Financial mistakes seniors make
Here are four common financial pitfalls that frequently cause seniors difficulties. Arm yourself with information and avoid these mistakes:
Underestimating Retirement and Care Costs
No one can ever predict when and for long they will need care. In the name of prudence, it’s ideal to plan for the worst case scenarios and hope for the best. Recognize that care costs can easily exceed $80,000 per year at nursing homes and plan accordingly.
Falling for Scams
It’s difficult to fathom how someone could swindle a senior and still be able to sleep at night, but it happens every day. Seniors must be ever vigilant for scams, and remember important rules of thumb such as never giving out personal information over the phone and the old adage saying that if something seems too good to be true, it probably is.
Misconceptions About Medicare
One major misconception among seniors is the believe that Medicare will pay for long term care like nursing homes and assisted living. This is simply not true. Medicare will pay for rehab stays at nursing homes for a limited period, but it does not cover long term care.
Gifting Money in an Attempt to Become Eligible for Medicaid or VA Benefits
This can be a mistake because Medicaid and the VA will look back several years into applicants’ financial histories and see such gift. This money will then be counted as income or assets despite the fact the applicant has given it away.
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