Unfortunately today it's almost necessary for both people to work outside the home. It often becomes difficult to continue to work and care for a loved one because both demand so much time. They may have family leave available but often people cannot afford to take the time off.
We're also a more self centered society today and aren't as willing to take elders into our homes. That's not always the right decision either though. It all boils down to money to get the assistance to help someone remain independent or to care for someone in their home.
Families, government, communities and churches are going to have to work together to develop affordable options to help people remain in their homes. There are limited resources available to help seniors remain in their homes. Many seniors cannot afford to pay privately for in home care and they are often then forced to go to a nursing home. We also face a huge labor shortage of caregivers, aids, nurses and geriatric physicians to provide care for seniors.
Being educated and prepared is one way you can overcome some of these challenges. Begin the conversation with your parents before they need any help so that you can plan accordingly.
Saturday, November 22, 2008
Wednesday, November 12, 2008
National Caregiver Month
November is National Caregiver Month which is a time to honor all those, paid or not that care for someone. Having worked in a nursing home I can assure you that the staff works very hard caring for their elderly parents. Because the job involves some not so pleasant tasks I can assure you that if they didn't like what they were doing they wouldn't be doing it.
Caregivers that are taking care of the loved one at home I give a special saluate to. You're doing the job of three people, that's how many people it takes to care for them in a nursing home. If you're like most caregivers you're also working, caring for your own family and trying to keep up with the other things you do. Don't burn yourself out. It's ok to ask for help, you can't do it all. Take a Caregiver Burnout Quiz at http://www.agingavenues.com/topicview.php?id=146&cat=1.
Give any caregiver you know A Hug Today!
Caregivers that are taking care of the loved one at home I give a special saluate to. You're doing the job of three people, that's how many people it takes to care for them in a nursing home. If you're like most caregivers you're also working, caring for your own family and trying to keep up with the other things you do. Don't burn yourself out. It's ok to ask for help, you can't do it all. Take a Caregiver Burnout Quiz at http://www.agingavenues.com/topicview.php?id=146&cat=1.
Give any caregiver you know A Hug Today!
Five Reasons You Won't Take A Reverse Mortgage, but you should
1. “I want to leave my house to my children.”
Let’s first find out if your children WANT your house! Many families today live in different
states and they already have a home. Most children of seniors that I talk to want their
parents to be more financially secure and they couldn’t care less about getting the house
later. Talk to your family to see how they really feel. Also, remember that any equity left can
still go to your children. You can also look into insurance policies that may give your children
cash instead of a house ! Or you may be able to use some of the Reverse Mortgage proceeds
as a gift to your children so you can see them enjoy the money while you are here.
2. The Bank will take my house and my equity.
This is simply NOT TRUE ! The senior will keep the title to their property and may sell
their home at any time. When the loan is paid off, any equity left will go back to the senior
or to their estate.
3. The closing costs are too high.
Well, compared to what? If you were to get an FHA first mortgage on your home, the
closing costs would be very similar to the Reverse Mortgage.
If you compare to a line of credit (which is harder to qualify for) then the closing costs would
be less on the line of credit, but you would still need to make payments on the line and the
line doesn’t grow. Many seniors start out with a line of credit but get tired of making
payments and paying higher interest, so they end up with a Reverse Mortgage anyway.
The Reverse Mortgage line of credit is tax free and the growth on the unused portion also
grows tax free (around 3.5% these days) plus you NEVER have to make a payment.
4. I will have to pay back more than I borrowed.
Yes, this is true, however, this is true of any mortgage. On a “traditional “ first mortgage, if
you borrow $100,000 at 7% rate and pay on that money for 30 years, you actually pay back
OVER $250,000 !! The difference is that on a Reverse Mortgage, you won’t be making
payments on the loan during the time you have use of the money. In addition, you can live in
your home for as long as you wish and you can never owe more than the property is worth.
5. “ If I wait, I can borrower more later because I will be older.”
While it’s true that as you age, you are eligible for higher loan amounts, this is also based on
your equity/value of your home. Your home may not have appreciated enough in the next
year or two to offset the difference. In addition, rates have dropped which also allows you
to get more cash. Rates may be higher later. The most important thing to think of is that
none of us knows what tomorrow will bring and perhaps you will be able to use the money
sooner, rather than later?
The best decision you can make is one that considers all the facts.
Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis
Let’s first find out if your children WANT your house! Many families today live in different
states and they already have a home. Most children of seniors that I talk to want their
parents to be more financially secure and they couldn’t care less about getting the house
later. Talk to your family to see how they really feel. Also, remember that any equity left can
still go to your children. You can also look into insurance policies that may give your children
cash instead of a house ! Or you may be able to use some of the Reverse Mortgage proceeds
as a gift to your children so you can see them enjoy the money while you are here.
2. The Bank will take my house and my equity.
This is simply NOT TRUE ! The senior will keep the title to their property and may sell
their home at any time. When the loan is paid off, any equity left will go back to the senior
or to their estate.
3. The closing costs are too high.
Well, compared to what? If you were to get an FHA first mortgage on your home, the
closing costs would be very similar to the Reverse Mortgage.
If you compare to a line of credit (which is harder to qualify for) then the closing costs would
be less on the line of credit, but you would still need to make payments on the line and the
line doesn’t grow. Many seniors start out with a line of credit but get tired of making
payments and paying higher interest, so they end up with a Reverse Mortgage anyway.
The Reverse Mortgage line of credit is tax free and the growth on the unused portion also
grows tax free (around 3.5% these days) plus you NEVER have to make a payment.
4. I will have to pay back more than I borrowed.
Yes, this is true, however, this is true of any mortgage. On a “traditional “ first mortgage, if
you borrow $100,000 at 7% rate and pay on that money for 30 years, you actually pay back
OVER $250,000 !! The difference is that on a Reverse Mortgage, you won’t be making
payments on the loan during the time you have use of the money. In addition, you can live in
your home for as long as you wish and you can never owe more than the property is worth.
5. “ If I wait, I can borrower more later because I will be older.”
While it’s true that as you age, you are eligible for higher loan amounts, this is also based on
your equity/value of your home. Your home may not have appreciated enough in the next
year or two to offset the difference. In addition, rates have dropped which also allows you
to get more cash. Rates may be higher later. The most important thing to think of is that
none of us knows what tomorrow will bring and perhaps you will be able to use the money
sooner, rather than later?
The best decision you can make is one that considers all the facts.
Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis
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