Perhaps it seems like your senior parents are losing track of their finances. You might be worried about their spending habits or their lack of organization. If your parents need round-the-clock care, you may want to look into an assisted living facility such as Alder Terrace. But if they simply need some help handling their finances, these tips can help you take care of them.
Keep Track of Any Concerning Signs
Have you noticed any signs around your parents’ home indicating that something might be wrong? Maybe you saw stacks of unopened envelopes in their kitchen, even though they used to keep their home quite tidy. Or maybe you’ve noticed packages from strange purchases that they’ve mentioned. If your parents have suddenly become disorganized or adopted odd spending habits, they may not be able to manage their own finances.
Note Any Medical Problems
Have your parents been struggling with medical issues such as blurry vision or memory problems? If so, it’s probably time to step in when it comes to their finances. Credit Karma also suggests checking in with their neighbors and friends if you feel comfortable doing so – they might have noticed concerning behaviors that you wouldn’t see unless you lived with your parents.
Manage Their Finances as a Family
If you plan to take over your parents’ finances for them, you’ll need to have an in-depth conversation with them about it first. You may also need to get your siblings involved. To start this conversation, Principal suggests bringing up a gentler topic first, like their general plans for retirement. Then you can bring up your concerns and broach the idea of taking on certain financial responsibilities for them, such as creating monthly budgets, filing their taxes, paying off their credit card bills on time, or even helping them set up a power of attorney. If they agree to let you manage their finances, you’ll need to get information on their bank accounts as well as any benefits they receive, like Social Security, Medicaid, or Medicare.
Encourage Them to Sell Their Business
If your parents are business owners, and you’ve realized that they’re no longer capable of managing their finances on their own, it’s time to encourage them to sell their business. This may take more than one conversation, so be patient. And before they get ready to officially sell it, make sure to get a professional valuation carried out so that you can accurately determine how much the business is worth. This valuation should include all of the company assets, such as the real estate and inventory.
Of course, it never hurts to talk to a financial advisor in this situation. By talking to an advisor, you can get expert guidance on your parents’ specific situation. Try to seek out an advisor who works with families and offers services geared towards seniors.
Furthermore, if you’re worried about your parents’ overall quality of life, you may want to bring ina part-time caregiver who can assist them with daily tasks. By helping your parents with their finances and hiring a caregiver to lend them a hand during the day, you can enjoy peace of mind.
It can be difficult to talk to your parents about their finances – and taking control of their financial situation for their benefit can be even more complicated. That’s why it’s important to approach this issue with a plan in mind. With these suggestions, you’ll be ready to give your parents the help they need so that they can get their finances under control.
Are you seeking an assisted living facility for your senior loved ones? Find a home for them at Alder Terrace. Fill out the contact form on our website today to schedule a consultation.
As you know, the gig economy has been booming over the past several years. If youre thinking of using your skills to take on a side gig, what should you do with the money youll make?Theres no one right answer for everyone, and the decisions you make should be based on your individual situation. And of course, you may simply need the extra income to support your lifestyle and pay the bills. But if you already have your cash flow in good shape, and you have some freedom with your gig money, consider these suggestions: Contribute more to your IRA. If you couldnt afford to contribute the maximum amount to your IRA, you may find it easier to do so when you have additional money coming in from a side gig. For the 2023 tax year, you can put in up to $6,500 to a traditional or Roth IRA, or $7,500 if youre 50 or older. (Starting in 2024, this extra $1,000 catch-up contribution amount may be indexed for inflation.) The amount you can contribute to a Roth IRA is reduced, and eventually eliminated, at certain income levels. Look for new investment opportunities. If youre already maxing out your IRA, you might be able to find other investment possibilities for your side gig money. For example, if you have young children, perhaps you could use some of the money to invest in a 529 education savings plan. A 529 plan offers potential tax advantages and can be used for college, qualified trade school programs, and possibly some K-12 expenses. Please keep in mind that potential tax advantages will vary from state to state. Build an emergency fund. Life is full of unexpected events and some can be quite expensive. What if you needed a major car repair or required a medical procedure that wasnt totally covered by your health insurance? Would you have the cash available to pay these bills? If not, would you be forced to dip into your IRA or 401(k)? This might not be a good move, as it could incur taxes and penalties, and deprive you of resources you might eventually need for retirement. Thats why you might want to use your gig earnings to help fund an emergency fund containing several months worth of living expenses, with the money kept in a liquid, low-risk account. To avoid being tempted to dip into your emergency fund, you may want to keep it separate from your daily spending accounts. Pay down debts. Most of us will always carry some debts, but we can usually find ways to include the bigger ones mortgage, car payments and so on into our monthly budgets. Its often the smaller debt payments, frequently associated with high-interest-rate credit cards, that cause us the most trouble, in terms of affecting our cash flow. If you can use some of your side gig money to pay down these types of debts, you could possibly ease some of the financial stress you might be feeling. And instead of directing money to pay for things you purchased in the past, you could use the funds to invest for your future.As weve seen, your side gig money could open several promising windows of opportunity so take a look through all of them. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL firstname.lastname@example.org This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC
Its been a bumpy year for the financial markets which means that some of your investments may have underperformed or lost value. Can you use these losses to your advantage?Its possible. If you have some investments that have lost value, you could sell them to offset taxable capital gains from other investments. If your losses exceed gains for the year, you could use the remaining losses to offset up to $3,000 of ordinary income. And any amount over $3,000 can be carried forward to offset gains in future years. This tax-loss harvesting can be advantageous if you plan to sell investments that youve held in taxable accounts for years and that have grown significantly in value. And you might receive some gains even if you take no action yourself. For example, when you own mutual funds, the fund manager can decide to sell stocks or other investments within the funds portfolio and then pay you a portion of the proceeds. These payments, known as capital gains distributions, are taxable to you whether you take them as cash or reinvest them back into the fund. Still, despite the possible tax benefits of selling investments whose price has fallen, you need to consider carefully whether such a move is in your best interest. If an investment has a clear place in your holdings, and it offers good business fundamentals and favorable prospects, you might not want to sell it just because its value has dropped. On the other hand, if the investments youre thinking of selling are quite similar to others you own, it might make sense to sell, take the tax loss and then use the proceeds of the sale to purchase new investments that can help fill any gaps in your portfolio. If you do sell an investment and reinvest the funds, youll want to be sure your new investment is different in nature from the one you sold. Otherwise, you could risk triggering the wash sale rule, which states that if you sell an investment at a loss and buy the same or a substantially identical investment within 30 days before or after the sale, the loss is generally disallowed for income tax purposes.Heres one more point to keep in mind about tax-loss harvesting: Youll need to take into account just how long youve held the investments youre considering selling. Thats because long-term losses are first applied against long-term gains, while short-term losses are first applied against short-term gains. (Long-term is defined as more than a year; short-term is one year or less.) If you have excess losses in one category, you can then apply them to gains of either type. Long-term capital gains are taxed at 0%, 15% or 20%, depending on your income, while short-term gains are taxed at your ordinary income tax rate. So, from a tax perspective, taking short-term losses could provide greater benefits if your tax rate is higher than the highest capital gains rate.Youll want to contact your tax advisor to determine whether tax-loss harvesting is appropriate for your situation and youll need to do it soon because the deadline is Dec. 31. But whether you pursue this technique this year or not, you may want to keep it in mind for the future because youll always have investment tax issues to consider. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL email@example.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.Edward Jones, Member SIPC
As you go through life, youll have various financial goals and to achieve them, youll need to invest. But just recognizing the need to invest is not as useful as matching specific types of accounts or investments with specific goals. How can you make these connections?Lets look at some common goals and how they could possibly be met with appropriate accounts and investments: Saving for a down payment on a house When youre saving for a down payment, you want a certain amount of money available at a certain time so, for this goal, you wont want to take too much risk. Consequently, you might consider investing in certificates of deposit (CDs), which will pay you regular interest payments and return your principal when the CDs mature. CDs are issued in a range of maturities, from one month to 10 years. Other vehicles you might consider are money market accounts or other cash equivalents. Saving for a childs education If you have children, and youd like to help them pay for some form of higher education, you may want to consider a 529 education savings plan. Any earnings growth in a 529 plan is federally tax free, provided the withdrawals are used for qualified education expenses, and you may also receive state tax benefits. A 529 plan can be used for college, approved trade school programs, student loan repayments and some K-12 costs. And if the child youve named as a beneficiary chooses not to continue their education, and doesnt need the money in a 529 plan, you can generally switch beneficiaries to another immediate family member. Saving for retirement This is the one goal that will remain consistent throughout your working years after all, you could spend two or even three decades in retirement, so youll need to accumulate as many financial resources as you can to pay for those years. Fortunately, you likely have access to several good retirement-savings vehicles. If you work for a business, you might have a 401(k) plan, which offers you the chance to put away money on a tax-deferred basis. (If you have a Roth option in your 401(k), your withdrawals can be tax free, although, unlike a traditional 401(k), your contributions wont lower your taxable income.) If you work for a public school or a nonprofit organization, you may be able to participate in a 403(b) plan, which is quite similar to a 401(k), and the same is true if you work for a state or local government, where you might have a 457(b) plan. And even if you invest in any of these plans, you can probably also contribute to an IRA, which gives you another chance to invest on a tax-deferred basis (or tax-free basis, if youre eligible for a Roth IRA). Try to take full advantage of whatever retirement plans are available to you.Here's one final point to keep in mind: While some investments and accounts are appropriate for certain goals, they may not necessarily be suitable for your individual situation so keep all your options in mind and take the steps that are right for you. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL firstname.lastname@example.org This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC
Alder Terrace Gardens offers around the clock care for seniors seeking to maintain their independence, but who still require a little help with the necessities of life. Our mission is to provide residents with a home-like atmosphere that brings a sense of belonging, community, and purpose. From our home-cooked meals, to our weekly entertainment and rejuvenating Wellness and Mobility Center, we strive to provide excellent service and supportive care!