As your loved one ages, it is important to plan ahead for their long term care. You want to ensure that your loved one is financially set for their future as well as in the even of an emergency. Recently, I interviewed Jenevieve Lenz, MBA and wealth advisor for First Financial Group. In this blog are some of the helpful tips I learned during the interview.
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Financial Tips for Long Term Care Planning
The first step will be sitting down with your loved one and gathering all the facts and data about their finances. You will also want to figure out what resources are available in your loved ones area. For more information on finding available resources, click HERE.
- What money is coming in? Retirement funds, Pension, etc…
- What money is going out? bills, rent or mortgage, insurance, etc…
- Have all finances reviewed by a professional
- Figure out local resources and what your loved one may qualify for
Preparing Yourself for the Future
In addition to helping your loved one, you will want to prepare for your own future. First, get organized. Taking a financial education seminar is one way that you could help prepare yourself. Also, finding out what your employer may offer.
It may be necessary to fill in any “holes” your employer doesn’t cover. It is also important to save, save, save! You can also have an analysis or your social security and pension done as well.
Common Mistakes to Avoid While Planning for your Future
The biggest mistake people make when planning for their future is not saving enough. Typically, you would want to save 15-20% if at all possible. Of course, this may not be realistic for some. In that case you will want to try to save the most you can.
The second most common mistake is putting all your eggs in one basket, when it comes to your investments. This can be risky and not have a good long term out come. Speaking with a wealth adviser can aid you in identifying where your loses are and ways to optimize your finances. Consultations are usually free. They will comb through and look at everything for you ad help you get organized.