These days, because the costs of living seem to be higher than ever before, a record number of senior homeowners are considering reverse mortgage loans that convert their home equity into available asset. Although reverse mortgages may provide an affordable way to obtain needed funds, they can sometimes turn out to be much more expensive than standard home loans.
Planning Tools
Choose the Right Finanical Planner
It’s been said that the three most important choices you make in life are your spouse, your career, and your financial planner. Since you may have long since chosen your spouse and your career, you may be more interested at this point in choosing the right financial planner.
Residential Care Facilities for the Elderly
As people age, many find themselves needing help with routine types of care getting dressed, bathing, preparing meals or keeping the household clean. Although many older adults either rely on family members or friends or hire at-home care providers, others move to Residential-Care Facilities for the Elderly or RCFEs.
Hiring Household Workers
Many of us need legal, financial, retirement, accounting, estate, long-term care or similar planning services. We seek help from planning advisors possessing the necessary training. Many planning advisors are well-qualified, capable, and make fair disclosure of pertinent information to their clients. Unfortunately, unqualified or dishonest individuals masquerade as expert planning advisors. Many of them provide sub-standard services or have hidden financial motives in providing their “planning services.”
Is Long-Term Care Insurance Right for You?
Many seniors mistakenly believe that Medicare will cover most of their future health care costs. Unfortunately, Medicare coverage for long-term care is very limited. For example, should a Medicare recipient require skilled nursing home care after undergoing surgery, Medicare’s coverage will not exceed 100 days.
Who Will Manage My Finances?
Hopefully, you’ll always be able to handle your own assets and finances. If, however, you became incapacitated, how would your assets and finances be managed? What about your home? Your IRA? Your bank accounts? Depositing your checks? Arranging and paying for home care? Paying your bills? Filing and paying your taxes?
Think Twice (or More) Before Giving Away Your Home
Many people, as they grow older, consider giving away their homes during their lifetimes. We call this a “lifetime transfer” and contrast it with a transfer to heirs that becomes effective at death. When thinking about a lifetime transfer of their homes, people often consider things like avoiding probate, having someone else take responsibility for upkeep, helping a family member, or encouraging someone to live with them and provide care to them. Sometimes they believe that if they need nursing home care, Medi-Cal will take their homes from them.