Anyone else anxiously looking ahead to brace for what the rest of 2020 has in store?

I know I am.

This year was certainly not what any of us had expected. Since March, families have watched their travel plans, jobs, businesses, and retirement dreams fall apart. Even today, more than six months into the pandemic, you still can’t walk through a store or a town center without visible reminders that things are not what they used to be.

And yet, I am hopeful that this dark situation may carry a nugget of something useful. Here are three questions that may help you find that nugget, too.

What is essential for you?

In the beginning of the pandemic, our worlds were suddenly reduced to a small footprint. Many people, especially those with at-risk family members, hunkered down in their homes. In that locked-down version of life, you can’t help but discover that certain people, things, and experiences are essential for your wellbeing.

For some, it’s the daily walk or the chance to go to a grocery store and choose your own produce. For others, it may be about having a reserve of food, supplies, and money. Maybe it’s that weekly dinner with friends, or a travel destination to look forward to. Take note of what life ingredients turned out to be essential for you.

On the other hand, we have all learned that we can be OK without some things. Sure, 2-day delivery from Amazon is nice when you can get it… But, as you have discovered by now, you will probably make it even if it gets there 2 weeks later.

What unexpected gifts will you remember?

Few things in life are uniformly awful, no good, and terrible. You may have to dig deep, but there were probably moments of re-discovery and gratitude mixed in with all the hardships of 2020.

Having a cup of coffee in the morning while reading the paper on your porch? Finding that great show on Netflix that made you laugh? Intentionally scheduling and showing up for conversations with friends and family, even if they have to be on Zoom? Getting into a rhythm of preparing and eating good food at home? Going to bed at a reasonable hour?

Spend some time thinking about those glimpses of goodness. To be sure, they do not cancel out all the restrictions and worries of 2020. However, they shouldn’t go unnoticed, either.

What money lessons will you take with you?

You can’t talk about 2020 without addressing the elephant in the room. With furloughs, layoffs, and salary cuts, many families must re-assess their money situation. Here are some valuable reminders.

Emergency savings matter

It is easy to think about emergency savings as a luxury that you can do without, as long as your job seems stable and you generally live within your means.

However, the whole point of an emergency is that you can’t always predict it.

If someone had told me a year ago that virtually every restaurant in the US would have to either shut down for months or sell takeout only, I would have replied “I don’t believe it”. Extreme happenings sound so inconceivable — until they happen. So, do what you can to build that emergency savings account. You will never regret having extra money in reserve.

Backup career plans matter

This crisis has shown us that there is no job security. This doesn’t just affect the folks in the notoriously unstable entertainment industry. Even in the “essential” professions (such as healthcare), people have experienced layoffs and furloughs. Now is the time for everyone to reflect on what else we could do with our skills, or what areas we would be willing to learn if we had to pivot.

As a side note: The idea of a side hustle or multiple income streams is a good one. However, the reality is that not everyone can do it. When considering your options for additional income, be sure to look at all angles and consider all the risks.

Financial strategy matters

Remember March 2020, when the stock markets crumbled in some of the worst single day drops ever? It can be terrifying to watch your 401(k) balance take a significant hit, especially if you are close to retirement.

When something like that happens, it is easy to panic and sell your investments to avoid losing even more money. In the wake of market turbulence, many people have made mistakes that have jeopardized their financial future. So, today more than ever, it is important to have a solid financial plan and to work with a trusted professional who can help you make smart choices with your money.

Don’t Miss Medicare Enrollment Deadlines!

Usually, my October column focuses on reminding you about Medicare Annual Enrollment Period (or AEP for short). However, COVID-19 has thrown a wrench into our “usual”. Because so many of our readers have been affected by furloughs and layoffs, we need to talk about three different kinds of Medicare enrollment periods.

Missing Medicare deadlines has always been expensive, and now is the time to do what you can to stay informed and act timely.

Initial Enrollment Period

The Initial Enrollment Period for Medicare spans the three months before, the month of, and the three months after your 65th birthday.

Those who are already receiving Social Security will receive their Medicare card automatically for Part A and Part B. Those who are not on Social Security need to sign up. Keep in mind that there could be a gap (ranging from one to three months) between the time you sign up during the initial enrollment period and the time your coverage starts.

Normally, an individual could walk into a local Social Security office for help with signing up for Medicare. At the time of this writing, all Social Security offices remain closed for walk-in visitors. The good news is that you can submit enrollment forms online, and phone lines are open for questions.

Remember that failing to sign up for Medicare on time can lead to stiff late-enrollment penalties that continue for life. Those who are still employed when they turn 65 can stay with employer-provided group coverage, but Cobra coverage does not qualify as a valid exception. So, if you are older than 65, have lost your job, and are currently using Cobra insurance coverage from your former employer, read on for Part B Special Enrollment Period below.

Part B Special Enrollment Period

What happens if you were working past age 65 and have stayed on your employer’s insurance up to this point, but have recently lost your job as the economy has ground to a standstill? Individuals in this situation can and should take advantage of what’s known as Part B Special Enrollment Period (SEP). Part B SEP is available to you for up to eight months after you lose coverage from employment.

Timing is really important here, so remember that you can have no more than eight consecutive months without coverage from either Medicare or insurance from current work. For many people, it makes sense to enroll in Medicare before they lose coverage from a current job because that strategy can help them avoid gaps in coverage. After all, we are not just worried about late-enrollment penalties. You may be responsible for any health care costs you incur in the months after losing job-based coverage before your Medicare coverage takes effect, and those bills can snowball quickly.

Annual Enrollment Period

Medicare Annual Enrollment Period begins on October 15, 2020 and runs through December 7, 2020. This is your time to make changes to Medicare Advantage and Medicare Part D coverage. An annual review of your options is the only way to ensure that your Medicare choices make financial sense for you and your family, so mark your calendar!

What does an annual review look like? Begin by researching Medicare Part D plans that are available to you. The main Medicare website (www.medicare.gov) is a good starting point, and the phone line at 1-800-MEDICARE can also be a great resource.

If you have a significant prescription load, you may look into potentially switching your pharmacy. Drug companies negotiate special discounts with certain pharmacy chains, and a bit of legwork can save you significant money over the course of the year.

Update your list of current medications and dig into prescription restrictions by plan (you will have to manually input each prescription into www.medicare.gov forms to get the details). Some plans may force you to try a less expensive generic version of a drug before being allowed to order a more expensive alternative. Others require your doctor to get plan authorization before being able to prescribe certain medicines. Make sure you understand these details, because they will make a real difference in your experience with the plan!

Finally, be sure to estimate and compare your overall annual cost of choosing one plan over another. The biggest mistake I see people make is picking a plan based on premium alone. Add up your estimated co-pays and look into what an emergency room or a hospitalization might cost you. Do this once, and you can save yourself significant money and trouble for the year!

The economic shutdown due to a pandemic wasn’t what we expected when we were buying our 2020 planners. And while some sectors of the economy have since reopened, the world is anything but “normal” these days.

With this much uncertainty, people are struggling with money decisions. Is now a good time to invest? Is the situation bad enough to tap your 401(k) or emergency savings? And what if everything gets worse? So, we’ve got high stress from this previously unknown disease, plus high uncertainty about what will happen next.

Add in the fact that many avenues for getting recharged and renewed aren’t a good option right now. Vacation? Massage? Enjoying dinner with a group of friends? Many people would think twice before doing any of it.

So, what should you do if you feel like you should do something, and yet you are paralyzed when it comes to money decisions?

Focus on what you can control.

To help you narrow down what you can control, let’s look at some of the things that are clearly out of your hands. The markets, the economy, politics, inflation, and government policy. The trouble with these is that they occupy most of the headlines. It’s easy to get stuck on them and feel as though there’s nothing you can do.

If you find yourself in this rabbit hole, consider setting a limit on your media (or social media) consumption. Instead, focus on specific things that you can do in the real world to help your day go better. Make your bed. Cook a tasty dinner. Call a friend.

Think microsteps.

Think of something small that you can do in direct support of your long-term goals. Yes, the future is unknown. However, deep inside you know what matters to you in the long run. So, pick one tiny positive step in that direction. It will feel good, and it may help you recover the sense of control over your own life.

Here are some ideas to get you started. Double-check your beneficiary designations in your 401(k), 403(b), or your life insurance. Make an appointment to update your estate planning documents. If you are spending less on beauty services or a gym membership right now, set up an autopay to transfer that “extra” money to a savings account.

Remember your emergency savings.

Emergency savings work two ways. When you are financially able to do so, you put some money away for when times get tough. If and when the times get tough, you lean on that money to get you through.

I am noticing people struggle with both right now. With this much uncertainty, it’s hard to save. It’s also hard to pull that money out because you worry that you haven’t hit the really tough stretch yet.

So, take some time to move forward on both fronts.

If your job situation is stable, think of a small amount that you begin to put away now. Don’t judge yourself for it being too small to make a difference. Over time, good habits snowball.

Also, draw a line in the sand. Decide for yourself what would be a valid reason or a trigger to use some of that money. You might even write it down. Once the decision is made, you don’t have to worry about it any more. If and when you cross the line, you will know what to do.

Have a plan for your investments.

There are two questions I hear often.

“Should I get out of the market to avoid losing money?”

And, “Should I get into the market to not miss out on making money?”

My recommendation is to stop playing fortune teller. There’s always a risk when it comes to investing. This year, we have a double whammy: a pandemic in an election year. Nobody can predict the markets with 100% certainty, and many of the old rules have already been proven unhelpful in this unprecedented situation.

If you are worried about your investments, talk to a CPA financial planner. There is no one-size-fits-all answer. Some people need to rebalance their portfolio to correct the stock/bonds ratio that might have drifted out of their comfort zone. Some people need to move a portion of their money out of the market. And some people need to put blinders on, keep on steady, and do nothing differently.

In closing: Know that this crisis will end. I can’t tell you when or how, but we humans have a good track record of solving difficult puzzles. This will be no different. And when we are finally out of this emergency mode, you will be glad to have made small steps that felt good in the moment — and also empowered your future self to have more choices.

Back in March, at the beginning of the COVID-19 shutdowns, all we wanted was for the world to go back to normal. Many of us have since realized that “normal” as we knew it is gone forever and that still more uncertainty lies ahead.

That development should not cancel your retirement plans, but it could force a temporary adjustment.

Can you still afford to retire on your original timeline?

For those of us who were hoping to retire this year or in 2021, the pandemic may have delayed retirement plans. Even younger professionals are anxiously checking their account balances, worried about uncertainty and market volatility. Those who are already retired and relying on their savings may discover that they must supplement their incomes by going back to work.

Everyone’s situation is different. However, you should know that very few people are fortunate enough to feel 100% insulated from the fallout of this economic crisis. The question is, how can you make the best financial decisions for yourself and your family, now that COVID-19 is upon us?

Understand your income channels

Step one, write down all of your income sources. Depending on your personal circumstances, they may include a full-time job, part-time gigs, rental income, income from a small business, Social Security, a pension, income from your investment accounts, 401(k), IRA, annuities, etc.

Once you have captured the current state of things, make a second list of income sources that you are not using right now (but you could in a pinch). Get creative. Include things you would do happily, as well as things that you would rather avoid. Reverse mortgage, tutoring, pet sitting, selling things on eBay, garden consulting, growing gourmet mushrooms… The longer you can make your list, the better.

There are several reasons to spend time on this second list. One reason is highlighted by a recent survey from Personal Capital, an online financial advice company. Survey participants were asked whether they felt financially prepared for retirement, and how many sources of income they had. Among survey respondents, those with three or more types of retirement income were far more likely to feel prepared for retirement. We have always known that it’s useful to diversify your sources of income in retirement, and the COVID-19 crisis has confirmed it.

The second reason is less obvious. This list is there to encourage you by showing, in black and white, that you are not at the end of your rope. There are so many things you have not yet tried. It doesn’t mean that you should immediately launch into doing some (or all) of them, but it certainly helps to know that you have choices.

Understand your spending

Step two, understand your spending. There are many ways to look at your household budget. In normal times, most of us would prefer to not look at it at all… However, these are not normal times. So, if you are usually allergic to budgets, now is the time to make an exception.

Examine your budget from two angles. First, look at it in terms of regular recurring expenses (housing, groceries, gas for the car) versus one-off expenses (insurance premiums you pay every quarter, an occasional visit from the plumber.)

Next, break your budget down into essentials and non-essentials. Essentials should include things like housing, utilities, food, insurance, and medical expenses. In some cases, debt repayment should be included in the essential category, as well. All other expenses should be marked as non-essential.

The purpose of this exercise is to help you get insight into the irregular expenses that eat into your budget, and to demonstrate that, if you had to, there are things you could cut. Again, depending on your situation, this may or may not be an immediate call to action.

Focus on your long-term goals

Finally, spend some time thinking about your long-term goals. Beyond the balance in your 401(k) and how much you can get from Social Security, what is it that you want from retirement? How do you want to spend your time? What memories do you want to make? What’s your plan to remain active, connected, and of value to the community around you?

Now, look at your answers carefully.

They may reveal that the changes forced on you by this unprecedented COVID-19 pandemic don’t go as deep as you thought. You may discover that you can still have and do the things that matter most. Among financial worries and health concerns, it is possible to find hope and live your life in a way that brings you personal fulfillment and joy.

Source: Personal Capital survey

Five million.

That’s how many Americans are living with Alzheimer’s Disease in 2020, according to the Alzheimer’s Association. The same study projects that the number will climb to 14 million by 2050. Chances are that you personally know someone who has been diagnosed, maybe even in your own family.

Here are five things you need to know in order to be financially prepared for the possibility of an Alzheimer’s diagnosis.

Understand your employment benefits

In the event of an Alzheimer’s diagnosis or a brain injury, your health and disability insurance will become your first line of defense. Someone in the early stages of the disease may be able to work for a while, so it pays to spend a couple of hours reading through your benefits package to get familiar with your options. Those who are likely to take the role of a caregiver should investigate whether they would be able to take time off under the Family Medical Leave Act.

Don’t skip checkups

It is true that today, there is no FDA-approved treatment for Alzheimer’s Disease. Unfortunately, some people read that statement and walk away thinking that early screening and checkups are therefore pointless.

That couldn’t be further from reality. Changes to the brain could be happening for over a decade before the onset of clinical symptoms. If detected early and addressed with lifestyle changes and therapies, an intervention could potentially make a tremendous difference for someone’s quality of life. So, find a physician you trust and don’t skip your annual checkups.

Get your financial house in order

Life gets busy, and there are always better and more fun ways to spend an evening or a weekend than sorting account statements or researching long term care insurance. Still, it is of critical importance for everyone to get organized sooner rather than later.

Here’s a starter financial preparedness list.

1. Legal documents, including a Will, a Power of Attorney for health care, a Durable Power of Attorney for financial matters, and a Physician Orders for Life Sustaining Treatment (POLST). For some families, the list should also include a Trust.
2. A master list of all bank and investment accounts, insurance products, property documents, etc. that will make it easier for your family to know what the moving pieces are. Make sure all accounts are properly titled.
3. A financial plan which includes a range of “what-if” scenarios.

This may look daunting, and as I mentioned earlier, there are always other priorities vying for your attention. And yet, it is important to get these documents in place early. After an Alzheimer’s diagnosis or a traumatic brain injury, your planning options would shrink dramatically.

Be prepared to navigate a patchwork of specialists and resources

It would be comforting to find a single expert or specialist who would be available 24/7 to help you make decisions, shorten the learning curve, and get access to resources. Unfortunately, such a person is difficult (if not impossible) to find in the case of Alzheimer’s Disease. Be prepared to navigate several expertise “silos” to get answers to your medical, financial, and practical caregiving questions. Don’t be afraid to ask how different parts of the system connect to each other and work together.

Work with a CPA or a financial planner

Alzheimer’s is tough news — no matter when someone gets it. Part of the tragedy of this disease is that it often strikes vibrant, active, young individuals with no warning. A diagnosis is devastating and discouraging, which is why families can often feel as though there is nothing they can do to improve their circumstances.

However, there are many possible scenarios for what happens after a diagnosis, how quickly the disease progresses, and the options to assure care and support throughout this journey. Adults 65 and older survive an average of 4 to 8 years after they are diagnosed with Alzheimer’s Dementia, but in this instance averages can be misleading. For some people, the life span is even shorter. Others can live with the disease for 20 years.

Because Alzheimer’s presents and progresses differently in every patient, each family’s financial plan for dealing with the disease will be different. No matter what the specifics look like, take some time now to put financial and legal plans in place. That will allow everyone to express and document their wishes and preferences. It will also open the door to discussing important, potentially expensive, and time-consuming matters of caregiving.

Those are hard conversations to have, even when they are hypothetical. So, work with a CPA or a financial planner who can help you ask the right questions, connect to the right professionals, and face the future with the strongest financial and legal foundation possible.

Source: Alzheimers FActs and Figures (Alzheimers Association)

As the country slowly begins to reopen, many families are left with tough questions that don’t get answered in press briefings.

Will the government’s efforts prove enough to restart the economy?

What will the new “normal” look like for schools, restaurants, and retail shops?

Will the virus mutate?

Will its new form be milder — or more severe?

When will we have proven therapies for treatment and/or a vaccine for prevention?

At the bottom of those questions, no matter what words are chosen, there’s a consistent theme.

“Will we be OK?”

That begins with health, of course, as we all worry about our family members and loved ones. It also carries over into our finances. For those who are near retirement, COVID-19 has upended the chess board and tossed all the pieces into the air. Some people are being pushed into an unplanned early retirement. Others are dealing with furloughs. Many have seen their investment account balances take a dip and delay retirement by several years.

As a financial planner and a CPA, here are my thoughts on money in the wake of the pandemic.

Have a process for making financial decisions

The true value of a financial plan is in the framework that it creates around important financial decisions. No plan works out exactly as envisioned. However, a good plan gives you space to think about what-if scenarios.

What happens if the bottom falls out of the stock market?

What if you need to retire earlier than planned?

How would you pay for a hospitalization?

By looking at dozens of questions like that, we can do the math and consider possible actions. For some people, it’s about optimizing their retirement contributions. For others, it might be about selecting a different mix of investments. Either way, a plan is a roadmap, and you deserve to have a roadmap in uncertain times like these.

Keep your emotions in check

I won’t sugarcoat it, these are scary times. Headlines try to outdo each other in their ability to prevent you from sleeping well at night. There’s much disagreement about the course of action to pursue. Nobody knows what tomorrow will bring.

Still, do your best to not panic.

In moments like that, remember that financial decisions made out of fear will only lock in your losses. I can’t tell you whether you should go to cash, invest in stocks, or buy more life insurance. What I can tell you is that now is a good time to talk to a trusted financial planner and a CPA (bonus point if it’s the same person!) As any other uncertain situation, this pandemic has created opportunities and traps. Be sure to navigate it with an experienced professional by your side.

Stay alert for scams

Do you know who else has been stuck at home with lots of time on their hands? That’s right, criminals who want to separate you from your money!

Brand-new scams come in the form of calls, emails, text messages, website links, and social media advertising. Cybercriminals might try to sell you fake COVID-19 testing kits or vaccines. They might pose as the World Health Organization, the IRS, or a family member in distress. Or they might offer to help you get your economic impact payment sooner.

So, remain on alert for any requests for money, personal or banking information, Social Security numbers, or passwords. Warn older family members to not fall for these scams. And examine any checks you receive in the mail carefully, especially if they come with a requirement to call a number (or verify information online) prior to cashing.

Focus on what you can control

My last bit of advice is to stay focused on what you can control.

It’s easy to get overwhelmed as we are all navigating so much uncertainty. There are many variables that are out of our court. State reopening timelines, the nature of this new coronavirus, the path to a vaccine, airlines that may or may not be in business 6 months from now…

We cannot control any of that.

However, that doesn’t mean you have no power. Now is a good time to get clear about the things that are within your control zone. You can choose to make your bed in the morning and get dressed, even if you are only going to the mailbox today. You can exercise to keep your body strong. You can connect with family, friends, and faith.

And you can spend some of this time on your finances. That might mean making a budget, looking over your insurance coverage, or revising your investment choices. Those things are still within your control — and could potentially help you emerge from this crisis stronger.

As governments began to close non-essential businesses and issue “stay at home” orders back in March, you were probably wondering…

How will families survive financially?

Part of the answer is the government stimulus package, also known as the CARES Act (which stands for Coronavirus Act, Relief, and Economic Security Act). It was signed into law on Friday, March 28 to give Americans a financial bridge until things get back to normal.

Here’s how the CARES Act may affect your finances.

Tax filing and payment deadline postponed

When it comes to Form 1040 income tax returns … April 15th no more! The deadline for filing tax returns has been moved to July 15. There is no need to file an extension. However, if you expect a refund, filing your 2019 taxes as soon as possible will allow you to get that refund quicker.

Rebate checks are coming

As a part of the stimulus package, the CARES Act provides for “Recovery Rebates” for individuals and families. This is probably the most anticipated part of the Act because some people will receive money in the mail or via direct deposit.

One confusing thing about “Recovery Rebates” is that they are calculated based on the taxpayer’s 2018 or 2019 income tax return — but they are treated as a rebate against the 2020 income tax return.

Here’s how it works. The government will use 2018 or 2019 numbers to cut the initial checks. When 2020 numbers become available, they will re-do the math. As a result, some people may get a smaller rebate now (or no rebate at all) and another rebate later when the 2020 return shows that they “deserved” it.

In good news, if your 2020 tax return shows that you should have received less than what you actually received, the government won’t ask you to give the excess money back. Once you receive the rebate check, you get to keep it.

How exactly will you get your rebate? It depends. Those who receive Social Security benefits, and those who had a refund in 2018 and opted to have it direct-deposited, will get the rebate through direct deposit into the same account. The rest should look for a check in the mail.

RMDs waived in 2020

If you were previously expected to take Required Minimum Distributions (or RMDs) from your traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or 457(b) plans, those RMDs have been waived for 2020. If you don’t need this money, you can leave it in the account!

In an interesting twist, the CARES Act also eliminated any RMDs that would need to be taken during 2020. So, if you turned 70 ½ in 2019 and opted to push your first distribution until April 2020, you would normally have to take two RMDs in 2020. This year, because of the extraordinary circumstances, you get a pass on both.

One more note on the RMDs: If you are not a procrastinator and have already taken your RMDs for 2020, you may be able to return them. Work with your CPA, since the steps will be different depending on when you took the distribution.

IRA contribution deadline extended

The deadline to contribute to your Individual Retirement Account or IRA has been extended to match the Federal tax filing deadline (July 15). That means you have until July 15 to make your 2019 contribution.

No “early withdrawal” penalty

Typically, it’s best to contribute to your retirement savings accounts and not touch that money until retirement. However, these are not ideal times. Many families have suffered financial hardship because of the Coronavirus. Some have been sick. Others have been laid off or furloughed, experienced work hour reductions, or were unable to work because they did not have access to childcare.

If that is your situation, you may qualify for a Coronavirus-Related Distribution from an IRA or a 401(k).

That means you are exempt from paying the 10% early withdrawal penalty. There would not be the mandatory 20% Federal withholding, and you would be eligible to repay the distribution back into the retirement savings account over the next 3 years. By default, any income from the early withdrawal would be split evenly among 2020, 2021, and 2022. However, you could elect to include the whole distribution in your 2020 income (which may make sense if your overall income for the year is lower than usual). Before you make this election, talk with your tax CPA.

In closing, keep in mind that the CARES Act is a historic emergency relief program. As any change in tax law can potentially create planning opportunities, CPAs and financial planners will spend the coming months pouring over the Act. So, work with your CPA to fully understand how the new law will affect you.

This may be one of the most challenging columns I have ever had to write.

One reason is that the entire country is affected by the novel coronavirus. As I write these words, schools are closed. Grocery store shelves are empty by 11AM. Travel has ground to a standstill, and entire communities are being asked to “shelter in place”. Nobody gets to wake up to life as usual: not tomorrow and not for a while.

The other reason is that there’s so much we don’t know. This situation is unprecedented. We will learn more about COVID-19 in the coming weeks. At some point in the future, we will look back and this will all make sense.

Today, nobody has the crystal ball.

So naturally, people are worried. They are concerned for their health, their way of life, and their finances. With the markets rallying to recover and dropping in the span of minutes, what will happen to retirement savings? Is it a good idea to go to cash, or is it better to wait and see? And what about all the people who are being laid off, put on leave, or asked to work in a way that’s neither convenient nor comfortable?

There are many questions and few answers, at least right now.

However, here’s a bit of good news.

There are some things that you can do to potentially avoid expensive mistakes made out of fear. There may even be ways to use this situation as an opportunity.

Here are the 5 things to ponder.

Continue to contribute to retirement savings

If you are still working, keep making contributions to your 401(k), 403(b), or IRA. It may seem counterintuitive, especially since the market has been so volatile. However, if you keep up your regular contributions, you can stand to get at least three benefits.

One, your contribution is tax-deductible, which means a discount on your tax bill. Two, if your employer matches your contribution, that’s free money you wouldn’t want to miss out on. And three, as long as the fundamentals of our economy still work, you are buying into great companies at a discount. Dollar-cost averaging may be a technical term, but it’s also a good way to build a nest egg for retirement.

Build a (pandemic) budget

You may be the type who diligently tracks every dollar, or you may be allergic to budgeting. Either way, now is the time to take a serious look at your household budget. What cash flow can you count on in the next 2-3 months? What expenses are essential for your survival? Which expenses could you cut if your hand was forced? Knowing the answers will give you a measure of control. It will also set up the framework for future choices, should they become necessary.

Look into refinancing

If you have a mortgage or other debt, you may think about refinancing to take advantage of the recently lowered interest rates. This strategy is not for everyone. The right answer will depend on your credit, as well as how long you plan to stay in your home, how much mortgage you’ve got left, how much it would cost you to refinance, and many other factors. Talk to your financial planner or CPA!

Consider starting your Social Security or annuity payments sooner than planned

In a perfect world, we would all want to get the maximum possible monthly benefit amount from Social Security. However, given the volatility in the markets, it may make sense for some people to delay the moment when they have to tap their retirement savings accounts. That would give account balances a chance to recover and potentially provide for a more comfortable retirement in the long run. Check with a financial planner first.

Use this time wisely

My last point may come as a surprise, but it may be the most important one yet. This forced interruption in business as usual has given many of us an abundance of open time. If you use it well, you will emerge from this turbulence feeling stronger, better, and smarter than before.

So, connect with your village — even if it has to be by phone or through the social media. Share your resources and knowledge. Learn a new skill. Go for a long walk if your community allows that. Do some light exercise every day. Get some sleep. Read that book that’s been sitting on your nightstand for a month.

And, at the end of the day, remember that the world is full of helpers. Times like this test our ability to adapt, but they also give us hope.

What would you guess is the leading type of elder abuse? [Read more…]

What would you guess is the leading type of elder abuse?

Some people might say it’s financial exploitation, physical abuse, or even abandonment. All of those are awful, and they certainly get a lot of press. However, according to the Department of Health and Human Services, the leading cause of elder abuse is self-neglect. Over 144,000 cases have been reported in 2019.

For reference, that’s more than the next five categories of elder abuse (neglect, financial exploitation, emotional abuse, physical abuse, and sexual abuse) combined.

What exactly is self-neglect?

Think of it as inability to perform essential self-care, such as providing yourself with food, shelter, personal hygiene, and medications. The scary thing about self-neglect is that it hides in plain sight. Your neighbor who hasn’t left the house in months, your aging parent who insists he can get by without help, and that family two streets over with large appliances dumped in the front yard and a rusting van in the driveway could all be suffering from self-neglect — and you wouldn’t even know it.

So, what should you do if someone you care about appears to be sliding into self-neglect?

Stay away from trying to “diagnose” the problem

There could be many reasons contributing to self-neglect. Some might be medical, others physical or emotional.

Sometimes, multiple reasons snowball.

For example, your neighbor’s wife may have passed away, followed by an accidental fall that fractured his hip. Those two factors could make it extremely difficult for him to take care of his body, prepare food, and get to medical appointments. Yet from the outside, it would just look like an aging neighbor that you haven’t seen in a while, or a church member who hasn’t attended service in the months since his wife’s funeral.

The other problem with issuing a diagnosis is that it puts the problem into a neat box and allows you to go back to living your own life. If you have convinced yourself that the issue is medical (or emotional, or perhaps that person is just “crazy”), then it’s easy to walk away from someone who needs help.

Break the cycle of self-isolation

The top contributing factor to many self-neglect cases is isolation.

According to the Pew Research Center, people aged 60 and older spend over 10 waking hours completely alone, which can have a negative effect on their well-being. In fact, loneliness is more lethal for health than obesity, inactivity, or even smoking.

As humans, we all need deep bonds with our family and close friends. However, low-intimacy interactions are just as important. It might seem like just saying hello or chatting about the weather should not make a difference, but it does. And that’s the good news, because neighbors, shop keepers, librarians, checkout clerks, and bank tellers all have an important role to play in staving off loneliness.

So, if you notice that someone you care about is slipping into self-neglect (or just doesn’t seem to have that sparkle in their eye), know that you can help. It doesn’t have to take hours of your day. A simple hello and a smile will go a long way.

Research help options

Can anything else be done to help?

The answer will depend on the specifics of the situation, and on how close you are to the person who’s struggling. Here are a few ideas to consider.

If someone you love needs assistance with activities of daily living (bathing, going to the bathroom, eating), Medicare or Medicaid could help. Look into local services that can assist with physical tasks that get difficult with age. Your local Agency of Aging could connect you to charities and nonprofit organizations that can help seniors, such as the Lions Club and Meals on Wheels.

New technology could offer help, as well. Several developers are working on social connection apps to help combat loneliness. For example, Papa is an app (quite similar to Uber) that allows subscribers to “rent a grandkid” by the hour. Papa pairs older adults and families with motivated college students for companionship and assistance with everyday tasks, such as grocery shopping, meal preparation, or light cleaning. Papa Pals can also play board games or spend time sharing stories around the dining table.

You can help prevent self-neglect

Self-neglect is a silent killer. Unlike terrible stories of senior financial abuse, it doesn’t get national news coverage. However, as the case count climbs up, so should our collective awareness about this problem. If you worry about someone in your community or in your family, know that you have the power to change the situation for the better. Don’t discount the impact you can have through the smallest of interactions.

This article appeared in The Eagle on March 5, 2020.