Senior Care Homes-Care and Housing Options in NJ

Many times, adult children of seniors find themselves playing the role of advocate to obtain care of parent. This may begin when a parent becomes ill or injured and has to be hospitalized or you may see that your parent is declining and can no longer be alone and will require ongoing care. What do you do then? So many people, it’s like a “trial by fire”, trying to learn the language of senior care homes options in order to make the best decision for their loved one. Understanding the different senior care terms can make this an easier task.  

Rehabilitation/Sub acute Care Center-this type of facility provides short term therapeutic care for patients once discharged from the acute care of a hospital. The therapy provided includes physical therapy, occupational therapy, and speech therapy. A typical stay in a rehab center is usually about two to three weeks. The goal is to restore the patient to normal capacity.

Home Care-also known as senior in home care or home health care. This type of service provides a range of services that include assistance with bathing, toileting, dressing, and ambulation. Home care can also include meal preparation, light housekeeping and laundry services. In-home care can be provided for a few hours per day or on a 24 hour per day basis depending on need.

Adult Day Care/Medical Day Care-a protective environment for seniors needing a structured program. Services for adult day care vary from custodial care, offering stimulating activities for independent seniors along with meals, to an adult medical day care which provides activities to seniors with medical needs.  Seniors are usually brought to an adult day care program in the morning and leave in the evening. Transportation to and from the center is often available.

Assisted Living-is a combination of housing and personal health support services for seniors. Services in an assisted living usually include:
-private or semi-private apartment
-emergency call systems
-daily meals served in a common dining room
-social and recreational activities
-transportation
-assistance with personal care
-medication management
-24 hour staff
-laundry and housekeeping services
In addition, many assisted living facilities have a secure unit for memory impaired seniors.

Nursing-Convalescent Home/Skilled Nursing Facility-For those with a need for more acute care, a nursing home provides patients with 24 hour care. This type of facility is generally for patients requiring ongoing skilled care such as bathing, toileting, dressing, as well as assistance with ambulation. Medical supervision and rehabilitation services are also provided.  

Continuing Care Retirement Community (CCRC)-a community that offers multiple levels of assistance to seniors. Levels of care range from independent living, assisted living and nursing home care. A CCRC provides a continuum of housing and health care options on one central campus.  Seniors who opt to live at a CCRC usually sign a long term contract (often the length of a resident’s life). This offers the senior the peace of mind that they can receive housing and assistance at one site, as their needs increase.

Home Health Care v.s. Facility Placement : Options in Elder Care

It always makes me sad to hear the families of an elder say “Mom made me promise to never put her in a nursing home”. That is simply a promise that most families today cannot keep. If a caring son or daughter finds that they have to break that promise, they may feel guilty for the rest of their lives. Mom probably asked for that promise because the nursing homes she remembers were dark, institutional places which would be considered substandard in America today. Today’s family structure and the financial challenges of elder care, make facility living a very common choice. When an elder shows signs of not being able to perform the basic activities of daily living, families or concerned professionals must step in. It is actually against most state laws for a professional to be aware of an elder in trouble without taking some reasonable action to secure their safety. There are many indicators that an elder is no longer safe at home alone. The basic litmus test is to ask yourself is: “Could this person save him or herself if their home were on fire? Would they be able to call 911 and communicate their exact location? If left alone for any period of time are they at risk for physical abuse or financial exploitation? Do they have the skills and resources to meet their daily hygiene and nutritional needs? The answer is “NO” for many American elders who live home alone.

Independence vs. Isolation

Many of my elderly clients who were trying so hard to maintain their independence by living alone at home actually maintained nothing more than an isolated existence punctuated by the occasionally call or visit from friends and family. This type of isolation was also coupled with medication errors or abuse, self neglect and unsanitary housekeeping. A person living in this situation will often “bloom like a flower” in the right retirement facility environment. It is amazing what three hot meals a days, social interaction, clean sheets and regular administration of medications can do for a person’s mind, body and spirit. A person who lives alone is more likely to fall and lay alone on the floor for days without being found. A person, who lives alone may make poor choices such as keeping, (or worse,) spoiled food in the refrigerator. If a person lives alone, there are many signs of illness that no one will notice during sporadic short visits. Medical appointments may be missed and prescriptions left unfilled. Many people feel that they are honoring their aging loved one by letting them live alone, even though all the tell tale signs of self neglect are apparent. There is no honor or dignity in being found on the floor after one has laid in their own excrement for three days. Unfortunately, many families will wait for this type of incident before insisting on either home health care or facility placement. If an elder is physically or verbally abusive to family and care givers, they are much more likely to be left alone to make their own decisions, regardless of how dysfunctional their situation may be. Elders with difficult personalities are many times more likely to be abused by caregivers. They need more supervision, not less.

American Family Dynamics and the Pressures of Today’s World

I hear people say “Americans don’t take care of their elders like other countries do”. Well that is not my experience. The adult children who consult with Geriatric Care Manager or other eldercare professionals are very concerned about their parents. They love them and they want the best care their money can buy. That’s the clincher: what their money can buy. In America, caregivers, maids, etc,, are expensive. Perhaps in another country where slave labor is commonplace, people can afford plenty of care. But in this country it costs $12.00 per hour (or more) for a home health aide. At eight hours per day, that is $96.00 per day. That is $2,880 per month or $34,560 per year – more than the average working American earns per year. The average woman gets a social security check of less than $500.00 per month. Do the math and you will soon see that unless you are wealthy, many people cannot afford to keep their elders in their own home with a part time caregiver or even in their children’s home with a caregiver.

Now couple this financial problem with another very real problem. Most middle income women in their fifties, who are caring for their elderly parents, are also trying to hold down a job, help their young-adult children and maintain a marriage. If a middle income woman stops working to care for her parents, she and her husband either cannot pay their bills or they must significantly reduce their standard of living. I know a few husbands who are fifty-something and feel they have worked too hard and too long to have their dreams of retirement evaporate because someone else’s needs are suddenly more important than their own. Now that Americans have come to grips with the concept that it takes two incomes to live well in this country, they are more determined than ever to have a retirement. Paying $35,000 per year for a caregiver can take a huge chunk out of the retirement savings. Frankly, most people couldn’t afford to do it even if they wanted to. Because most Americans’ net worth is in the equity of their home, selling the family home is the most common way to finance elder care services. If the family home sells for $100,000.00 and the average cost of an Assisted Living Residence is $36,000.00 per year, an elder can afford to live in that Assisted Living for 2.7 years. Coincidently, the average amount of time a person lives in an Assisted Living before moving on to a nursing home is 2.5 years.

Many adult children, who do have the desire and financial means to bring their elders to live with them, still cannot. They cannot because the medical or psychological needs of the elder are beyond their capacity to manage. For example, if Grandma is sweet and docile by day, but “sundowns” or grows agitated as evening falls, this poses a difficult problem for the caring family. When some people experience dementia or other medical issues, they may stay awake all night. They sometimes wander out of doors or rummage through drawers and closets. This behavior will keep the whole family awake at night. If a working family cannot sleep at night, this situation will become intolerable very quickly. Some adult children have been raised by violent, aggressive parents who are now violent aggressive elders. Children who have been raised under these conditions need not feel obligated to bring their parents to live with them, despite the pressure they may get from outsiders who do not know the real story.

Elders and their families who are trying to make difficult choices about elder care benefit from a professional assessment from a geriatric specialist. Professional care managers can offer an objective opinion based on a clinical evaluation of the physical and cognitive status of the elder. Physicians, hospital case managers, facility admissions coordinators and social workers can also offer advice about appropriate placement of an elder or even suggest how to set up services in the home to best meet the elder’s needs.

Home Health Care – Stay Home without Being Alone

At the very least, any elder living alone should have a medical alert system. This is a necklace or wrist band with a panic button that can be pushed in case of emergency. If the button is pushed a dispatch center receives the signal and makes and attempt to communicate with the elder through a speaker placed in the home. If the elder needs help or does not respond to attempts to communicate, emergency services will be dispatched to the home. Many services will also contact friends and family to notify them that assistance is needed. A good candidate for this device is one WHO DOES NOT have memory loss as memory loss makes it difficult to learn to operate new appliances.

There are two basic types of home health care services: Medicare and Private Duty:

Medicare Home Health is free but can only be accessed if ordered a physician. Medicare will only authorize the free home health services if specific events have happened such as a recent hospitalization lasting three or more days, or a recent change in health status, etc. Medicare will send a Registered Nurse to evaluate the elder and that nurse decides if other professionals such as physical therapists, social workers, dieticians, etc. should perform evaluations. Each professional will determine what services they will render and for how long. Medicare services are temporary in nature and are not offered on a full time basis. The average visit by the nurse, aide and therapist is less than one hour each. Even Medicare home health aides only stay long enough to bathe and dress the patient.

Private Duty Home Health can be arranged on a full time, part time or live- in basis. Many Long Term Care Insurance policies will pay for home health care. The amount of care one can get and the duration of the services varies depending upon which policy they purchased. If someone does not have insurance, they must pay out of pocket (or private pay) for any services. Typically a private home care agency will offer services at a minimum of four hours per day. Typical eight hour shifts are 7am-3pm, 3pm-11pm and 11pm – 7am. Many elders complain that an agency sends them a different caregiver each day. In order to avoid having the same aide, that as much as possible, order care every day for at least eight hours. This will allow the agency to schedule the same person for all your shifts. Because labor laws do apply and the agency would have to pay overtime for time which exceeds 40 hours per week, you will most likely have at least two to three caregivers on a full time case. The average hourly rate is $14.00 per hour. A live-in will cost about $150.00 per day. A live-in lives in your home and drives your car (or theirs for a mileage fee) and you are expected to feed them as well, even if you go out to dinner. By law, a live- in is entitled to two hours per day of free time. They can do what ever they like, including leaving the house during their break. If this arrangement will not work for your situation, consider hiring an aide around the clock. Around the clock care is typically delivered in two twelve hour shifts which are done by two different caregivers.

One aide comes to the home from 8am until 8pm and is relieved by the second caregiver at 8pm until 8am. Around the clock care can be delivered in many schedule formats. A live- in is expected to have their own private bedroom and bathroom although many agencies are flexible on this issue. The live- in is expected to be awake all day and have at least 7 hours of sleep at night. If the elder does not sleep at night, a live- in arrangement will not work. One option is to have the live in ($150/day) plus hire a caregiver to come to the house and stay up all night with the elder ($14.00. hour for eight nighttime hours). This costs $112 + $150= $262.00 per day. The only other alternative is to have around- the- clock care which will cost $14.00/hr X 24 hr=$336/day. Adding the eight hour night shift to the live in, saves about $3,000 per month. The Veterans Aid and Attendance Pension is available to qualified veterans who need a caregiver in their home on a regular basis.

Types of Adult Housing and Facilities:

Independent Living Facilities usually offer small apartments with some meals included in the price. A person who lives in an Independent Living Facility is expected to manage their daily care needs on their own, but the staff would readily recognize if needs increased and assist the resident in obtaining the needed help. Some facilities have extra care services available for additional charge to help the resident “age in place.” Others may ask a resident to move out if their needs exceed the scope of that particular facility. Limited transportation is usually provided although many residents are still driving when they enter an Independent Living Facility. These facilities may cost anywhere from less than $1,000 per month to over $5,000 per month depending upon the luxury amenities and location.

Assisted Living Facilities usually offer hotel size rooms with the option to share a room or pay extra for a private room. Three meals and snacks are usually provided as part of the price. Residents are expected to need some assistance with their daily care needs. Medication administration is strictly supervised. The State laws dictate who can live in an Assisted Living. The State does not want Assisted Living facilities to house nursing home candidates or Nursing Homes to admit people who could function just as well in an Assisted Living Facility. Assisted Living residents must be able to walk and transfer ( from bed to chair or chair to standing) with the assistance of only one other person. An Assisted Living resident can be left alone in their room for two hours or more. Nurses aides are on duty around the clock. Registered nurses or Licensed Practical Nurses are on duty at least during the daytime. Many medical services may make rounds and visit residents at least monthly. It is not uncommon for an Assisted Living resident to never have to leave the building for a medical or beauty appointment. Prices may range from under $1200/month to over $8,000/ month, once again depending upon the amenities. Medicaid has a program called the Medicaid Waiver which can pay part of the cost of the Assisted Living. However, funds have been historically limited and waiting lists can be long. The Veteran Aide and Attendance Pension is designed to financially assist qualified veterans who need the services of an Assisted Living facility

Dementia Specific Facilities are designed especially for the memory impaired resident. The building, floorplan, furnishings, décor, activity program and even the lighting have been scientifically engineered to enhance the lifestyle of residents with dementia. Many Assisted Living Facilities and Nursing Homes offer a dementia program or dementia unit, but there are entire facilities which specialize in this unique population. Dementia Specific Facilities can be either Assisted Living Facilities or Nursing Homes. They are secure in order to prevent residents from wandering off the property and getting hurt or lost. The price for this extra level of care is usually about $1,000 to $2,000 more per month than a non-specialty building.

Nursing Homes are State regulated and are inspected at least annually. A person who needs a nursing home generally cannot live safely in an Assisted Living environment. A typical resident is either wheelchair bound or bed bound. Those who can walk around freely may need the nursing home environment because they need constant medical supervision. The medical component of this environment is similar to a hospital or hospice setting. The emphasis is on rehabilitation or custodial care rather than socialization and activities. The ICP Medicaid Program (institutional care program) will pay for the room, board and medical costs of those residents who meet the financial and medical criteria. It is possible to plan in advance to help an elder meet these strict criterion.

Financial Realities

Keeping an elder at home with a caregiver can be the most expensive option of all. Many families feel keeping their loved one in the comfort of their own home is priceless. If a paid caregiver cost $14.00/hour, eight hours per day is equal to $2,880.00 per month. Around the clock care exceeds $10,000 per month. Independent Living Facilities cost an average of $2,300.00/ month and provide no personal assistance. Assisted Living Facilities range from about $2,500/month to $5,000/month and provide limited care. A Nursing Home (without ICP Medicaid assistance) can cost from 5,000.00 to $7,000.00 per month and will provide total care.

Anyone considering hiring home health or moving an elder into a care facility of any type should have their elder’s current needs assessed by a qualified professional who can ascertain the elder’s current medical/psychological and financial needs and anticipate future needs/solutions. With careful, realistic planning, caring for an elder does not have to be a financial or emotional nightmare. Making the right choices for you and the elder you care about is easier when you enlist the help of people who know the eldercare community and all that it has to offer.

Consider all the Seniors Housing Options for Your Eldery Loved One

There are many different seniors housing options that you may consider if an elderly loved one has reached a point in their life where they can no longer live on their own without any assistance.  There is home healthcare if you just need someone to help with the medical needs and everyday activities of a parent or other relative, so they can stay in their home safely and comfortably.  If your elderly loved one has very specific medical needs that must be met every day, you may also consider a skilled nursing facility.  There are also senior residential communities that allow the senior to live independently, but still provide the care that they may need from time to time.

If you think that seniors housing might be the right choice for you and your loved one, you will need to think long and hard about their unique needs before making a decision.  If your loved one needs custodial care or rehabilitative care, the skilled nursing facility is probably the right way to go.  These facilities are licensed to provide physical, occupational or speech therapy, as well as specialized care for Alzheimer’s patients.  Many of the modern facilities also provide social, recreational and spiritual activities, though, so it isn’t just like living in a hospital like many people might fear.

Home healthcare might also be a good option if your budget allows.  This will allow your loved one to stay in your home or their own home even though they have medical needs that must be met every day.  Once their needs for assistance become too great to manage, however, you might have to consider moving them into a facility where they can get the help they need.  It might also be better for them to be surrounded by other seniors, especially if they live alone.   

If your loved one is in fairly good health, there are many types of seniors housing that might be more appropriate for them.  There are adult family homes, independent living communities, and continued living facilities that provide many different levels of care so they can remain there even if their medical condition changes and they need more daily assistance.  There is also subsidized senior housing where little to no services may be provided, but there is a community of people surrounding the residents who are all going through the same stages in life.

Weighing Your Home Ownership Options In Golf Course Communities

Golf course communities are the perfect option for many golf enthusiasts. Some offer a luxury cabin with a view of the mountains while other golf course homes let you gaze out over the greens while still being close to all of the amenities. Whether you are looking for a great place to vacation or just want to live closer to the course, these types of neighborhoods give you a wide variety of options to choose from.

Community Types

Years ago, golf course communities were solely reserved for middle to high-level incomes and were often restricted to people of retirement age. Today, some of these areas are still restricted while others are open to people from all walks of life and all ages. Some golf course homes attract many different types of people, from young families to single retirees, in order to create a bright and thriving community. This allows you to experience the advantage of diversity such as several of the communities in Teton Valley. Real estate that is generation-restricted accepts people with certain needs and interests so they can offer them a wide range of options in these areas.

Location vs. Family Needs

In order to be completely happy with the golf course community you choose, the location of your new home needs to meet the particular needs of your family. For working families, being close to a job and recreational facilities is a huge benefit. For those looking to retire on the other hand, warmer climates and the distance from health care come into play. If you like to ski in the winter, look at mountainous regions such as Teton Valley. Real estate decisions can also include factors such as the local nightlife or special interest groups.

If you are searching for golf course homes purely for vacations, consider what type of climate you prefer and what sorts of activities you would like to partake in. Another area to consider is the people around you. Are you single and looking to socialize with other area singles your age? Maybe you would like a group of fellow golfers to spend time with who have other interests in common.

The Style Of Golf Course Homes Available

Golf course communities provide you with several different housing options. Single-family homes, duplexes, and apartment complexes are commonly available in a wide variety of sizes and floor plans. Other golf developments offer unique options like some of those in Teton Valley. Real estate options in this region include rustic lodges, quaint cabins, and ranch estates.

The type of purchase also varies. Some of these developments are condominiums that require you to pay a monthly fee for the upkeep of the grounds and facilities. Others are member-equity owned where you purchase a portion of the development and share it with the other owners by making a reservation.

Golf course communities are ideal for combining the love of golf with your daily life. You can choose to live in a cabin nestled in the mountains, or you can live along the waterfront right next to the green. Once you have looked at all of the options and decided what you need, the hard part begins – trying to choose just one!

Senior Assistance-Care Options

Locating appropriate senior assistance for your elderly loved one can be a daunting task. This can be especially true when you are not familiar with your care and housing options. It can be overwhelming when you hear senior care related terms such as sub-acute care, independent living, assisted living, residential care, or continuing care facility.

Understand the variety of senior care options and related terminology can ease your way as you navigate your way. The following are some of the common terms and service options you may encounter and want to become familiar with.

Adult Day Care/Medical Day Care-a protective environment for seniors needing a structured program. Adult day care services vary from custodial care, offering stimulating activities for independent seniors along with meals, to an adult medical day care setting which provides activities to seniors with medical needs. Seniors are usually brought to an adult day care program in the morning and leave in the evening. Often times, transportation to and from the center are available.

Assisted Living- is a combination of housing and personal health support services for seniors. Such services usually include:

Private or semi-private apartment Emergency call system Daily meals served in a common dining area Recreational and social activities Transportation Personal care assistance Staff available 24 hours Laundry and housekeeping services Secure unit for memory impaired residents (at some assisted living communities)

Continuing Care Retirement Community (CCRC)- a community that offers multiple levels of assistance to seniors. Levels of care range from independent living apartments, assisted living and nursing home care. A CCRC provides a continuum of housing and health care options on one central campus. Seniors who opt for CCRC living usually sign a long term contract such as the length of the resident’s life. The benefit of this type of care is that it can provide peace of mind that housing and medical assistance will continue to be provided at one site as needs increase.

Home Care- also known as senior in home care or home health care. This type of service provides a range of services that include assistance activities of daily living such as bathing, toileting, dressing, and ambulation. Home care can also include meal preparation, light housekeeping and laundry services. In-home care can be provided for a few hours per day or on a 24 hour basis.

Nursing-Convalescent Home/Skilled Nursing Facility- for those with a need for more acute care, a nursing home provides patients with 24 hours care. This type of facility is generally for patients that will require skilled care ongoing. This type of facility provides medical supervision, rehabilitation as well as bathing, toileting, dressing, and assistance with ambulation.

Baby Boomers Still Fueling Florida Real Estate Options

Whether it is buying a second home or acting on the long-planned dream of retiring to a sun destination, Baby Boomers are moving to Florida to take advantage of a well-deserved rest from the corporate world, or other nine-to-five path they had been on. The current excess of properties at reduced prices in Florida provides a perfect opportunity for new retirees to purchase a home and join the fun in an active community.

Of course, the old adage “location, location, location” still applies when purchasing a retirement property in Florida. Baby Boomers are at an age where they can take advantage of activities such as golf, water sports, biking and other outdoor adventures. The life span for healthy Baby Boomers will allow them to still be celebrating birthdays long into their 80s or 90s. However, aging also means needing easy access to medical facilities, which is part of their decision making when purchasing homes in Florida.

As one of the largest demographics in the country at roughly 28%, or 74 million adults born between 1946 and 1964, Baby Boomers were part of the “me generation” and had access to a plentiful job market and a good economy in the 1980s. This allowed people to get into their first home and they took advantage of the rise in real estate. Many people succeeded in putting away funds for retirement and are now reaping the benefits of good planning. Being able to sell their home at a significant profit has further allowed Baby Boomers to purchase their retirement residence in the destination of their choice.

You know a topic is current when there is a conference promoting the subject, like the 2010 Florida Boomer Lifestyle Conference. This event highlights the state’s lifestyle offerings and shines a light on how vibrant this generation is today, and how it will be in the years to come. As the saying goes, “60 is the new 40.” Baby Boomers are taking advantage of all that life has to offer, from education to travel to starting their own businesses. Buying a home in a sun destination is just one piece of their retirement plan.

Many promotional pieces show images of couples enjoying retirement activities, but there are also many single men and women who, after years of marriage, are living the single life and enjoying every minute. These people are Baby Boomers who are also looking into purchasing homes in retirement communities, where they can join in on activities with other adults, either singles or couples.

Information options for Boomers wanting to retire in Florida include a number of books and websites devoted to the topic. In the spring of 2004, a Baby Boomer survey was conducted and it noted that 55 percent of boomers would move when they retire. They plan to purchase a home in an Active Adult Community, and Florida is an ideal choice with its sunny climate and plethora of activities for men and women. Recently, a retirement-based website stated that six Florida cities made the list for 20 Most Affordable and Best Places to Retire.

Senior Housing Options to Explore and Understand

As America ages, more and more elderly people every year are faced with the need to make a lifestyle change. However, many are reluctant to face this change because they are operating on an out-of-date paradigm, typically envisioning a musty, run-down “old-folks home” as the only option.

And 50 years ago they might have been right. But retirement communities are much different now… and they aren’t the only alternative either. While the senior housing market is vast and ever changing, below is a brief summary of the most common options for people to understand and explore as they thinking about making a lifestyle change.

==Make no changes, stay in home==

This is a viable option and needs to be carefully evaluated. Some people will put a qualifier to the decision, e.g. until I need assisted living, until I can’t drive, until my spouse dies. Even if you or your parents decide this option is best, re-evaluate it periodically as changes occur in life to be sure it is still the best and safest option.

==Downsize to smaller home==

Another option to explore may be to simply unload the larger home and downsize to a smaller home, apartment, condominium or townhouse. Carefully consider age and how many more times you or your parents want move.

==Move in with family==

My experience has been that most people in this day and age would prefer not to do this, yet it is an option that many families embrace. It may need to be seriously considered for financial reasons. Others accept this as part of their cultural or family traditions. Today’s hectic pace of family life can present challenges for both young and old, especially if both spouses are working and there are young children in the household.

==Move to an Active Adult Community==

Active Adult Communities for ages 55+ are popping up all over the country. As the first wave of baby-boomers turn 60, they hope to capture this massive wave of aging America. An Active Adult Community will be the same as traditional real estate, but with access to senior-oriented activities and without teenagers or toddlers living next door.

==Move to a Retirement Community==

The differences in retirement communities will be around how they are paid for and what, if any, future long-term care services may be included. The setting will be designed with the aging process in mind—grab rails in the tub/shower areas, no stairs, wider doorways for walkers, wheelchairs or scooters, etc. The community may include apartment homes, townhouses with all living and laundry on one floor or variations of the lifestyle called villas, cottage homes, duplexes or the like. The verbiage may change but the concept remains the same. The most common types of Retirement Communities are:

~~~The Rental Retirement Community: The resident pays for the cost of living in the community on a month-to-month rental basis. The community may have just independent living or it may also have assisted living and/or long-term care. The defining factor here is that the resident pays rent.

~~~The Continuing Care Retirement Community (CCRC): “Continuing Care” means there is Independent Living, Assisted Living, and Skilled Nursing care all on the same campus or in the same building. Most frequently the consumer will find the CCRC requires an up-front investment, often referred to as an Entrance Fee, and a recurring Monthly Fee that includes services and amenities. This option involves various types of contracts referred to as “Residency Agreements” and is usually the most complex for the consumer to grasp.

~~~The Retirement Community with limited services: There continue to be many new versions of the retirement community lifestyle springing up in the market with variations on the how the resident pays and what they get for what they pay. Many times they will look and feel similar to the models mentioned above, but simply have fewer services. This may include some enhanced common areas but perhaps no 24-hour security, no staff or transportation on weekends, no health care components, etc.

Whichever option seems right to you, be sure to evaluate your own risk and value judgments, and discuss the change with those you love and who will most likely be your support network as time goes on.

Retirement Planning – 2 Options To Consider For Successful Retirement

If you’re coming up to retirement age and worry about maintaining meaning in your life once you exit the work force then don’t.

There are several great options to consider as part of your retirement planning. Today, people are living longer thanks to modern medicine and advances in nutritional research and while this is great in a sense, it means making your retirement planning count much more as your nest egg needs to sustain you for a longer period of time.

The problem is though as a baby boomer, you’re not ready to accept old age. This means as a baby boomer you’re also part of the largest spending group in human history which means you may have been a little extravagant with your money. But that’s the nature of many boomers who refuse to let old age become an obstacle in their quest to enjoy all life has to offer.

So what can you do to give your life more meaning in your retirement years. Let’s take a look at just two options you should consider.

Phased Retirement

This is going to become a “biggie.” Phased retirement is still basically a term but will gather momentum during the next few years as boomers hit retiring age.

Basically, phased retirement will give you the opportunity to continue to work in some capacity past whatever age you decide to retire. There will be a broad range of options available. Here are some of them:

- you could consider a new part-time career

- you could take on seasonal work

- establish a flexible work schedule with your current employer

- stay with your current employer or former business as a consultant

- sell your business but stay on in a part-time basis

- take a year off before returning on a part-time based

The idea of phased retirement is to not only ease one into their golden years but to also maintain security in the shape of income. Yes, there will be tax and pension considerations but phased retirement is still basically at birth stage with many issues to be sorted out.

Join A Community

Going online and becoming part of a thriving community is a choice many smart retirees will make and will form part of retirement planning options.

For example, membership sites online offering everything from health and fitness news, financial news, income opportunities and lifestyle information will become big business in the not too distant future.

Becoming part of one of these online communities is a great way to develop new friendships, not just in your own country but around the world. Forums within these online communities will be a safe and effective way of meeting up with other smart retirees.

Options for Retirement Planning

Credit Cards: Having a credit card is often a necessity for most senior citizens – from paying for medicine and emergencies to booking a vacation. But for seniors living on a fixed income, there are concerns about carrying a large balance from month to month and running up significant interest charges. In the worst cases, the debt becomes unmanageable and a major source of stress for the account holder and the family.

Another problem for seniors is having too many credit cards. That’s because the more cards you have, the more opportunities you have to get into debt. And that possibility could make it tougher for you to get the best deal the next time you apply for a loan, insurance, a mortgage or an apartment. Having a lot of cards also can make it harder to keep track of when your monthly payments are due or to even realize that a thief may have stolen one of your cards.

Home Equity Loans and Lines of Credit: These are loans that use the equity in your house as collateral and often are tax deductible (check with your tax advisor). The equity refers to the difference between what you owe on a house and its current market value.

A home equity loan is a one-time loan for a lump sum, typically at a fixed interest rate. A home equity line of credit works like a credit card in that you can borrow as much as you want up to a pre-set credit limit. The interest rate for a line of credit usually is variable, meaning it could increase or decrease in the future.

“For elderly people on a fixed income who have paid their mortgage in full or whose mortgage is almost paid in full, home equity loans are tempting to use to pay for expenses, but they can also be dangerous,” warned Janet Kincaid, FDIC Senior Consumer Affairs Officer. “In the worst-case scenario, if you are unable to make the required loan payments, you could lose your home.”

In general, the best uses for home equity-type loans are to purchase goods or services with long-term benefits, such as home improvements that add to the value of your property. The riskiest uses of home equity loans include a vacation or a car because you could end up paying a lot in interest charges for a purchase that’s only of short-term value or has gone down in value. Also beware that some unscrupulous people or companies (including home repair contractors) push high-cost, high-risk home equity loans to elderly people and other consumers.

Reverse Mortgages: These are home equity loans available to homeowners age 62 or older. In general, a reverse mortgage is a loan that provides money that can be used for any purpose, and the principal and interest payments typically become due when you move, sell your house or die. A reverse mortgage also differs from other home loans in that you don’t need an income to qualify and you don’t have to make monthly repayments.

While reverse mortgages can be a valuable source of funds, they also have serious potential drawbacks. In particular, you will be reducing your equity, perhaps substantially, after you add in the interest costs.

“Reverse mortgages can help in some situations, such as when you have large medical bills that are not covered, to make major home repairs or to help people on low fixed-incomes make ends meet,” said Cynthia Angell, a Senior Financial Economist at the FDIC. “However, you are reducing your ownership share of the home. That means the inheritance you are leaving to your heirs could be greatly diminished or you could have far less money available for other purposes, such as buying into a retirement community later on. That’s why a reverse mortgage should usually be used as a last resort, not as an integral part of a retirement strategy.”

Also, Angell said, the fees can be high, and that could make a reverse mortgage a poor choice to cover relatively small expenses.

Life Insurance: People mostly think about life insurance as a source of income when someone dies, but they forget that many insurance policies also can be a source of cash at other times.

If you have a life insurance policy with built-up cash value, you can borrow against that money and either repay the loan with interest or reduce the death benefit accordingly. Example: If you have a $100,000 life insurance policy but you owe $20,000 on a loan from that policy, your heirs would receive $80,000 as the insurance payout.

There are other options reserved for people who have been diagnosed with a terminal illness and have run out of other ways to pay their expenses. One example is a life insurance policy that can pay “accelerated death benefits” to an eligible policy holder – generally up to about 50 percent of the face value of the policy – in either a lump-sum payment or monthly payments that are deducted from the policy’s face value. When the policy holder dies, the rest of the death benefit is paid out.

Another possibility is to “sell” your life insurance policy to obtain a lump-sum of about 40 to 80 percent of the face value in exchange for the right to receive the full insurance payout when you die. This is known in the insurance business as a “viatical settlement.”

These and other options for tapping life insurance policies can be complicated (including tax and other implications), and they are not right for everyone. Consider getting guidance from your state government’s insurance regulator.

Assisted Living Options

 

When many people think of assisted living, they think of a large apartment building where seniors live and receive help with activities of daily living or other care needs. While this is certainly not incorrect, there are other types of senior housing communities which provide assisted living type care in a different setting.

 

A large portion of the nation’s senior housing providers are small residential homes, often with live-in caregivers. These small residential care homes generally only have room for less than 10 residents, creating a significantly different feel than a large assisted living community. Often called adult family homes or adult foster care, these communities provide care similar to traditional assisted living communities in a home-like atmosphere.

 

Increasingly, assisted living care is being found on a large campus along with independent living and skilled nursing facilities. Called continuing care retirement communities (CCRCs) these communities offer residents a way to age in place, transitioning from independent living, to assisted living to skilled nursing as necessary. The assisted living portion of a CCRC is often very similar to a stand-alone community.

 

Assisted living communities are a great option for seniors who may need some help with maintaining their daily routine. Knowing the different options available can ensure that seniors select a community that best fits their needs and desired lifestyle. Snapforseniors.com has an extensive glossary which can help you learn more about the different options for assisted living type care.

 

For further details about assisted living,senior living, retirement homes, assisted living and senior care services visit Snapforseniors.com