Financial Advice for Seniors

Everyone can use some help getting their financialyour records in an emergency.
affairs in order, but especially senior citizens who mayConsider renting a safe deposit box at your bank for
face special challenges and decisions involving moneycertain papers that could be difficult or impossible to
management later in lifereplace, such as birth certificates and originals of
Simplify your life: Have your Social Security benefits,important contracts. Don't put into a safe deposit
pension payments and other income automaticallybox anything you might need in an emergency, such
deposited into your bank account each month. Directas your passport or medical-care directives, in case
deposits are safe, reliable and convenient. Alsoyour bank is closed for the night or weekend.
arrange with your bank to automatically pay yourAlso, many experts generally advise against putting a
mortgage, utility bills, insurance premiums and otherwill in a safe deposit box because, in many states,
recurring charges.there may be complications accessing the will after
Doing so takes the hassle out of making scheduledthe person dies. And remember that copies of wills
payments and helps avoid late charges or servicearen't valid. Perhaps the best approach is to ask your
interruptions. You can also have automaticattorney for guidance.
withdrawals from your bank account to routinely putFor the most important papers you keep at home,
a certain amount of money into a savings account, aconsider an inexpensive but durable home safe.
certificate of deposit (CD), a mutual fund or a U.S.Toss old documents: Are you afraid to throw away
Savings Bond.old bank statements, bills, receipts and cancelled
Telephone banking allows you to use your touch-tonechecks because you think you may need them some
phone to confirm that checks or deposits haveday? We can't tell you when it's safe to throw away
cleared, get your latest balance or transfer moneycertain financial documents -that's for you to decide,
between different accounts at the same bank. And ifperhaps after consulting with your accountant or
you own a home computer, consider banking and billattorney.
paying quickly and easily over the Internet, 24 hoursFor example, cancelled checks with no long-term
a day, seven days a week. Internet banking and billsignificance for tax or other purposes probably can
paying is usually free of charge or it costs less thanbe destroyed after about a year. Cancelled checks
what you'd spend on postage.that support your tax returns (such as charitable
Also consider opening a "cash management account"contributions, investments, home improvement costs
that combines cash, stocks and other assets into oneor tax payments) should be held for at least seven
account with check-writing and credit card services.years and in some cases indefinitely.
These accounts usually involve an annual maintenanceAlso, to avoid becoming a victim of identity theft,
fee.shred any document that contains a Social Security
Update your will and other legal documents: Who willnumber, bank account number or other personal or
inherit your savings accounts and other propertyfinancial information. A crosscut shredder that turns
when you die? Who else should have access topaper into confetti is highly recommended by
checking accounts to pay bills if you're hospitalized?experts.
What kind of medical treatments do you want toTake precautions with old accounts. For the benefit
receive - or avoid -if you become critically ill? Theseof your heirs, either dispose of proof of old bank and
are the kinds of questions you should be askingbrokerage accounts, life insurance policies and other
yourself, preferably in consultation with familyassets you no longer own (again, assuming you don't
members and your lawyer or other experts. Yourneed the documents for tax or other purposes) or
answers to these questions may require actionsclearly mark them as being sold or cashed in.
involving important legal documents and how you setOtherwise, loved ones who discover the information
up various bank accounts.after your death could waste a lot of time and
Some matters may be handled as part of your will.effort researching these mystery accounts when
Others may involve having or updating a "durablethere is no money or property to be claimed.
power of attorney" (authorizing someone to handleOn the other hand, people do lose or forget about
your finances, property or other personal matters ifmoney or property. It's easier than you think. For
you become mentally or physically incapacitated), aexample, you may move and fail to give a
"living will" (instructions about future medical care ifforwarding address to a bank where you have a
you become ill and are unable to communicate yoursmall savings account. Or, you may change your
wishes) or a "health care power of attorney"name and not notify your banks or other companies.
(designating a family member to make decisionsThat's why it's important to keep records of your
about medical treatment). Having these health-relatedfinances, note which accounts have been closed or
directives can prevent unwanted and potentiallycashed in, and make sure your financial institutions
costly medical procedures.and others who owe you money have your current
You may want to hire an attorney specializing in elderaddress.
law or "estate planning" (how money and propertyIn most cases, after a certain number of years of
and other assets can go to your heirs with abeing "unclaimed," assets are transferred to the state
minimum of costs, taxes and hassles).government, where they still can be claimed by the
Organize and protect your important documents:rightful owners. You also can begin a search for
Make sure your bank and brokerage statements,assets of any sort that have been sent to a state
insurance policies, Social Security and companyby going to the Web site of the National Association
pension records, and other personal and financialof Unclaimed Property Administrators.
papers are in a safe place and easy to get to.And one final warning: Beware of frauds involving
As the victims of recent hurricanes, floods and othercompanies offering to "find" your unclaimed property.
disasters have learned, it's wise to take extraThere are reputable companies that, for a fee based
precautions with essential records. For the moston actual recoveries, will help people who don't want
important original documents, such as wills, passportsto take the time to research unclaimed property or
and birth certificates, seal them in airtight andwhose cases may be unusually complex. But some
waterproof containers to prevent water damage.companies may charge fees up-front based on
Make backup copies and consider giving duplicates tomisleading claims or for services you could easily
loved ones -or at least let them know where to findperform on your own.