By Anne Hartline, Surviving Spouse Advisory Committee member

Managing finances is overwhelming to many. For peace of mind, we need to calculate our cost of living, look at how much we can spend, and make a plan to live within our means. The MOAA website offers assistance in calculating financial status, and USAA also provides assistance online. For some, needs might best be met by hiring a professional financial planner and an accountant. It’s critical to check credentials of these individuals and the firms with which they are associated. Regardless of family configuration, it’s essential to have a current will and health care directives prepared by a reputable attorney who has knowledge and experience in wills, trusts, and directives.

Calculating cost of living can be achieved several ways. Most credit card companies will provide an end-of-year printout of expenditures in categories such as food, gasoline, and clothing. Pharmacies also will provide medications purchased and costs for the year. Bank statements are another source.

A financial planner will provide statements on spending from investment income and your portfolio. After determining what you’re spending, you can compare your income with income tax statements of your earnings. As a result, you can plan to adjust spending as needed.

An experienced financial planner can help you understand how to enjoy money that you have saved while carefully protecting your investments. This professional will plan a diversified portfolio based on your personal assets and goals. Most welcome initial consultations and then charge a small negotiable fee for services. An accountant will prepare income tax reports and assist in planning for payment of taxes, including estimated taxes if applicable. This professional can advise on using standard deductions or itemizing deductions for calculating taxes. If itemizing, be sure to research what can be included in addition to property taxes and charitable giving, like mileage incurred driving to medical appointments and to volunteer sites, which can add up significantly.

The ultimate goal is to live within your income with savings in place for emergencies. This can be achieved through seeking information, hiring help as needed, and making a plan.