If you’re preparing for retirement, there are a few key steps a Daily Money Manager can help you take to ensure a smooth, successful transition.
As a Daily Money Manager, I help people with all sorts of personal financial tasks. This includes everything from paying day-to-day bills to organizing insurance claims and tax records. I’m often asked to help individuals or families who have fallen behind or who are struggling with these tasks, but by being proactive and planning ahead, you can avoid these situations.
Today I’m going to focus on how you can avoid problems and set yourself up for a successful retirement. This article will give you an idea of where to focus your effort as you plan ahead, as well as the role of a Daily Money Manager (DMM) and how we can help.
6 ways a Daily Money Manager can help
1. Creating a personalized budget/spending plan
If you’re nearing retirement, you probably have a good idea of what your yearly income is going to be. If not, make it a priority to find out, because it’s impossible to create a budget without this information.
From there, you should set up a personalized budget based on your needs and your income. Putting everything down on paper and getting an accurate estimate will help reduce anxiety about retirement.
This is where a DMM can help. We can create an accurate forecast of how much you can safely spend, and help you make sure you’re sticking to it.
Following a budget can ensure a smooth retirement, and make spending money more enjoyable. You’ll know exactly where you stand financially.
2. Organizing backlogged paperwork
Chances are the last thing you want to be doing in retirement is sorting through tax paperwork, health insurance claims, unopened mail, investment statements and more.
If you’re not completely caught-up in these areas, schedule a time to so you’re not faced with it down the road. Or, ask a DMM for help. We can come to your home or office and help you in-person, so you don’t have to worry or fall further behind. If you need in-person help, the best place to find someone in your local area is the American Association of Daily Money Managers.
3. Streamlining your finances
One simple thing you can do to make managing your finances easier is closing redundant accounts. (Or, consolidating your accounts to fewer institutions.)
Sometimes it’s necessary to have multiple accounts and banks. A DMM can help you track everything and deliver the information you need on a single monthly statement to save you time. This is a great option if you want to keep an eye on the “big picture”, without sorting through multiple statements each and every month.
A DMM can also receive and file the statements on your behalf, and coordinate with other professionals like attorneys, CPAs, and financial advisors (with your permission). For example, you can have a DMM compile and prepare all of your documents and records for tax filing. Then, coordinate directly with your CPA to file your taxes.
4. Comparing and choosing insurance plans
A Daily Money Manager can work on your behalf to compare multiple plans and get you the best rates on property insurance, health insurance and more. We can also help you with Medicare, Medicaid and other government programs.
If you don’t use a DMM, you should still compare rates and you understand the different options available to you. Doing this can save you thousands of dollars in the long run.
5. Planning for relocation (if necessary)
Maybe you’ve always dreamed of retiring in Hawaii. Or maybe you just want to move a little bit closer to your children or grandchildren.
Planning ahead and thinking realistically about what will be involved in a move will eliminate surprises and last minute stress.
If it comes time to relocate, you may not want to be bogged down by the administrative tasks like changing your mailing address, transferring TV and phone services, etc. A DMM can quickly and easily handle this for you.
6. Monitoring accounts for fraud and suspicious activity
One of the added benefits of using a DMM is you’ll have a second set of (highly trained) eyes watching for fraud and scams in any or all of your accounts. If you choose to use a Daily Money Manager, it’s up to you which accounts or tasks you want us to help with. You can have us do everything, or just delegate a few things that you don’t want to worry about. (Such as, tax paperwork is always a popular choice).
You’ll get a detailed report for everything we do at the end of the month. And, you’ll have a single point of contact for any issues, disputes and questions – whether it’s related to banking, investments, Medicare, or anything else.