Tax season has finally come and gone, and everyone can breathe a little easier. If your senior loved one is expecting a reasonable refund, he or she might also be wondering what to do with the incoming funds. Below are five useful things that seniors can do with their tax return, furnished by the leading local provider of hourly home care in Warren.
1. Invest in the Future
From creating a fund to pay for a grandchild’s college education to setting aside money in case specialized post-stroke or Alzheimer’s care in Warren is ever necessary, it’s never too early to plan for the future. Talk with your senior loved one about future events (real or unpredictable) they’d like to prepare for and start a separate fund specifically for that purpose.
2. Reduce Debt
Whether you’re 18 or 88, it’s never a bad idea to reduce debt. Sit down with your senior loved one and map out a payment plan. If his or her debt is low enough, it might be worthwhile to pay it off with one lump payment. Otherwise, put a large portion of the tax return towards debt so payments become more manageable and debt can be paid off in a short amount of time.
3. Lead the Way
Although end-of-life conversations are never easy, encourage your senior loved one to put funds towards final costs ahead of time. Whether it’s selecting a burial plot, choosing a final resting vehicle or cremation procedure, responsible seniors can use their tax returns to remove the burden of paying those final costs from their loved ones.
4. Stocks, Bonds and Financial Instruments
Cash is vulnerable to inflation and other real-world depredations. Using the proceeds of an annual tax return can yield significant benefits when invested in carefully chosen stocks, bonds and other financial instruments. If your senior loved one already invests, consider bolstering those investments with the tax return.
5. Life Insurance
With the rise of professional actuarial standards, life insurance is now affordable even for seniors. With the security of a comprehensive life insurance policy, seniors can be assured that their loved ones will be taken care of after their passing.
Even if your senior loved one is in perfect health, it’s never too soon to plan ongoing, long-term home care. To learn more about the care available in your area from Home Care Assistance of Warren, you can click here or call 908.450.9400 to schedule a free, in-home consultation with one of our trusted Care Managers.