Helping your loved one plan their long-term care will inevitably bring up the money talk. After choosing the best long-term care for them, the next step is helping them create a financial plan for their future. Whether they will be entering an independent living facility, retirement community or skilled nursing home, this will bring up a conversation about short-term expenses as well as forecasting long-term needs, and it’s incredibly important to cover both. Building a management plan will solidify their ability to live within their means and also plan for future costs. If you are helping your loved one organize their budget, here are some simple ways to spend money wisely in assisted living:
1 – Estimate Monthly Expenses
By capturing all the necessary costs you can foresee, you can build a budget that is realistic and complete. Ask your independent living facility about their services, prices, different charges, criteria, staffing, and other rules. After finding the expenses that will arise on a monthly basis there, you can have a better idea of how much of the budget will have to go towards these basic expenses.
2 – Prepare a Budget
It will be important to get detailed information on your loved one’s assets, investments, insurance policies, and retirement plans. Totaling up their assets will give you a clear idea on what funding they have to put towards the monthly expenses at their independent living facility.
Then, factor in their expenses and costs from their monthly long-term care insurance, independent living costs, medical expenses, and any mortgage or rent payments. Seeing what is left over after expenses will give you a good idea on how much room there is for additional costs, or if you will need to find further funding.
3 – Make Room For Unforeseen Expenses
Unexpected costs will arise inevitably. It’s good to estimate escalating costs as your loved one gets older, and to factor in inflation to the growth of expenses. Make a list of possible extra costs and create a cushion for your budget to absorb these amounts as they come in.
4 – Prepare an Investment Strategy
In the case that you are planning ahead, build an investment plan that can help maintain key funds and also build upon existing assets. Depending on the level of risk that your loved one is comfortable with, find something that can yield a consistent return on their accounts, and find a financial adviser to help calculate estimated returns or risks. If you’re loved one is preparing to transition to assisted living already, visiting other options such as renting our their home instead of selling may also help stretch the funding out and continue to invest in their properties.
Budgeting the above areas will be crucial for seniors to manage and maintain the finances, helping them spend money wisely in assisted living. Try incorporating these simple money management tips for senior–they just might make the difference for your loved one, helping them live comfortably and enjoy their independence longer.
If you’re looking for a stellar retirement, look no further. Contact Stellar Senior Living today for more information about our assisted and independent living communities! Click here to find a facility near you or give us a call at 801-495-7000.
Stellar Senior Living, a family owned and operated senior living network, has been recognized as one of the premier providers of Independent Living, Assisted Living, and Respite Care nationwide. At Stellar, we take great pride in each of our communities, and in every single resident. We believe senior living is about more than healthcare. It’s about family. Come take a tour and feel the Stellar difference today.