Delores Peich
(909) 931-2822

Senior Living Placement, Referral, & Advisory Services Completely Free.

 

NEWS SENIOR CARE

What’s it REALLY going to cost when we NEED the help?

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So, I was in a breakfast meeting the other day, and my friend Kevin (who is also my financial planner) was talking about retirement planning, and strategies to make sure we have ‘enough’ to actually retire…in the not so distant future! Many of us have waited until our 40′s or 50′s to SERIOUSLY start making a plan, so in 15 years or so, we can actually retire and start doing some things we have always wanted to do. Some of us have already done some of our bucket list trips, but the majority of people in my circle are putting these indulgences off so that they are ‘prepared’ to do them on a ‘retirement’ income.

So…we start IRAs, we add to our 401K, we put a little extra in savings, with our eye on “the prize”…retirement. But what happens if we need MORE than we plan on having? What happens if our spouse becomes sick or develops a health issue that requires additional care, either in the home or in an assisted living community? Most of my friends have not really thought about that potential scenario, and it’s something we need to talk about.

 

With yesterday’s announcement that deaths from Alzheimer’s Disease are second only to cancer deaths, it is a growing concern that we all need to explore. People with Alzheimer’s or dementia can live in their homes for quite awhile, but at some point it almost always becomes necessary to recruit either in-home caregivers or make a move to a secure Alzheimer’s care community so all needs can be met. I’ll bet most of my friends have no idea what these types of services cost…so I thought I’d give you a little info. I want you to keep in mind that the numbers I’m about to give you are TODAY’S numbers, and we will have to calculate in a 3% inflation/increase per year on average.

  • One in Eight Americans currently has Alzheimer’s or dementia right now.
  • Death from Alzheimer’s is now the third leading cause of death, behind Heart Disease and Cancer…scary.
  • Every 68 seconds, someone in the US is diagnosed with Alzheimer’s
  • Adult Day Care for someone with health needs (so you can continue to work) is approximately $70/day (so for a 5 day work week, we’re looking at a cost of $1400 a month).
  • Assisted Living Communities average $3477 a month (that’s $41,724 per year)
  • Alzheimer’s Care Communities average $4619 a month (that’s $55,428 per year)
  • Skilled Nursing Facilities (for a higher level of care) run $79,000-$87,000 per year.
  • I can only speak for myself, but I don’t really have that kind of money lying around, just in case I need it, long term, in the future…do you?

Are we prepared? Do we have a plan to increase our ‘scheduled, planned retirement accounts’ to accommodate care of a loved one? What do we do to make sure we are ready, prepared and able to handle this dilemma? Now, I know, some of us will be incredibly lucky and live out our days in perfect heath, but we all need to take a moment and really plan for the unexpected. So…what can we do?

  • I am a HUGE cheerleader for Long Term Care Insurance. I know some of you think this is a huge waste of money, but I beg to argue. My Mom had a long term care policy. Her premiums were about $100 a month, and all her friends thought she was a fool to pay into this ‘crazy’ plan. She opened the account when she was about 50 years old and paid her $1200 a year for 19 years (so her premiums cost her $22,800 in total). Mom was moved to an Alzheimer’s Care Community at the age of 69 and lived there for 10 years until her death in 2012. If we had had to pay out of pocket for this community at $3700 a month (which is a DEAL, by the way), we’re looking at $444,000 cash out of pocket. I want you to really think about this, because this is a reality…just read the report from yesterday. It’s coming and it’s coming fast! My husband and I signed up for long term care plans, and they are still incredibly affordable, if you calculate what you will undoubtedly spend down the road without one.

Some life insurance companies are doing something new. You can ‘borrow’ from your plan to pay for long term care, then eventually when the person passes, you don’t own the policy anymore. It’s an interesting concept but could help with funds when you need them most.

  • Reverse mortgages aren’t what they used to be. The misconception is that if you do a reverse mortgage, you no longer own your home. What really happens is that you borrow equity from your home to pay for whatever you need, and then can either pay it back, or transfer that debt to your beneficiaries, who will own the home and the small debt…not a bad deal.
  • In the next week, I’ll be posting a ‘formula’ for all of you, based on your age, so you can begin to really plan for what you will realistically need for retirement and long term care. It will take a little cutting back here and there, but it’s a goal we can all reach. Even if you’re my age (50) it’s not too late to have the money you’ll need to live comfortably and also have that cushion to pay for health issues that may come up.
  • I have the best Rolodex in town, and know people in all of these industries to help you get moving on your ‘retirement plans’…you can meet with them for free, and I get NO kickbacks! I just want my friends to be prepared, safe and comfortable when the time comes!

If you have questions about any of the info I just posted, or have a loved one who needs some help, give me a call. Some city programs are free, and I can refer you to the right people. Again, you always tease me about this, and tell me I know everybody, but I really do, and I’m happy to share my friends who provide these services with you! Just give me a jingle! 909-921-1033

Have a great week and weekend!

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