3 Ways for Wealth Management for Retirees

Approaching retirement soon? No worries whether it is retirement or any age related issues like weak memory or mobility challenges, planning wealth through a representative is always good. Here three tips that can manage money at later half of the life:

Be Tax Efficient with Withdrawals

Every penny counts when managing money in retirement and that is especially true when it comes to tax savings. Every retirement account you have may be taxed differently and you will want to be strategic with how and when you take withdrawals from each bucket. A few tips to consider:

Prioritize withdrawals for your required minimum distributions. Stay mindful  of how much you withdraw each year and how the amount impacts your tax bracket.Many financial advisors are well versed in helping clients save money but have less experience with managing and drawing it down in retirement.)

Focus on creating retirement income

If you have been saving money for retirement, you have probably been worried about stashing aside as much as possible and maximizing your returns on investments. Researchers indicate that retirees who have guaranteed their retirement income are happier and less stressed than retirees who make unpredictable withdrawals from their retirement accounts.

Have a plan for out of pocket health expenses

Most important of all , plan out your medical expenses. Fidelity Investments has been tracking retirement health care costs for years. Their most recent retirement health care cost estimate predicts that a 65 year old couple retiring this year will spend $254,000 on health care throughout retirement. This amount will be spent on deductibles, co payments, premiums for supplemental coverage, prescription drugs and other expenses that Medicare doesn’t cover, such as hearing aids and eyeglasses. Therefore, find a way out to look after these expenses as well.

It is always good to hire an expert that specializes in wealth management for retirees and old people. Make sure you choose a certified and trustworthy professional.

3 Reasons you Should Go for Conservatorship in California

Baby boomers and seniors entering into their retirement life often face difficulty managing their personal as well as financial affairs. This often leads to the risk of financial abuse and loss. While it’s best to have someone to manage affairs on your behalf, when you have no one by the side, conservatorship in California is the best course of action.

Conservatorship is a legal concept wherein a guardian or a professional, known as a fiduciary, is appointed by a judge to take care of all the personal and financial affairs while ensuring the health and wellbeing of seniors, disabled, baby boomers, and those who can’t manage their affairs. The person under conservatorship is known as a "conservatee," a term that usually refers to an adult. In this blog, you are going to learn about how conservatorship in California can help you or your loved ones. Let’s find out:

They ensure your well-being

People entering into their retirement life or suffering from a permanent disability face a plethora of troubles when meeting their health needs. They need someone to take care of their meals, medicines, and errands. When you don’t have someone with you, it’s next to impossible. However, a conservatee takes care of your needs in the best possible manner, ensuring that you maintain your optimum health and don’t go through any hassles.

They prevent financial abuse

As more and more people are entering into retirement life, the risk of financial abuse is high. This also stands true for baby boomers. To prevent it, you need expert assistance and no one is better than a fiduciary who specializes in financial matters and knows all the ins and outs of managing financial affairs on your behalf.

Minimize conflicts among family members

If you are entering into old age with significant assets, conflicts among your loved ones can arise. It’s common to see family members sidestepping a fair share among each other. However, if you have a conservatee, you can save those conflicts as they will make sure that each family member has a fair share of your assets in case you wish to offer them.

Bottom Lime

One of the assisted living advice you may hear from eldercare experts is to go for conservatorship in California. This is because of its advantages and how it can prevent financial loss and abuse.

The California Conservatorship for Individuals with Dementia

Seniors with dementia face numerous difficulties when it comes to meeting their basic needs. Family members or relatives are expected to help them meet their needs and take decisions on their behalf. But when no help is available or family members are unable to provide care, getting a conservatorship for someone with dementia is the best course of action.

Conservatorship in California involves a professional known as a conservator with legal rights to make decisions for another adult. Consider it a parent-child relationship where a conservator makes important decisions for someone incapable of making decisions on their own. For someone with dementia, a conservator makes decisions related to their living, medical conditions, and other areas of life. For instance, they can authorize medical treatment for someone with dementia, move them to assisted living for better care, and also manage their finances.

Ideally, a person with early signs of dementia can create a plan while they are competent. The plan can include long-term strategies for their finances or select someone to act as a conservator, which gives the chosen person similar authority as a legal conservator without going through the formal court conservatorship. However, if they don’t create a plan, one of the assisted living advices is to file a conservatorship in California court.

If you need help with filing a conservatorship for someone with dementia, it’s always best to get professional assistance.

Achieve Peace of Mind with a Professional Fiduciary to Handle all Your Financial Affairs

When it comes to handling financial matters, nobody likes to give up control so easily. People want to be double sure before turning over the reins to someone who knows exactly what to expect. Considering the rise in the number of mismanaged financial affairs, this should not be surprising as well. The problem is—there are times when individuals, such as people in property management are not capable of handling their financial affairs and looking for someone who is not only reliable but capable of handling their responsibility. This is where the role of a professional fiduciary is crucial.

What is a Fiduciary?

A fiduciary is a trustee—a person or a legal entity—that is hired by an individual to act in their best interests. Obligations extend beyond just managing the financial affairs, the fiduciary continually monitors the person’s investments and financial situation, and adheres to best practices of conduct for the duration of the relationship. Fiduciaries also manage the care, the safety, and the general well-being of the person for who they are responsible.

Someone who is incapable of handling their own affairs, they usually require a competent and ethical fiduciary. For example, people in property management who are no more capable of handling their own financial affairs and also don't have any close friends or family members willing to do the same, hiring a professional fiduciary can be of great help and offer peace of mind.

Difference between a Fiduciary and a Financial Advisor

A fiduciary and a financial advisor acting under a suitability standard function differently. The main difference between the two is the decision-making process. Before making a recommendation, fiduciaries usually undergo a prudent process meant to determine their client's best interest. After making a recommendation, fiduciaries discuss it thoroughly with their client to ensure there's no room left for misunderstanding. Financial advisors are not required to have such long and thorough discussions. Once the trade is placed, their duty ends. Financial advisors aren't obligated to monitor their client’s accounts or financial situations on an ongoing basis.

The Need Of Hiring a Professional Fiduciary

Though family members, friends or CPAs can also be asked to take on the task of handling personal and financial affairs, it's often a better idea to hire an independent third party that has the experience and expertise in it— a professional fiduciary! Hiring a professional in the area allows you to protect yourself from financial abuse and also avoid conflict between your loved ones.