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By Gail Glockhoff-Long
GolderCare Solutions
Benefits Advocate

Is It Time to Simplify Your Life?

We have all heard Ecclesiastes 3:1-2 “For everything there is a season, and a time for every matter under heaven: a time to be born, and a time to die; a time to plant, and a time to pluck up what is planted.”  Aging is part of that timeline.  I helped my parents through the seasons of aging and help families every day through their path.  Along the way, I realized what I don’t want to leave for my Power of Attorney to have to worry about.

There comes a day when you look around and say – Do I really need all this STUFF? I started by donating the marimba that I have had since my college days.  New college students can enjoy playing on it now.  Closets are next.  Time to start simplifying my life.  A realistic approach would be to sort through things into save / donate / trash piles in a manner that works for you. Be creative with your donate/repurpose items.  ReStore / theater groups for vintage / shelters for usable towels / animal shelters for old towels and rugs. It is amazing how energizing it is to see a clean organized space.

Next is finances.  Imagine your poor Power of Attorney (POA) adult child who has not been involved in your finances stepping in to help.  If you are in a nursing home needing to apply for public assistance, they have to determine every place you did banking or investing for the last five years.  Once they know the institutions, they then have to find all of the accounts and request statements for up to five years on every account.  As you age, knowing that a younger family member will probably need to help you with finances, and possibly Medicaid in the future, you have a couple directions you could take – depending on how helpful you want to be to your POA.

Scenario 1 – You own a car, have one residence, have one savings and one checking account at the same bank or credit union and you have investments with one financial planner.  You also have a prepaid funeral and a life insurance policy.  When it comes time for you to move to assisted living, nursing care or supportive living and possibly apply for Medicaid, your assets are already consolidated and easy for your POA to determine value and collect statements.  Whether your total assets are $800,000 or $8,000, your limited number of accounts will make life much easier for your POA.  Your daughter will appreciate your consideration.

Scenario 2 – You own a house in Moline, a condo in Florida, and co-own farm property in Iowa with your siblings.  You have two SUVs and a little sporty car – you also have a boat with trailer in Florida.  You and your spouse have a total of six life insurance policies.  There is a retirement 401(k) with Vangard, accounts with Edward Jones, annuities with both Modern Woodmen and CUNA, five bank accounts at Chase, three accounts at DuTrac, and eight Certificates of Deposit at TBK Bank with different maturity dates.  You also have an old HELOC from the last time you remodeled the house that is still open with a little balance at US Bank.  You like to stay actively involved in your finances and regularly move money between banks and different bank accounts.  Is your POA up to managing this level of complexity?  If mentally able, do they have the time?

Over the years, we have had people in both scenarios.  The POAs are MUCH happier dealing with scenario 1.  What season of life are you in?  Late summer?  Autumn of life?  Or are you already in November?  Simplifying is appropriate in all seasons.  Simplifying both your finances and your physical stuff will remove a stress for both you and your POA.

Gail is a Benefits Advocate and Insurance Specialist.  GolderCare has been assisting seniors in Iowa and Illinois with decision support, care management, placement and cost of care issues since 2008.