Planning and preparation provide the power to control and shape your future. Whether you are a senior or have a senior loved one approaching retirement, this exciting life stage is full of possibilities, but planning is crucial to make the most of them. Ultimately, sooner is better than later, especially when it comes to financial planning for seniors. This preparation is essential to ensure seniors maintain financial security and the sense of fulfillment they and their loved ones deserve.
At Marcia L. Campbell CPA, our passion is providing private fiduciary services to help seniors and their families make the most of their golden years. Read our blog to learn the power of financial planning for aging loved ones!
The Power of Financial Planning for Seniors in 2024 with a Private Fiduciary
Financial planning for elderly parents supplies them with the power to control their future and live it up in their golden years! Let’s get into the benefits of financial planning with the help of California private professional fiduciary services.
Estate Planning
A critical component of financial planning for seniors is estate planning. Whether you are helping a senior loved one or are a senior yourself, estate planning is a vital first step, just like creating a will or trust with the help of an attorney. But it’s only the beginning.
It is vital to ensure that your parents have an advance care directive and financial power of attorney in place. If they elect to set up a trust or assign a power of attorney, we also recommend working closely with them to choose a dependable agent:
- An advanced care directive is a document that outlines medical wishes when someone is physically or mentally unable to do so for themselves. This document is particularly important for making medical decisions for aging parents.
- A financial power of attorney (POA) assigns a person or persons to make financial decisions for someone when they are unable to make them on their own. The scope of power this document provides can vary depending on the situation, but a POA is crucial to accessing their funds and also making daily or major financial transactions, like banking, paying bills, handling tax issues, managing government benefits like Social Security and Medicare, and addressing beneficiary transactions.
- A trustee will be in charge of managing and distributing all assets and funds that a trust holds. After a senior passes away, the trustee will be responsible for ensuring that the trust remains profitable and inheritance is distributed. Should they set up a trust while they are alive, a trustee can help with budgeting or use the funds and assets in the trust to assist with paying bills and other daily money management needs.
The person you transfer any of these duties to must be trustworthy and have considerable financial expertise to ensure financial security through the golden years.
Enlisting the help of private professional fiduciary services is nearly always the best option in these situations. A fiduciary has the experience, skill, and a legal obligation to act in the best interest of the person they represent.
By working with an objective third party, you can rest assured that complex family dynamics won’t muddy the waters
Related Article: The Benefits of Hiring a Private Fiduciary
Preparing for Healthcare Costs
Another important aspect of financial planning for seniors is helping them prepare for healthcare costs. It is difficult to forecast what their costs will be. An aging senior’s healthcare expenses could be minimal—or substantial.
It is important to plan for this as soon as possible. According to LongTermCare.gov, nearly 70% of Americans turning 65 need some form of long-term care service for an average of three years, costing an average of $138,000.
This medical expense could severely drain savings and derail post-retirement plans, so it is crucial to get insurance. Another benefit of working with a personal fiduciary is that they can advise you in choosing a provider based on your or your loved one’s needs.
Related Article: Reasons for a Private Fiduciary in California
Talking Through Their Financial Future
Working with a professional financial planner for seniors will also require having conversations and talking through what the future might look like. These conversations are essential to your or your senior loved one’s future financial security.
For children, you need to ensure your parents are of sound mind and body to have these conversations. For seniors, it is just as important to have these discussions with the fiduciary professional helping you through this season of life.
These conversations should revolve around topics like retirement goals, how these goals can be achieved, and current assets and debts. Bringing in an impartial moderator to transition into this phase also protects them from scams and fraud.
“Too often, we see parents and children avoiding this conversation only to assign someone to care for the senior’s needs who is uninvested or uncomfortable doing so, which has severe consequences on their well-being. Personal fiduciary services are an invaluable resource because a qualified professional will always be as invested in their client’s well-being and future as they are, so the senior and their family can make the most of their retirement together.”
– Marcia L. Campbell, CPA for Seniors
Related Article: How to Prepare for Taking Over Elderly Parents’ Finances
Do You or a Loved One Need Financial Planning for Seniors? Hire a Fiduciary Professional Today!
If you are a senior or have an aging senior loved one, financial planning with the help of a CPA fiduciary is invaluable. Retirement is an exciting life chapter, but preparation is crucial to ensure you or your loved one can make the most of it!
Visit our Contact Us page to schedule a consultation with a professional fiduciary in California for financial planning for seniors and ongoing support!
