RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Knowing Your Role as a Financial Caregiver

November 10, 2016 1:51 am


Over 90 million Americans care for a loved one living with a disability, disease or experiencing reduced financial capability as a result of aging, according to the Caregiver Action Network. In addition to doling out love and services, these caregivers play an important role in ensuring that all finances—from routine to complex—are managed wisely, helping their loved ones maintain the best quality of life possible.

ABA Foundation, through its Safe Banking for Seniors program, offers the following tips to help individuals understand their role as financial caregivers:

Learn the rights and restrictions that apply to your role. Financial caregivers, such as those with a power of attorney, trustees, and federal benefits fiduciaries, are fiduciaries with a duty to act and make decisions on their loved one’s behalf. Learn the legal responsibilities of your assigned authority in order to better execute your role.

Manage money and other assets wisely. Financial caregivers may be in charge of daily, unexpected and future expenses their loved one may incur. Especially if the beneficiary has a fixed income or limited finances, it is extremely important that caregivers minimize unnecessary costs and budget accordingly to ensure that all money is properly allocated.

Recognize danger signs. Seniors have become major targets for financial abuse and fraud. Make sure to stay alert to signs of scams or identity theft that may put your loved one’s assets in peril.

Keep careful records. When acting as a financial agent, proper documentation is not only encouraged but required. Make sure you keep well-organized financial records, including up-to date lists of assets and debts and a streamline of all financial transactions.

Stay informed. Monitor changes in financial status of the beneficiary and take appropriate action, as needed. Also, be sure to stay up to date on changes in the laws affecting seniors. 

Seek professional advice. Consult a banker or other professional advisors when you’re not sure what to do. 

Source: American Bankers Association (ABA)
 

Published with permission from RISMedia.


Tags:

Where to Live If You Want to Build Wealth

November 10, 2016 1:51 am


If you're looking to live in a wealth-building area, then results from a new Bankrate survey may be a bit of a surprise: pack your bags and move to the San Francisco Bay area.

Yep. Despite having some of the highest rents in the country, the Bay Area is the best U.S. metropolitan area for building wealth. The Bankrate survey ranked 21 large metro areas in five categories: savable income, human capital, debt burden, homeownership and access to financial services. 

The nation’s highest savable income is a big part of San Francisco’s No. 1 overall ranking. The average Bay Area resident can sock away $16,657 per year, almost twice the national average, after subtracting local expenses from incomes. While it’s a very expensive place to live, there are plenty of high-paying jobs, so residents are able to keep their non-mortgage debts low (fifth lowest among the 21 markets) and their credit scores high (second highest).

Minneapolis/St. Paul is second-best overall (aided by the lowest average unemployment rate over the past five years), Washington, D.C. is third (only San Franciscans are able to save more), St. Louis is fourth (it offers the best access to financial services) and Detroit is fifth (it has the highest homeownership rate and the lowest non-mortgage debt burden).

“Different metro areas affect households’ abilities to amass wealth in different ways,” says Bankrate.com analyst Claes Bell, CFA. “In some metro areas, like San Francisco, homeownership can be prohibitively expensive, but higher-than-average salaries can help residents stash more money away in tax-advantaged retirement accounts. On the other hand, Minneapolis-area residents don’t earn as much, but the area’s affordable housing and recovering real estate market provide opportunities to build wealth over the long term through home equity.”

Source: Bankrate
 

Published with permission from RISMedia.


Tags: