The start of a new year provides the perfect opportunity to review and optimize financial strategies for elderly loved ones. With fresh tax documents arriving and healthcare plans renewing, January creates a natural checkpoint to evaluate financial health and make necessary adjustments for the months ahead. Here are key tools and tactics to keep your loved one’s finances on track in 2025.
Review and Simplify Accounts
Consolidate accounts to minimize confusion and reduce the risk of overlooked payments or missed income. Use this opportunity to ensure automatic payments are set up for recurring expenses, such as assisted living fees or medical bills.
Leverage Budgeting Tools
Online platforms like Mint or You Need a Budget (YNAB) offer user-friendly ways to track expenses and identify key areas for adjustment. These tools are especially helpful for managing fixed incomes like Social Security or retirement savings.
Monitor for Fraud and Identity Theft
Seniors are often targeted by scammers. Regularly review bank statements and set up alerts for unusual activity. Consider identity protection services to provide an extra layer of security.
Plan for Future Needs
Collaborate with financial advisors to revisit estate plans, long-term care insurance policies, and investment portfolios. Ensure beneficiaries are up to date and discuss any potential changes to care costs.
Communicate Regularly
Schedule regular check-ins with your loved one and other family members involved in their care. Transparent communication ensures everyone stays informed and aligned on financial goals.
By incorporating these strategies, you can provide peace of mind for your loved one and ensure their financial health remains strong throughout the year. A little planning now can lead to a more secure and stress-free future for everyone involved.