Handling Money and Bills in Retirement - How to Find Help

Within a decade, the oldest Baby Boomers will be turning 85, and approximately half of them can expect to be living alone.  In fact, many of them are already living alone because, over the years, they became divorced, widowed, or they never married or found a life partner.  While some Boomers have adult children or other family members who can help with their finances in a crisis, many people have no one in their family they can comfortably trust to handle their money for them, and do it responsibly, during an emergency.  Some people may only need temporary assistance, such as while they are recovering from a major illness, accident, or surgery.  Others may need the help permanently, especially if they begin to develop cognitive problems. 

Even before the Boomers hit their 80s, many of them may have occasions when they need someone to pay their bills or handle their finances for them. Perhaps they are taking an extended trip and want to make sure their bills are paid while they are gone.  They may also need help if they are getting surgery or going through chemotherapy and expect a lengthy rehabilitation process.  In fact, there are times when almost anyone may need a little help, and for people living alone without close relatives they can trust, this can present a dilemma.  Who can handle their finances when they cannot?

Protect Yourself from Elder Financial Abuse

Your first concern when allowing someone else to help you financially should be to protect yourself from the risk of elder financial abuse.  You do not want to put yourself in a situation which allows someone else to tap into your savings accounts, retirement accounts, or other sources of income and "help themselves" to some of your assets.  If you have been diagnosed with cognitive decline, this is an especially big risk.  It is very important that any relatives you trust with your money are reliable and responsible and, when possible, that you have a lawyer, accountant, or other professional who can periodically check to make sure no money is being taken from your accounts unnecessarily.  Your lawyer can also advise you on how to set up your accounts in a way which provides maximum financial protection, before you begin to rely on someone else to handle your finances. 

I also strongly urge everyone to read "The Family Guide to Preventing Elder Abuse."  (Ad) It is available in both paperback and Kindle versions and could help save you and your family a lot of heartache.  There are many types of elder abuse ... physical, mental, and financial.  While you want to protect yourself from all three types of abuse, right now we are focusing on the potential for financial abuse, which is more common than many people realize.

Auto Pay Your Bills During Temporary Absences

One way to handle the issue of getting your bills paid when you are just going to be temporarily out-of-town or recovering from an illness, is to set up all your bills on auto pay.  If your Social Security checks, pensions, and other sources of income are also set up to be automatically deposited in the same checking account, this system requires very little supervision on your part, other than occasionally verifying that everything is being paid, and the amount being deposited is adequate to cover all your expenses.  Your income goes into the account, and your bills are paid out of the account.  

Personally, I set up all my bills on auto pay a few years ago, when we needed to move out of our home for six months after extensive water damage.  Our mail service was also disrupted, so it was much easier for me to have our bills paid automatically by our bank.   Among our bills which are automatically paid are our insurance premiums, car payment, utilities, and credit card balances.  My bills are now all emailed to me, so I know how much they are, and the bank also emails me when they pay the bills.  I write these amounts in a ledger, so I can keep track of my monthly expenses and make sure that everything has been paid, so I do not overlook something.  Other than that, there is very little for me to do to handle our bills.  If you think you may need help paying your bills temporarily, and you want to be able to handle things yourself from virtually anyplace in the world, this is a good solution, and is actually much safer than mailing checks.

Get Help from a Family Member to Set Up Auto Pay

If you are nervous about setting up auto payments for your bills, see if you have a trusted friend or family member who can help you get everything set up.  Once the system is working correctly, you should be able to just check your accounts a couple of times a month to reassure yourself that everything is being paid.  When you get someone to help you, it is probably wise NOT to give them your passwords and account log-in information, or you should change your passwords once they have everything set up for you.  In this way, you are removing the temptation for them to dip into your accounts when they think you might not notice.  While you may generally trust this person, it is better to be safe than sorry!

Hire a Bill Payer and a Watchdog

If you believe you really will not be able to pay your bills in the future, even using autopay through your bank, another solution is to hire a bill payer to do the work, and a watchdog to make sure it is being done correctly.  For example, you could hire a bill paying service and then also hire an accountant or lawyer who is willing to make major financial decisions for you, and supervise the bill payer.  In choosing a bill payer service, make sure it is bonded or insured.  You can find a service through the American Association of Daily Money Managers at aadmm.com. You also may want to check out SilverBills, a company which will review your bills and authorize payments for a fee of about $100 a month.  Just remember that you, a lawyer, an accountant, or a relative should also supervise the bill paying service to make sure they are doing things correctly. 

Put Your Assets in a Living Trust with an Institutional Trustee

If you have a lot of assets and no relatives you trust to handle them for you, your best choice may be to set up a living (or revocable) trust and put your assets into it while you are in full control of your mental faculties.  There are trust companies and other financial institutions such as Fidelity, Schwab and Vanguard which can handle your investments for you and pay your bills.  This is an ideal arrangement for someone who is vulnerable, isolated and wealthy.  However, this can cost $4,500 a year or more, in addition to your normal investment costs and fees.  Consequently, this will not work for everyone, and should only be used by those who truly need this level of assistance.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

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If you are interested in learning more about financial planning for retirement, where to retire, Social Security, Medicare, common medical issues as you age, and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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How Seniors Can Downsize Successfully

 Eventually, nearly every senior citizen will need to downsize. They may plan to make this change years in advance, by selling the home where they raised their family, and then purchasing a smaller house or condo. On the other hand, some seniors may be forced to downsize suddenly and unexpectedly.  For example, they may suffer a health event, be diagnosed with a disease which could leave them progressively less able to take care of themselves, or be faced with financial problems which force them to downsize.

Whether you have planned to downsize years in advance, or you suddenly realize it is something you need to do as soon as possible, it is smart to plan as well as you can, so the move goes smoothly.  

You may find it helpful to read "The Art of Happy Moving: How to Declutter, Pack, and Start Over While Maintaining Your Sanity and Finding Happiness."   (Ad) It will help you think carefully about which items to keep and how to let go of things which once brought you joy, but are no longer needed.

This week's guest post will also help you make the necessary changes in an organized manner, easing your stress, and helping you find peace with the decisions you are making. The guest post is below:

What Seniors Need to Know to Downsize Successfully

Downsizing is something many seniors decide to do during retirement. Often, living with less can be both rewarding and more affordable than staying in your current home, but the transition still comes with challenges. Here are things you need to know to ensure your downsizing experience is successful.

Let Go of Belongings in Your Own Time

Getting rid of your belongings can be complicated. Take your time and ease the process with these tips.

●     Understand and accept that you may have complicated emotions about downsizing.

●     Try methods such as the Marie Kondo technique to help you feel at peace as you say goodbye to belongings.

●      Find out where best to donate your previously loved possessions.

Consider the Current Housing Market

Evaluate how the housing market will affect your decision to buy or sell.

●     An appraisal calculator will help you estimate the value of your home.

●     Learn about the process involved in selling your home by discussing it with an experienced Realtor.  You can get suggestions which will help you sell your home, as well as get rid of your unnecessary belongings, by reading an additional article on this blog:   "Tips to Sell Your Home and Downsize or Move to Assisted Living."  It has many practical ideas. 

●     Choose whether you want to rent or own in retirement. There are advantages and disadvantages to either choice.

●     Use sites such as Rent.com to help you find an excellent rental property, if this is what you decide to do.  Consider a wide variety of possible locations and decide whether you want to live in your current neighborhood or move to a new one. If you are moving to a new city or a different part of the country, it could be wise to rent until you are sure where you want to settle permanently.

Decide What Type of Housing You Need

Choosing where to move during retirement is an essential step in the process. Think about why you are moving — and where you plan to go.

●     Contemplate how a move to a smaller home can help you save on expenses.  This could help you decide if a condo, a single family home in a new neighborhood, or a home in an over-55 retirement community is the correct, affordable choice for you.  

●     Understand what assisted and independent living offer, if those options apply.  Many of these communities offer progressive solutions, where you start out in an independent living condo or apartment, and gradually shift to receiving assistance, as needed.   In many cases, that means you can move once and remain in that home for the rest of your life, with help, should you ever need it. 

●     Make a decision on whether you want to live near family.  You may want to live near your grandchildren or your own elderly parents.  However, you also need to decide if you will want to stay in that location if your elderly parents die, or if your adult children are offered a transfer which requires them to move to a new location.  Consider your own needs before you uproot your life to move, if your only reason is to be near your family.  Make sure you are able to visit them, however.  You also do not want to cut yourself off from easy contact with them.

Whatever reason you decide to downsize, doing so successfully can be a challenge. You need to think about what items you will need to get rid of, where to move, and whether to buy or rent in your new location.  There is a lot to consider, so the sooner you start and the more time you allow yourself to make the transition, the easier it will be. Fortunately, these tips offer a great starting point for life’s next adventure.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

To learn more about common medical problems as we age, Medicare, Social Security, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

You are reading form the blog:  http://www.baby-boomer-retirement.com

Photo credit: Pixels

In-Home Caregivers: How to Find and Hire The the Right Caregiver

As we age, the time may come when many of us may need a caregiver, whether it is a temporary arrangement after surgery, or a permanent way to avoid moving into an assisted living facility.  You may need the caregiver for yourself, or for someone in your family.  When the need arises, do you know how to find one and what services they can be expected to handle?  How can you be confident that you can trust the person you hire?  What do you need to do to avoid financial and legal problems?

These are all important questions for patients and their families to ask themselves before hiring a caregiver.  The more you educate yourself and the better you prepare to benefit from the service they provide, the smoother things will go for both the patient and caregiver.

What Services are Performed by Caregivers?

Caregivers can be expected to help a patient with their normal activities of daily living. This can include:

Dressing and bathing
Personal hygiene
Ambulation or transferring between a bed and wheelchair
Help with medications
Shopping and food preparation
Light housekeeping and laundry
Transportation to medical appointments or for personal care

In addition, having a caregiver will reduce your loneliness, because they will have conversations with you and may even play card games or engage in similar activities, all of which can help you postpone dementia.

Best Way to Find a Caregiver

In order to avoid the risks involved in using an unlicensed caregiver, it is best to use an in-home care agency which is licensed in your state.  These companies have to meet their state's requirements regarding training and background checks.  

If possible, it is important for a family member to supervise the hired caregiver, especially at first.  According to inhomecare.com, the average state-mandated training hours for certified caregivers is approximately 75 hours of study.  Some states require even less time; others require more.  Essentially, this means caregivers must participate in only about two weeks of training.  

Before leaving your loved one with a hired caregiver, or hiring one for yourself, you will want to make sure the person fully understands their duties, including how to properly dispense medication, prepare meals the patient will enjoy, manage the transition in and out of chairs and beds, assist in dressing the patient, know how to use common home appliances, and is capable of helping the patient use the toilet, etc.  Do not leave a patient alone with a caregiver until you are completely satisfied that the person is able to handle all their routine duties, as well as any emergencies which could arise.  

In addition, make sure you write down a detailed fact sheet for the caregiver.  It should include instructions on how they can best help the patient, including allergies the patient may have, medications they take, contact numbers for doctors, neighbors and family members, and any other information you think would help the caregiver.   Even if you are the patient, make sure you put all this important information in writing. This will help the caregiver know what to do in the event you are injured or have a medical emergency and are unable to communicate your needs. 

In hiring a caregiver, you will also want to use an agency which has been approved by the American Board of Home Care.  Their goal is to "uphold the trust you have placed in them to review, check, and ensure the best quality of home care providers looking over your family, friends, and patients."

You can contact the American Board of Home Care at:

(877) 436-5259
www.americanboardofhomecare.org

Finally, it wouldn't hurt to do a Google search of your own on the caregiver, to see if this person has been mentioned negatively online or has been accused of any crimes. If you suspect they may have had a past problem, bring up the issue with the agency for an explanation.  You would not want to put yourself or a family member in the care of anyone who could be dangerous, or take financial advantage of a fragile person.

What If a Family Member Offers to be the Caregiver?

In some cases, a member of your family may be the best caregiver.  In this case, it would be smart for both the patient and the family member to sign a Long-term Care Personal Support Services Agreement.  In this way, everyone knows exactly what care will be provided, how often, and during what period of time.  In addition, it also will clarify what financial compensation they may receive, and whether this compensation will come from the person receiving the care, other family members, or the state.

A family member may be uncertain exactly what services they need to provide and how to keep track of everything.  You might find it helpful to get a copy of the "Caregiver's Workbook:  Checklists and Worksheets for Family Caregivers."  (Ad) It could help reduce your stress and keep you organized. 

In many cases, state governments will pay caregivers through Medicaid to assist low-income patients who qualify for in-home care. Having a written agreement will show the state where the money is going and what services are being provided.  The checklists and worksheets mentioned in the book above can also help you prove to Medicaid that you are performing the necessary tasks, and the hours you are working.  

Having a written agreement and agreed compensation will also reduce misunderstandings among heirs over the reduced amount of money which they might inherit, as a result of the financial compensation paid to the caregiver.

What Should be Included in the Agreement for a Family Caregiver?

If a friend or family member is going to be paid to provide the care, everyone should see this as fair and reasonable. In order to do that, the caregiver agreement should include the information listed below.  You may want to consider having an attorney draw up the agreement.

* It should be a written agreement.
* It should cover only services which will be provided after the agreement is written; not services provided in the past.
* It should provide for reasonable compensation which would not be greater than would be charged by a licensed caregiver service in your area.
* It should stipulate the types of care which will be performed and the hours the caregiver will work.
* It should specify who will pay the caregiver and how frequently. 
* It should be flexible and include the statement that the services provided may change as mutually agreed upon by the parties.
* There should be a clause allowing either party to terminate the agreement in writing.
* There should be a "backup" person listed in the event the primary caregiver is temporarily not able to provide their services (for example, if they become ill themselves).
* It should cover any additional factors such as room and board, if the caregiver lives with the patient, income tax withholding, medical insurance for the caregiver, vacation pay, etc.
* It should require a detailed log of duties performed, to justify their salary

Advantages of a Family Caregiver

Although having a family member perform the caregiver duties can cause jealousy and problems with other family members, it can also provide an extra level of care which might not be appropriate if the family hires a professional caregiver.  Some of these extra duties include:

Dealing with household and medical bills
Handling other finances
Going to medical appointments and assisting in making medical decisions

Whether you decide to go with a professional caregiver or have a family member provide that service, it will make life much easier on everyone to know that appropriate care is being provided either temporarily or permanently for yourself or a frail or ill member of your family. 

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

To learn more about common medical problems as we age, Medicare, Social Security, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

You are reading form the blog:  http://www.baby-boomer-retirement.com

Photo credit: Pixabay via Google

Tips to Sell Your Home and Downsize or Move to Assisted Living

During my 30s and 40s, I was a Realtor in Dallas. Often, this involved assisting an older couple in selling their long-time family home before they moved into a retirement community or assisted living.  If they had lived in their family home for a long time, downsizing to a smaller home or apartment in an assisted living community could be extremely challenging.  Often it involved the entire family, including adult children, since an elderly couple can feel overwhelmed with selling the property, making repairs, dealing with movers, and deciding what items they need to sell or give away. 

Fortunately, today there are companies which will help simplify the process. Some of them actually specialize in helping seniors sell their home, declutter, pack up their belongings, and unpack once they have relocated.  

Senior Home Purchase Program

A San Diego based company named the Senior Home Purchase Program (SHPP) was founded with the purpose of giving seniors a simple way to make the transition into senior living.  If they choose to use the SHPP program, the company will make a direct purchase of their home, at a small discount, with no fees payed by the seller.  This means the seller does not have to do any prep work, make repairs, or spend time and money on anything similar.  

Currently, this company only helps seniors in Southern California.  However, seniors may want to get a quote from other companies such as We Buy Ugly Houses or 24 Home Cash Offer to get an "as is" quote on the sale of their home.  There are a variety of similar companies, so if you are interested in getting a cash offer on your home, without repairs or other expenses, you should get quotes from several companies.

If you use one of these wholesale home buying companies, you will have to sell your home at a discount. However, in return, you can set the sale and closing date so it is convenient for you.  You also will not have to make repairs, show your home to strangers, or pay a Realtor commission.  This makes the sale much less stressful for many seniors.

Simply Sell for Easier Home Sales

The same Southern California company that offers the SHPP program also has a program called Simply Sell.  With this program, they sell your home in the traditional way, but they attempt to set a price which will result in a quick sale.  In addition, they do not ask you to pay for any repairs in advance, and they will arrange for someone to help you declutter your home, as well as pack and unpack your belongings.

Once again, this is not the only company which will offer you these services. Any Realtor can arrange to have your home sold "as is" or with a minimal repair allowance.  In addition, many assisted living communities can refer you to someone to help you with the decluttering process.  They will help you go through everything in your home and decide which items you would really like to have with you in your new, smaller residence. Most large moving companies also offer packing and unpacking services.  Of course, it is more complicated to arrange for all these separate services yourself, but the convenience can be worth it.  Hiring people to help you with these services can reduce your stress considerably. 

Rid Yourself of Anything You Do Not Love or Need

Whether you sell your house directly to a company, or use the traditional process, one thing you will want to do is get rid of anything you really do not want or need to have in your new home.  

You may find it helpful to read "The Art of Happy Moving: How to Declutter, Pack, and Start Over While Maintaining Your Sanity and Finding Happiness."  It can help you simplify your move and enjoy it more.  

You may also find it helpful to take the following steps in planning your move: 

Do you have adult children who may want some of your belongings?  This could be a good time to give them the items you have been wanting to pass to them after you are gone, especially if you have some things you do not expect to be using again in the future.

Take a hard look at all the decorative and entertainment items you own.  Do you really need half a dozen vases, an assortment of platters and trays, dozens of framed photographs, cute little collectibles, an assortment of paintings, enough wine glasses to entertain a couple of dozen people, and souvenirs from every trip you have ever taken?  If your children do not want these things, see if you can find another home for items you no longer want or need.  

If you are moving to an assisted living community which will provide your meals, you may not need many dishes or cooking equipment.  If you will have a kitchenette, you may want to keep a few plates, coffee cups, a couple of pots and pans, a toaster, a coffee maker, and anything else you might need to prepare a small meal or snack. Everything else you should pass on to a family member, such as a grandchild getting their first apartment. Whatever cannot be passed on to a family member could be given to a charity.

You may also want to thin out your furniture before you move.  You will want to take your television, favorite comfy chair, bed, dresser, and any other furniture which will help you make the new residence feel homey. You can also take any other items which you love, if there will be space for them, but you do not want to stuff your new place so full of furniture that it becomes difficult for you to move around, especially if you might need to use a walker or wheelchair in the future.  Take what you love and absolutely must have, but leave as much open space in your new home as possible.

Finally, you may also have much less closet space in your new home. Set aside your favorite clothing, purses, and coats which you plan to wear during the last 10 or 15 years of your life.  You can assume that you will occasionally purchase new items of clothing over the years, or receive them as gifts, so you should happily get rid of anything you no longer wear.  Some of us have a hard time letting go of the suits and business attire we wore when we were working, the formal clothing from past special events, and items which are too small for us, but we hope to be able to wear again someday.  Now is the time to let them go.  Just bring what you love and need.

If you find the above tasks too challenging, you may ask an adult child or grandchild to help you.  If that is not possible, hire someone to help you declutter.  A local moving company, or the assisted living place you are moving to, may be able to recommend someone to help you.  

Most importantly, do what you can to make the process as easy on yourself as possible.  You want your new home to be a comfortable and pleasant place, not storage for everything you have ever owned.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.  You will never be contacted for any other reason.
 

To learn more about financial planning, Medicare, Social Security, financial planning, common medical problems as we age, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

You are reading form the blog:  http://www.baby-boomer-retirement.com

Photo credit: Pixabay