Savvy Senior – February Columns
- How Long to Keep Tax Records and Other Documents
- How to Help a Hoarding Parent
- Does Medicare Cover Talk Therapy Services?
- The Surprising Dangers of Earwax
- How Seniors Can Get Help Lowering Their Grocery Bills
How Long to Keep Tax Records and Other Financial Documents
Dear Savvy Senior,
Is there a rule of thumb on how long someone should keep their old financial paperwork? I have file cabinets full of old receipts, bank and brokerage statements, tax returns and more that I would like to toss.
- Recently Retired
Dear Recently,
It’s a great question. As we get older and our financial life gets more complicated, it’s difficult to know how long to keep old financial records and paperwork and when it’s safe to get rid of them. Some things you’ll need to hold on to for your whole life and others for just a month or so. Here’s a checklist I’ve created that can help you determine what to save and what you can throw away.
Keep One Month
- ATM receipts and bank-deposit slips, as soon as you match them up with your monthly statement.
- Credit card receipts after you get your statement, unless you might return the item or need proof of purchase for a warranty.
- Credit card statements that do not have a tax-related expense on them.
- Utility bills when the following month’s bill arrives showing that your prior payment was received. If you wish to track utility usage over time, you may want to keep them for a year, or if you deduct a home office on your taxes keep them for seven years.
To avoid identity theft, be sure you shred anything you throw away that contains your personal or financial information.
Keep One Year
- Paycheck stubs until you get your W-2 in January to check its accuracy.
- Bank statements (savings and checking account) to confirm your 1099s.
- Brokerage, 401(k), IRA and other investment statements until you get your annual summary (keep longer for tax purposes if they show a gain or loss).
- Receipts for health care bills in case you qualify for a medical deduction.
Keep Seven Years
Supporting documents for your taxes, including W-2s, 1099s, and receipts or canceled checks that substantiate deductions. The IRS usually has up to three years after you file to audit you but may look back up to six years if it suspects you substantially underreported income or committed fraud.
Keep Indefinitely
- Tax returns with proof of filing and payment. You should keep these for at least seven years, but many people keep them forever because they provide a record of your financial history.
- IRS forms that you filed when making nondeductible contributions to a traditional IRA or a Roth conversion.
- Retirement and brokerage account annual statements as long as you hold those investments.
- Defined-benefit pension plan documents.
- Savings bonds until redeemed.
- Loan documents until the loan is paid off.
- Vehicle titles and registration information as long as you own the car, boat, truck, or other vehicle.
- Insurance policies as long as you have them.
- Warranties or receipts for big-ticket purchases for as long as you own the item, to support warranty and insurance claims.
Keep Forever
Personal and family records like birth certificates, marriage license, divorce papers, Social Security cards, military discharge papers and estate-planning documents including a power of attorney, will, trust and advanced directive. Keep these in a fireproof safe or safe-deposit box.
Reduce Your Paper
To reduce your paper clutter, consider digitizing your documents by scanning them and converting them into PDF files so you can store them on your computer and back them up onto a cloud like Microsoft OneDrive, Apple iCloud or iDrive.
You can also reduce your future paper load by switching to electronic statements and records whenever possible.
How to Help a Hoarding Parent
Dear Savvy Senior,
My dad has always been a pack rat, but since mom died a few years ago he’s become more of a hoarder. The clutter in his house has gotten out of control and I don’t know what to do. Any suggestions?
- Distraught in Centerville
Dear Distraught,
Unfortunately, hoarding or clutter addiction is a problem that’s become increasingly common in the U.S. It effects approximately 6 percent of Americans age 65 or older. The problem can range anywhere from moderate messiness to hoarding so severe it may be related to a mental health disorder like obsessive-compulsive disorder. Here’s what you should know, along with some tips and resources that can help you help your dad.
Why People Hoard
The reasons most people hoard is because they have an extreme sentimental attachment to their possessions, or they believe they might need their items at a later date. Hoarding can also be a sign that an older person is depressed, anxious or showing early symptoms of dementia.
Common problems for seniors who live in excessive clutter are tripping, falling and breaking a bone; overlooking bills and missing medications that are hidden in the clutter; suffering from the environmental effects of mold, mildew and dust, and even living among insects and rodents.
What to Do
To help you gauge your dad’s problem, the Institute for Challenging Disorganization (ICD) offers a free “Clutter Hoarding Scale” that you can download at ChallengingDisorganization.org.
If you find that your dad has a moderate cluttering problem, there are a number of things you can do to help.
Start by having a talk with him, expressing your concern for his health and safety, and offering your assistance to help him declutter.
If he takes you up on it, most professional organizers recommend decluttering in small steps. Take one room at a time or even a portion of a room at a time. This will help prevent your dad from getting overwhelmed.
Before you start, designate three piles or boxes for your dad’s stuff – one pile is for items he wants to keep-and-put-away, another is the donate pile and the last is the throwaway pile.
You and your dad will need to determine which pile his things belong in as you work. If he struggles with sentimental items that he doesn’t use, suggest he keep only one item for memory sake and donate the rest to family members who will use them.
You will also need to help him set up a system for organizing the kept items and new possessions.
Find Help
If you need some help with the decluttering and organizing, consider hiring a professional organizer who can come to your dad’s home to help you prioritize, organize and remove the clutter.
The National Association of Productivity and Organizing Professionals (NAPO.net) and the ICD (ChallengingDisorganization.org) both offer directories on their websites to help you locate a professional in your area.
If your dad has a bigger, more serious hoarding problem (if his daily functioning is impaired, or if he is having financial difficulties, health problems, or other issues) you’ll need to seek professional help.
Talk therapy and/or antidepressants can help address control issues, anxiety, depression, and other feelings that may underline hoarding tendencies, and make it easier for him to confront his disorder.
To locate help, contact Helping Elders Live Productively (H.E.L.P.). This is a free education, counseling, and referral resource that helps older adults and their families who are experiencing hoarding, by connecting them with legal services, mental health assistance and support groups. Call 310-533-1996 for a referral or visit Help4srs.org/support-services-for-seniors-who-hoard.
You can also find professional help through the International OCD Foundation, which provides a hoarding center on their website at Hoarding.iocdf.org.
And to get help with challenging cleanup jobs, the biggest provider is Steri-Clean, Inc. (see Hoarders.com or call 800-462-7337), a hoarding cleanup company that has franchises located throughout the country.
Does Medicare Cover Talk Therapy Services?
Dear Savvy Senior,
What types of mental health services does Medicare cover? I struggle with anxiety and depression, and my primary care provider recommended I see a therapist or psychiatrist.
- Anxious Annie
Dear Annie,
Medicare actually covers both outpatient and inpatient mental health care services and programs to help beneficiaries with anxiety, depression and many other mental health needs. Here what you should know.
Outpatient Coverage
If you’re enrolled in original Medicare, your Part B coverage will pay 80 percent (after you’ve met your annual $257 Part B deductible) for a variety of counseling and mental health care services that are provided outside a hospital, such as in a doctor or therapist’s office, hospital outpatient department or community health center. These services can also be received via telehealth.
You, or your Medicare supplemental (Medigap) policy, is responsible for the remaining 20 percent coinsurance.
Medicare also gives you the expanded option of getting treatment through a variety of health professionals such as psychiatrists, psychologists, clinical nurse specialists, clinical social workers, nurse practitioners, physician assistants, marriage and family therapists and mental health counselors.
To get this coverage, you’ll need to choose a participating provider that accepts Medicare assignment, which means they accept Medicare’s approved amount as full payment for a service.
If you choose a nonparticipating provider who accepts Medicare but does not agree to Medicare’s payment rate, you may have to pay more. And if you choose an opt-out provider that does not accept Medicare payments at all, you will be responsible for the entire cost.
To locate a mental health care professional in your area that accepts Medicare, go to Medicare.gov/care-compare, click on “doctors & clinicians” and type in your location, followed by “clinical psychologist” or “psychiatry” in the Name & Keyword box. You can also get this information by calling Medicare at 800-633-4227.
Inpatient Coverage
If you happen to need mental health services in either a general or psychiatric hospital, original Medicare Part A covers this too, after you’ve met your $1,676 Part A deductible. Your doctor should determine which hospital setting you need. If you receive care in a psychiatric hospital, Medicare covers up to 190 days of inpatient care for your lifetime. And if you use your lifetime days but need additional care, Medicare may cover additional inpatient care at a general hospital.
Additional Coverage
In addition to the outpatient and inpatient mental health services, Medicare also covers yearly depression screenings that must be done in a primary care doctor’s office or clinic. Annual depression screenings are covered 100 percent.
And if you have a Medicare prescription drug plan, most medications used to treat mental health conditions are covered too.
Medicare Advantage Coverage
If you get your Medicare benefits through a private Medicare Advantage plan, they too provide the same coverage as original Medicare does, but may impose different rules and will likely require you to see an in-network provider. You’ll need to contact your plan directly for details.
For more information, call Medicare at 800-633-4227 and request a copy of publication #10184 “Medicare & Your Mental Health Benefits,” or you can read it online at Medicare.gov.
The Surprising Dangers of Earwax
Dear Savvy Senior,
I’ve heard that excessive earwax can cause serious health problems in elderly seniors. What can you tell me about this?
- Caregiving Daughter
Dear Caregiving,
It’s true! Excessive amounts of earwax can indeed cause problems in elderly seniors including hearing loss or ringing in your ears. Some people experience vertigo, which increases the risk of falling. And there’s also a correlation between hearing loss and cognitive decline and depression.
Earwax – which is not really wax at all, but a substance called cerumen that binds with dirt, dust and debris – is normally produced by the body as a way to clean and protect the ears. In most people, the self-cleaning process works fine. But in others, including more than 30 percent of elderly people, the wax collects to the point where it can completely block or impact the ear canal.
Those that are most affected are elderly seniors, especially those living in nursing homes or assisted living centers that provide substandard hygiene. And those highest at risk are hearing-aid users because the devices push wax down into the canal.
Earwax Removal
Usually, earwax moves up and out on its own so the best way to control it is to leave it alone. But that advice can backfire for those who accumulate excessive amounts of earwax.
The symptoms of an earwax problem can include an earache, a feeling of fullness in the ear, hearing loss, tinnitus, dizziness, an ear infection, ear itchiness, or cough due to pressure from the blockage stimulating a nerve in the ear.
If you or your elderly loved one’s experience any of these symptoms, try using a softening agent to help the wax leave the ear or to remove it more easily.
If you prefer the natural route, try baby oil or mineral oil. Using an eyedropper, apply a drop or two into your ear, tilting your head so that the opening of the ear is pointing up toward the ceiling. Stay in that position for a minute or two to let the fluid flow down to the waxy buildup. Then tilt your head in the opposite direction to let the fluid and wax drain.
Or try an over-the-counter earwax removal solution or kit, which are sold in most pharmacies. Solutions may contain oil or hydrogen peroxide, and some kits include a bulb syringe that you squeeze to flush your ear with warm water, if needed.
You may need to repeat this wax-softening and irrigation procedure several times before getting rid of the excess earwax. If, however, the symptoms don’t improve after a few treatments, you need to see an audiologist or ear, nose and throat (ENT) doctor to have the wax removed.
Earwax removal is one of the most common ENT procedures performed. They have a variety of tools that can remove hard, stubborn earwax.
It might be tempting to poke a cotton swab, bobby pin, pencil or finger into your ear to get the gunk out, but don’t go digging. Yes, it’ll remove some of the wax, but it may also push the rest deeper into the ear canal and increase your risk of injuring your eardrum and making the problem worse.
How Seniors Can Get Help Lowering Their Grocery Bills
Dear Savvy Senior,
I would like to find out if my 72-year-old mother is eligible for food stamps or any other type of assistance program. When my stepfather died last year, mom’s income dropped in half and is having a hard time paying her grocery bills. What can you tell us?
- Searching Son
Dear Searching,
There are actually several different food assistance programs that can help lower income seniors with their grocery costs, but what’s available to your mom will depend on her income level. Here’s what you should know.
SNAP Benefits
The largest hunger safety program in the U.S. is the Supplemental Nutrition Assistance Program, or SNAP (formerly known as Food Stamps), but your state may use a different name. While there are millions of seniors who are eligible for SNAP, only around 40 percent (about 4.8 million seniors) actually take advantage of this benefit.
For older adults to get SNAP, their net income must be under the 100 percent federal poverty guidelines. So, households that have at least one person age 60 and older, or who are disabled, their net monthly income must be less than $1,255 per month for an individual or $1,704 for a family of two. These amounts are higher in Alaska and Hawaii. Households receiving TANF or SSI are also eligible.
Net income is figured by taking gross income minus allowable deductions including a standard monthly deduction, medical expenses that exceed $35 per month out-of-pocket, rent or mortgage payments, utility costs, taxes and more.
In addition to the net income requirement, some states also require that a senior’s assets be below $4,500, not counting the home, personal property, retirement savings and most vehicles. Most states, however, have much higher asset limits or they don’t count assets at all when determining eligibility.
To apply, you or your mom will need to fill out a state application form, which can be done by mail, by phone, or online, depending on your mom’s state of residence.
If eligible, her benefits will be provided on a plastic Electronic Benefits Transfer (EBT) card that’s used like a debit card and accepted at most grocery stores. The average SNAP benefit for 60-and-older households is around $105 per month.
To learn more or apply, contact your local SNAP office – visit fns.usda.gov/snap/state-directory or call 800-221-5689.
Other Programs
In addition to SNAP, there are other food assistance programs that can help lower-income seniors like the Commodity Supplemental Food Program (CSFP) and the Senior Farmers’ Market Nutrition Program (SFMNP).
The CSFP is a program that provides supplemental food packages to seniors with income limits at or below the 150 percent poverty line. And the SFMNP offers coupons that can be exchanged for fresh fruits and vegetables at farmers’ markets, roadside stands and community supported agriculture programs in select locations throughout the U.S. To be eligible, your mother’s income must be below the 185 percent poverty level. To learn more about these programs and find out if they are available in your mom’s area, visit fns.usda.gov/programs.
There are also many Feeding America network food banks that host “Senior Grocery Programs” that provide free groceries to older adults, no strings attached. Contact your local food bank (see feedingamerica.org/find-your-local-foodbank) to find out if a program is available nearby.
In addition to the food assistance programs, there are also various financial assistance programs that may help your mom pay for medications, health care, utilities and more. To locate these programs, and learn how to apply for them, go to BenefitsCheckUp.org.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.
