How to Save Money for Care Home Fees
saving and spending (Photo credit: 401(K) 2012)
Care home fees are rising, which is making it harder for people to afford long-term care as they age. You have to start early to save for your retirement; if you don’t, you may find it a struggle to pay the high cost of care home fees.
Here are some ways you can begin saving for home care fees:
A Savings Account
Put money in a savings account as often as you can. Learn to make small savings here and there so you can put more into your savings account. The sooner you begin and the more you add, the better you financial position will be for retirement.
Invest Your Savings
We’ve all heard the saying – make your money work for you. So take the money you save and put it in an investment account. You can double or triple your initial investment with careful planning. If you are not comfortable making investment decisions, hire a broker who can guide you in the right direction.
Invest in Real Estate
If you can afford purchasing another flat, or even if you are interested in taking on a renter, you can make a lot of additional income. When you retire, you can sell the flat to pay for your care home fees. You can save your primary home for your children or grandchildren.
Buy Life Insurance
You can buy life insurance when you are young and then cash in once it matures. This will guarantee that you will have enough money to pay for care home fees. Just don’t forget to figure in the cost of inflation.
Look At Other Investment Options
As you get closer to retirement, you may not want to risk losing your money in stocks. Therefore, consider switching your high risk investments to CDs and other low-risk investments. Even a higher yield savings account will ensure that your personal wealth is slowly growing at a slightly faster pace.
Saving money for care home fees will ideally start while you are young. You can begin at any age, but the sooner you start the more you will have when you need it. Talk with a financial advisor to determine the best plan of action for your situation.
For more information on care home fees, including continuing care review, visit Cheselden.
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