Long-term Planning: Important Steps You Can Take Today

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It was Benjamin Franklin who said, “If you fail to plan, you plan to fail” and it’s as true now as it was in the 1700s – maybe even more so, because today we have so much more to plan for. As we age, long-term planning is crucial to ensure our financial security, home and healthcare needs and overall well-being in our later years.

Planning today empowers you to make thoughtful decisions now that not only shape the life you want but also ease the potential burdens on those who care about you.

Here are some essential tips to help you create long-term plans in six key areas:

1. Financial Planning

  • Create or Update a Retirement Budget: Review your current income sources (pensions, Social Security, savings, etc.) and expected expenses. Remember to include healthcare, housing, daily living costs, and entertainment.
  • Maximize Social Security: Understand when to start claiming Social Security to maximize your benefits. Delaying claims past full retirement age can increase monthly payments.
  • Consider Long-Term Care Insurance: According to the U.S. Department of Health and Humana Services, individuals over 65 have a nearly 70% chance of needing long-term care services or support. Those costs can be a significant burden, so it’s important to evaluate insurance options that cover nursing home care, assisted living, or in-home care.
  • Minimize Debt: Prioritize paying off high-interest debts to reduce financial strain during retirement.
  • Estate Planning: Ensure you have an updated will, trust, or power of attorney. Consider working with a financial advisor or estate planner to handle inheritance and minimize tax implications.

2. Healthcare and Medical Planning

  • Medicare and Supplemental Insurance: Review the ABCDs of Medicare coverage and consider additional supplemental insurance (Medigap or Medicare Advantage) to cover out-of-pocket medical expenses.
  • Advance Healthcare Directives: Complete important legal documents like a living will or healthcare power of attorney to ensure your medical preferences are respected.
  • Regular Health Screenings: Keep up with preventive care and regular health screenings to catch any issues early, helping you maintain independence and quality of life.
  • Chronic Care Management: If managing chronic conditions, plan for ongoing care needs by coordinating with healthcare providers and ensuring caregivers are available if needed.

3. Housing and Living Arrangements

  • Aging in Place: Modify your current home to support aging in place. This might include adding ramps, widening doorways, or installing grab bars in the bathroom.
  • Consider Senior Living Options: Research assisted living communities, independent senior housing, or continuing care retirement communities. Choose options that offer the level of support you may need later.
  • Get help with downsizing and relocation: Whether you decide to move into a senior housing community or just a smaller home, the Caring Transitions of Redlands team is ready to help. Our staff are experts in decluttering, selling or donating any items you no longer need or want and relocating everything you do want to move into your new home.
  • Discuss Caregiving Needs with Family: Have open conversations with family members about your future caregiving needs. Identify potential caregivers or explore professional caregiving services.

4. Legal and Documentation

  • Organize Important Documents: Make sure all your important documents (financial statements, medical records, property deeds, insurance policies) are up-to-date and stored securely but accessible to trusted family members.
  • Power of Attorney: Designate a trusted individual with durable power of attorney to make financial and legal decisions on your behalf if you become incapacitated.

5. Stay Engaged and Active

  • Social Connections: Social connection is a key to longevity. Maintain strong social ties and stay involved in your community. Consider joining senior groups or participating in activities you enjoy.
  • Mental Health: Engage in activities that stimulate cognitive function like puzzles, games, or learning new skills. Address feelings of isolation or loneliness through therapy or counseling if needed.
  • Physical Health: Stay active with exercises suited to your abilities, such as walking, swimming, or yoga. This helps maintain mobility and overall well-being.

6. Tax and Legal Implications

  • Review Tax Strategies: Speak with a tax professional about tax-efficient strategies for withdrawing from retirement accounts, gifting to family members, or charitable giving.
  • Trust and Will Updates: Regularly update your will, trust, or other legal arrangements as life circumstances change. Make sure beneficiaries and executors are correctly named.
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