How Can Seniors Downsize During Retirement?
Apr 10, 2015
Virginia Beach, VA (Law Firm Newswire) April 10, 2015 – During retirement, seniors are typically operating on a much tighter budget than they were during their working years.
This is especially the case when major life events, such as an early retirement or a health problem, have made finances tighter. Downsizing can be an important strategy for making retirement funds stretch farther, and there are a number of different methods.
“It is important for seniors to evaluate their particular financial situation in order to make smart decisions about what should stay and what should be altered,” said Andrew H. Hook, a Virginia elder law attorney with Hook Law Center, located in Virginia Beach and northern Suffolk.
Selling the family home and moving into a smaller one is one of the most common ways to downsize. A smaller home means a lower mortgage payment, lower insurance premiums, reduced taxes and fewer maintenance costs. Some seniors opt for retirement communities, which may provide services like meals, laundry and social activities as part of their cost. Many also have the option to transition to a higher level of care later on. The financial impact can be especially large if a senior’s move relocates him or her to an area with a lower cost of living.
Many seniors can benefit from selling their second car, if they have one, which can provide some immediate cash flow and provide savings on insurance, gas and car maintenance.
Donating to charity is another downsizing option which can be helpful. Donating gently used clothing, furniture and tools can add up to a significant tax deduction. Be sure to keep clear documentation of what was donated.
Finally, seniors should consider which monthly bills they can reduce or eliminate. Land lines, premium cable channels and pricey cell phone plans can often be altered or abandoned
Learn more at http://www.hooklawcenter.com/
Hook Law Center
295 Bendix Road, Suite 170
Virginia Beach, Virginia 23452-1294
5806 Harbour View Blvd.
Suffolk VA 23435
- Many employers provide back-up elder care
Hundreds of New York employers provide back-up elder care, designed to help employees stay at work when an unexpected problem arises with elder care. Employees who have registered for back-up elder care can call a care organization when they face an unexpected interruption in elder care. Within hours, the organization will send a home health […]
- How your life insurance policy can pay for long-term care expenses
A number of companies, such as Life Care Funding, will purchase a senior’s life insurance policy from him or her. In exchange, the company provides a portion of the face value of the policy to individuals facing high long-term care costs. These “life settlement” companies purchase the policy from the policyholder, then continue to pay […]
- Study supports doctor-led approach to end-of-life care planning
The end of a person’s life is a time of intense transition and difficult choices. Although nothing can fully prepare an individual or a family for the gravity of the decisions that need to be made, end-of-life care planning can help ensure that a dying individual’s wishes about his or her care are followed. Traditionally, […]
- The effect of procrastination and debt on retirement planning
The desire to create a comfortable, secure retirement is almost universal. Unfortunately, procrastination and debt can have a devastating, though not irreversible, effect on these efforts. While Americans can now anticipate longer-than-ever retirements with ever-higher costs of care, they tend to be less prepared for retirement than in decades past. Procrastination can affect one’s retirement […]
- Reducing caregiver stress helps prevent elder abuse
Elder abuse has long been associated with the stress caregivers experience when providing care for older loved ones. Reducing caregiver stress is a key factor in preventing the abuse and neglect of elders. As much of health care moves out of hospitals and into homes, caregivers are charged with providing care to increasingly ill loved […]