Friday, November 30, 2012

Finances: Planning for the future

Have you planned for your loved ones’ later years?

Some say our golden years are the best of our life, and we all want to see our parents and grandparents living comfortable but stimulating later lives. With a bit of planning, we can rest assured knowing that our older loved ones are financially secure. For those responsible for planning their parents’ or grandparents financial future, it might be worth looking into equity release. This technique allows the elder generation to unlock a steady cash flow when they need it most, by releasing some of the money locked up in their property.

What to consider?

Many elderly homeowners find themselves property rich but cash poor. When you reach a certain age, having your money tied into a property is not ideal for your needs, and releasing this capital could allow you to spend a little money on the activities you have always wanted to try.

This could be anything from long and leisurely golf holidays to a trip to a paradise beach or regular cinema dates, dance classes and other entertainment-filled activities.


How much money is tied up in equity?

British people over the age of 50 are estimated to own over £750 million pounds of equity in various buildings. Equity release schemes are a great option for those that wish to unlock some of that hard-earned cash. Once this has been unlocked, your loved ones are free to spend it on anything they desire. It can also be a valuable option for those looking to downsize from a larger house to smaller, more secure accommodation.

There are a number of safe income plans available, many of which boast numerous benefits. It is important to aid your loved ones in choosing a system that can reduce the risk of inherent equity sums, so seek independent, qualified financial advice when making this decision.

Once the collateral has been released, the world becomes your oyster. Your parents and grandparents can concentrate on living their later years to the fullest, knowing that many years of work have finally paid off.

Helping your loved ones to follow their dreams is the best feeling; especially now that they have all of the time in world! Such a plan will allow them to reside in a comfortable home, whilst still being able to enjoy a healthy bank account.
  
*This is a post from McCarthy & Stone.

3 comments:

  1. Lately, James and I have had quite a few conversations about wills, retirement homes and things of that nature. Of course we've already established life insurance and started looking into what type of retirement homes we would be able to afford.

    It can be hard talking about things like this, especially when they seem to be so far off into the future, but I can imagine that it would be 20 times harder having to deal with it by yourself if your significant other passes away and you have no plans in place. Or you look up and 50 years have passed and you have no savings set aside for assisted living homes.

    Great post! Sometimes we all need a little reminder that life is not always promised, and unfortunately and can be a very costly and stressful situation if you are not prepared.

    Reese

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  2. This is some great information. Something I should consider and keep in mind for my future. Luckily my dad had a plan years ago that allows him to live comfortably and without worries now that he's older. He still works as well but because he wants too and not need to. He says he works for the grand kids because he's saving for them too.

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  3. I'm glad you both found this post to be valuable. It's always tough to have these conversations with family members but no one wants to be stressed at the time of someone's passing.

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Thank you for taking the time to chat with me!