SilverSage Management Services had the pleasure of partnering with Jim Vogel at Elderaction for this article. Elderaction was started by Jim and Caroline in Raleigh NC about 5 years ago and is focused on fighting for senior mental health and support. To learn more about their mission please visit their website at www.elderaction.org.
Seniors face many financial issues that can interfere with their quality of life in retirement. Transitioning to a fixed income can be challenging, especially when you’re encountering mounting medical bills and juggling debt. Families often don’t think about these financial issues until they become urgent problems. Whether you have a senior loved one or you’re a senior yourself, it’s important to address financial issues early and plan ahead. Here are some ideas from SilverSage Management Services to help you resolve financial trouble in retirement and manage the stress that comes with it.
Sell the Family Business
If you run a business and you need money to pay for healthcare or cover your living costs in retirement, consider selling your business. Selling your business will also allow you to fully retire and spend time on all the things you’ve been waiting to do in retirement. Just be sure to have a professional business valuation done so you can get the maximum amount for your business. This will provide an objective perspective on the value of your business before you begin entertaining offers from buyers. Getting a professional business valuation will also ensure your asking price is free from any biases that come from your sentimental connection to your business.
Tap Into Your Home Equity
Cashing in your home equity is another way to fund your retirement and care costs. Just make sure you understand the costs and tax implications associated with this move. For example, Consumer Reports explains that you will need to pay closing costs if you take out a new mortgage on your home through cash-out refinancing. While you can roll these closing costs into your new mortgage, it’s important to keep this in mind. Cash-out refinancing could be a good option if interest rates are currently low. You might even be able to lock in a lower rate to reduce your monthly mortgage amount!
Invest in Insurance
If you’re planning well in advance, insurance is a viable option for covering long-term care expenses. For example, if you wind up requiring assisted living care in the future, long-term care insurance will help cover the costs. It’s important to keep in mind that every long-term care insurance policy is different. Make sure the plan you choose includes assisted living coverage and be sure to review the cap on your annual coverage amount.
Access Available Financial Resources
Without assets to sell or long-term care insurance to lean on, seniors can feel like they’re on their own when facing financial hardship. Thankfully, there are many government and private resources available to seniors in difficult financial situations. GoFundMe lists several of these resources:
- Volunteers of America offers a series of service programs to help senior citizens.
- Senior Living is a large database of senior living options.
- Feeding America provides meals to seniors in need.
- Retirement Jobs helps seniors find work and beat ageism in the hiring process.
Self-Care for Relieving Financial Stress
While looking for tangible solutions to deal with financial trouble is the best way to relieve your financial worries, the results aren’t always immediate. Use relaxation techniques to reduce financial stress as you wait for your financial moves to pay off. For example, Verywell Health suggests relaxation techniques like mindfulness and meditation, yoga, exercise, progressive muscle relaxation, and deep breathing.
If financial worries are keeping you up at night, try techniques to improve your sleep quality. For example, limiting screen time before bed will prevent the blue light from disrupting your sleep. It can also be helpful to avoid conversations about money before bed, which can trigger stressful emotions when you should be winding down for sleep.
Dealing with financial hardship in retirement isn’t easy. If possible, try to plan ahead and determine how you’re going to face new expenses in your senior years. Perhaps this means selling your business, refinancing your home, or relying on long-term care insurance. When you have a plan, you’ll be able to avoid financial stress and get the most out of your golden years!
Are you looking for senior care? SilverSage Management Services supports seniors in accessing post-acute and long-term care by partnering with providers and facilities. Get in touch with us today so we can support you!