Healthy Aging

E-mail this page to a friend

Money

Home > Healthy Aging > Planning Your Future > Money

• Financial Planning
• Estate Planning
• Additional Resources

As a woman, you may have less money to retire on. You may have taken time — maybe years — out of your career to care for your children. Also, women often make less money than men. This makes it even harder to set aside savings. You may be retired and living on a fixed income. Or you may still be working, trying to save enough for retirement. Either way, it is important for you to know how to make the most of your money.

Financial Planning

Today, women can expect to live longer than their spouses. A longer life means a longer retirement, which means you will need more money. You may have put a lot away in savings or a retirement plan. But are you making money with your money? Do you know how to invest and how you will manage your retirement distributions? Financial planning helps you manage your money so you can achieve your goals. Learning the basics of financial planning is something everyone should do. Even if you are informed, you might benefit from more expert tips. Visit mymoney.gov for more information about financial planning. Or talk with a professional financial planner. Financial planners can help you meet your financial goals by helping you manage your money. Be aware that you will be charged for the financial planner's services. If you decide to consult a financial planner, be sure to work with a fee-only planner. This type of financial planner works only for you and does not get commissions on your investments.

Estate Planning

Everyone should have an estate plan. Having an estate plan can reduce your tax burden. More importantly, it can spare your loved ones the pain of dealing with finances while also grieving your death. A good estate plan protects your property, ensures your wishes are carried out, and allows for the quick distribution of your assets.

First, you'll want to inventory and assign a value to everything you own. Here's a list to help get you started:

• Residence
• Other real estate
• Savings (bank accounts, CDs, money markets)
• Investments (stocks, bonds, mutual funds)
• 401(k), IRA, pension and other retirement accounts
• Life insurance policies and annuities
• Ownership interest in a business
• Motor vehicles (cars, boats, planes)
• Jewelry
• Collectibles
• Other personal property

After you've made your list of assets, you'll want to use that information to estimate the total value of your estate. Now it's time for some planning. Next, you will want to:

• Write a will
• Establish trusts
• List your beneficiaries for insurance policies and retirement accounts

Remember that estate planning is not a one-time event. Things can (and do!) change. Take another look at your estate plan if:

• The value of your assets changes a lot
• You marry, divorce, or remarry
• You move to a different state
• The executor of your will or the administrator of your trust dies or becomes unable to fulfill this duty, or your relationship with that person changes significantly
• One of your heirs dies or has a permanent change in health
• The laws affecting your estate change

Estate planning is complicated, and estate laws are always changing. Be sure to consult a lawyer who deals with family law or estate planning and perhaps a Certified Public Accountant (CPA) or estate planner for help.

Additional Resources

Publications

1.   Age Page: Getting Your Affairs in Order — This brochure discusses the steps you can take to prepare for the future. In addition, it includes information about important legal documents such as wills and trusts, advanced directives, power of attorney, and living wills.

   http://www.niapublications.org/agepages/affairs.asp

2. BenefitsCheckUp (Copyright © National Council on Aging) — BenefitsCheckUpRx is a useful web site for caregivers, seniors and people with disabilities. This resources helps individuals reduce their prescription costs and save money on their medications by calculating entered information by the web site user.

   http://www.benefitscheckup.org/link/caregiving

3. Estate Planning, Wills, Probate and Trusts (Copyright © ABA) — This publication gives an overview of estate planning, including information on wills, revocable trusts, power of attorney, advanced directives, and the probate process.

   http://www.abanet.org/rppt/public/home.html

4. Financial Information (Copyright © NHPCO) — This site provides information on financial planning for end-of-life care. It discusses topics such as health care costs, living costs, funeral planning, and other expenses.

   http://www.caringinfo.org/index.cfm?page=257

5. Grandparent's Guide: Legal and Financial Concerns (Copyright © Beatitudes Center D.O.A.R.) — This publication provides information on the financial stress and legal concerns for grandparents raising their grandchildren. It discusses custody issues and advance directives.

   http://www.lawhelp.org/documents/129341grandp_legal.html?stateabbrev=/AZ/

Organizations

1.   Administration on Aging, HHS
2.   Centers for Medicare and Medicaid Services, HHS
3. AGS Foundation for Health in Aging
4. American Association of Retired Persons (AARP)
5. Caring Connections

= Indicates Federal Resources

Content last updated March 5, 2009.