or Alzheimer’s, and there is no way to predict who will be affected. In the event that you are ever incapacitated by illness, a living trust transfers control of your assets to a trusted family member or friend whom you have previously designated for the task. The time to choose this person is now, while you’re able to make a sound decision.
Ask for help. Planning for retirement involves numerous complicated decisions. Rather than placing that entire burden upon yourself, give us a call to schedule an appointment. We can help guide you through the maze of retirement planning, so that you can protect your income and safeguard your future.
15163 – 2015/12/10
