DECEMBER 2, 2016
‘TIS THE SEASON
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It is that time of year again… important planning By Beth Miller-Rowe Branch Manager and Reverse Mortgage Specialist • The Reverse Mortgage Group • A Branch of American Pacific Mortgage
I am attending a conference in Chicago as I write this article. I am listening to a presenter speak about a topic I feel is timely and relevant to this time of year. As we approach the end of the year, we begin to think about what we want to accomplish in the next year. We make our resolutions; we write them down and hang them on the fridge. We promise to clean out the garage and travel to Italy. I am going to exercise more, eat less, work more, work less and spend more quality time with family and friends.
How about Planning for Life’s Hiccups? Due to the graying of America, and our extended longevity, it is important that we address the eventuality of illness, medical emergencies and long-term goals for medical care. Dr. Lee Lindquist, MD., MPH., MBA, (1) obtained a research grant to determine if people think about potential medical crises that may come up later in retirement. The answers were interesting and surprising. The research showed that yes, people do think about these topics, but they do not have actual conversations about them because: Their kids don’t want to talk about it because it is never going to happen to their Mom or Dad. They know they are not prepared, financially or emotionally, for these types of eventualities, so why think about it. They feel like they are too healthy, so it will never happen to them. They feel like they are too sick, so they won’t make it that far. What ends up happening is that these questions get answered during a crisis which is never good. Dr. Lindquist thoughtfully pointed out that we make plans for college, marriage, babies, careers and retirement and even for our own funeral services. As we think about retirement, we may have general or specific plans for travel, spending time with grandkids or enjoying a slower pace. What we do not plan for are potential medical emergencies in between retirement and death. These types of emergencies can be small temporary hiccups or major, life-changing crises – hospitalizations, traumatic injury or illness, longterm treatments, need for skilled nursing facility or the loss of a spouse and the resulting loss of income. These are difficult topics and difficult conversations. No one wants to talk about these subjects but it is critical to smooth out the anxiety and adrenalin of a medical crisis.
Let’s look at a scenario: Mom falls and breaks her hip. She is in
the hospital, and she will need surgery and rehabilitation. Once all this is done, it may or may not be appropriate for Mom to go back home, even if Dad is able and willing to take care of her. Dad is at home trying to cope with all the issues that go along with a medical crisis, and he has some health issues himself. The kids arrive to help. They have left their kids, spouses and jobs to be by your side. They make the calls for in-home help, visit the social workers at the hospital regarding a nursing facility, they cook up some meals for Dad to heat up while Mom is gone. They try to help all they can, but they do eventually have to go back home likely with many questions left unanswered.
Think of a new order for life’s hiccups – give yourself a voice in your future care: PlanYourLifeSpan.org is a website that walks you through these questions. You make decisions and indicate your preferences. If you experience memory loss, what are your preferences for care? If you get cancer, what are your preferences for treatment? If you fall and break a hip, which hospital and rehabilitation facility do you prefer? Do you know what your options are for the varied types of health care you may need at 65? How about 75? How about 80 or 90? How about 100 years old? Visit the nursing facilities around your local hospital. Let your kids know which you like best, if you would prefer at-home rehab and is that feasible? Do you have friends who have had a good experience with a particular in-home health agency? How about a bad experience with an agency? That may be the more important question. If you are not able to go back home, are you open to a senior community? Do you have friends who live in a community you like? Have you thought about the village concept? Do you like organized activities, would you like to cook for yourself or would you prefer a meal plan? Perhaps you would rather move closer to your kids. Would you want to live BY them or WITH them? Would THEY want you to live by them or with them? Have you spoken to your kids about your wants, needs, desires and demands for that time when emotions will be running high with fear and uncertainty? Check out the book “Can’t we talk about something more pleasant,” – it is a great conversation starter – or use the website and hand them your answers. It too is a great
conversation starter. If you can remove the uncertainty, wouldn’t that be helpful to everyone? Wouldn’t it be nice for you to have a voice in how your life plays out, whether you can express those desires at the time of crisis or not? With planyourlifespan.org, you can do just that. Tell your family what you want, when you want it and what your plans are for paying for it. A reverse mortgage certainly may be a tool you can utilize to insure you have sufficient funds to remain independent, secure and confident about the rest of your life. There is a lot of research about taking out a reverse mortgage earlier rather than later, which may extend the life of all your retirement assets (2). I would love to meet with you to chat further about how a reverse mortgage may help you to eliminate at least some of the stress that comes with unexpected emergencies.
Happy holidays and happy planning! (1) Lindquist, L. A., Ramirez-Zohfeld, V., Sunkara, P., Forcucci, C., Campbell, D., Mitzen, P., & Cameron, K. A. (2016). Advanced life events (ALEs) that impede agingin-place among seniors. Archives of Gerontology and Geriatrics, 64, 90-95. DOI: 10.1016/j.archger.2016.01.004 (2) “Reversing the Conventional Wisdom: Using Home Equity to Supplement Retirement Income” by Barry H. Sacks, J.D., Ph.D. and Stephen R. Sacks, Ph.D.
Office: 925-969-0380 Cell: 925-381-8264 Beth@YourReverse.com 3478 Buskirk Ave., Ste. 1000 Pleasant Hill, CA 94523
BRE: 00950759/01215943 • NMLS: 294774/831612/1850 Licensed by the Dept of Business Oversight under the California Residential Mortgage Lending Act