Weighing the Pros and Cons of Going Cash-Free What Does a Cashless Society Look Like?
CREDIT AND DEBIT CARDS ARE MORE SANITARY AND CONVENIENT. Cash money is dirty. According to studies, cash carries bacteria, viruses, and germs. It was even found that 79% of dollar bills have traces of cocaine on them! Taking cash out of the ATM and depositing it into the bank can also be a hassle. DEBIT AND CREDIT CARDS MAKE OVERSPENDING MUCH EASIER. When we make purchases with a piece of plastic instead of actual money, it’s easier to think we have access to larger funds. Tangible cash makes it more feasible for most people to stick to a certain budget. FRAUD IS COMMON WITH DEBIT AND CREDIT CARDS. Hackers around the world commonly steal credit and debit card information through online shopping sites, digital wallets, and more. Submitting your card information online is just one of many ways your bank information can be compromised.
Right now, virtual cash and debit and credit cards coexist seamlessly with physical paper cash, and we are able to turn one into the other in a matter of seconds. In fact, many people don’t really use paper money anymore. According to a survey, only 16% of people carry cash on them at all times. While it’s unclear if the physical dollar will ever disappear, there are many pros and cons of going physical cash-free.
ELIMINATING PAPER MONEY IS EXTRA THEFT PROTECTION.
It’s difficult to replace actual paper cash, but when it comes to stolen debit and credit cards, transactions can be canceled and traced, and cards can be replaced. Better yet, through the Fair Credit Billing Act, those who use credit cards are protected. WITH CREDIT AND DEBIT CARDS, BUDGETING AND FINANCIAL PLANNING ARE EASIER. Paper cash doesn’t necessarily leave a paper trail. When transactions are made with credit and debit cards or via digital services, an automatic record of the transaction is created, making it easy to see exactly where your money is going.
How Will You Pay for Long-Term Care? PLANNING FOR THE WORST
We have all known or heard a story about a 90-year-old who still lives independently with an active lifestyle — and in the back of our minds, most of us imagine we’ll be just like them. But the unfortunate reality is that 70% of adults over 65 will eventually need long-term care. Since October is National Long-Term Care Planning Month, it’s the perfect time to discuss this fraught and sensitive issue. Most people vaguely understand that long-term care is expensive, but they’re typically shocked at the actual numbers once care is needed. Full-time nursing home care can cost around $100,00 per year, and Genworth Financial reported that a home health aide costs an average of $54,912 per year in 2020. While the average person only needs long-term care for around three years, some people will need support for a decade or more. So, how can anyone expect to pay for this? While we strive to ensure our clients have a financial cushion, even aggressive investment strategies are unlikely to produce millions of dollars in surplus for middle-class people. People without means often rely on Medicaid to cover their long-term care costs, but reducing your wealth to meet the eligibility
standards is far from ideal. And Medicare does not cover many types of long-term care.
Saving what you can is the first step. The second is talking with your family, which you may assume would care for you. It’s wise to have this discussion now about what is and isn’t feasible while you’re not in crisis and emotions are not running high. People still in their 40s and 50s can also consider long-term care insurance. Premiums are pricey, and not everyone will be eligible. But many people ultimately sell their homes or take out reverse mortgages to pay for long-term care, so insurance may be a better investment than it first appears. Your financial planner can help you understand how much coverage you might need. There is also good news. Research shows that almost half of people will have no out-of-pocket expenses related to long- term care, and another quarter who recently turned 65 will pay less than $100,000. But we can’t predict who will fall into the category of very high expense. Don’t be caught off-guard. Consider your options now, create a plan, and hope you will not need to use it.
P2 | PATRIOTWEALTHNC.COM
Made with FlippingBook Ebook Creator