You’ve spent years working hard and saving for retirement, and hopefully you will entire retirement on solid financial footing. But in life, there is always risk, even when you’re relatively comfortable. One surprising source of risk is … you! As we get older, many of us tend to become forgetful or develop mental or physical disorders. These situations can leave room for con artists to wiggle their way into your life, or you might simply make some financial mistakes on your own.
These situations can happen to anyone, often before they’re even aware of what is happening to them. That’s why we advise safeguarding your finances now, as you plan for retirement, rather than trying to wait until later when dementia, illness, or some other calamity has already befallen you.
Designate a power of attorney. In the event that you’re ever unable to manage your money, either due to mental or physical impairment, this person can step in to perform important tasks for you. It’s important to designate this person now, because in the event of a serious illness or accident you might not be able to do so later.
Choose a responsible adult child or trusted friend, and make sure you talk to them about your long-term financial plans. This person should be familiar with your finances as well as your personal physician.
Streamline your financial life. You might currently keep your assets spread across multiple accounts, according to your risk tolerance and desire for growth. But after you enter retirement, and especially as you grow older, you might prefer to consolidate everything into one manageable account. Taking this step can simplify your life, and make it easier to notice if something goes awry with your plans.
Get notified of problems immediately. Ask your financial institutions (banks, credit card companies, and so on) if they offer email alerts in the event of large transactions. Have these alerts sent to both yourself and your power of attorney, so that you will be quickly notified of any potential problems.
Meet with a financial advisor regularly. Regular meetings with your financial advisor can help to keep your retirement plans on track. Call us to schedule an appointment, and we can discuss ways to address your finances throughout your retirement years.
Portions of this article have been excerpted from “A Social Security Strategy That Pays Off Big, Especially for Couples” by Liz Weston, www.msn.com. Liz Weston is not affiliated with LPL Financial.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.