5 Smart Financial Planning Strategies for Seniors

If you’re a senior citizen or worried about how to plan for retirement, here are five steps to make sure you’re ready for uncertain times.
1) Make sure you have health insurance.
One of the largest burdens seniors face is the deterioration of their health. It will happen at one time or another and there’s no worse way to drain a bank account and your savings than repeated trips to the doctor’s office. Having your future medical bills covered during your golden years is invaluable.
There are plenty of companies designed just for seniors. You can also apply for a joint policy with your spouse to cover all your needs. Make sure to choose the plan that covers the greatest inclusion and gives you the most coverage. Saving money here might turn around and hurt you later.
2) Reduce your tax footprint
Having a limited income means you need as many dollars and cents you can keep. This means finding the best investments that are immune to too many taxes. If you love the assurance of returns from a fixed bank deposit, you should consider MIP (Monthly Income Plan) of mutual funds. It offers the safety of a bank and gives stable returns, therefore more tax efficient. Also, if you are in a higher tax bracket, you can submit form 15H before March 31st to avoid a deduction of TDS to your income.
3) Know your advantages!
Retirees rightly have many special benefits they may not be aware of. Other than having a higher interest rate on bank deposits, there are others this senior community can use.
You can take advantage of many travel concessions, such as up to 50% of travel fare. You also have a higher non-taxable income. You will also receive priority service in court hearings, hospital services, banking and the like. So make sure you do some research to find out all the ways you can save a little extra money.
4) Have a rainy-day fund.
Even planning for every possible contingency, Murphy’s Law suggests something will always go wrong we didn’t plan for. This is why it’s prudent to set aside 15-20% of your income for unexpected emergencies. The plan is to have money readily available when you require it. Even if you have an insurance plan, you will still be required to pay a percentage of the bill out of hand.
5) Invest your money.
In tough financial times, it could be a smart decision to invest in a portfolio, such as gold, real estate, equity mutual funds and even cash on hand. The price of gold, for example, has been climbing even through the recession.
With uncertain times and financial struggles in this unstable economy, these five tips will help you stay ahead of the curve at all times.