The May issue of Financial Planning magazine included a great article called Elder Housing Options. As the co-owner of YourLTCresources.net, I thought the article was well-researched, providing all types of data about those of us in middle age, quickly approaching retirement-decision age. As boomers know well, the past several years have not been financially kind to them.
As Financial Planning states, “For boomers, the housing market downturn couldn’t have come at a worse time. A large percentage (of boomers) no longer have the means to buy into appropriate senior-living facilities as they age.”
According to the Federal Reserve, the overall value of real estate owned by U.S. households fell to $17.65 trillion in 2012 from $22.7 trillion in 2006.
“And much of that decline hit boomers the hardest,” said Financial Planning magazine author June Fletcher, “since most were in their peak earning years when the financial meltdown occurred and were living in the largest homes they would ever own.”
Financial Planning magazine recommends doing what is possible now to stretch your retirement housing dollars, for instance:
- Invest your portfolio more aggressively
- Lower your taxes (possibly by moving to a state with lower or no state income taxes)
- Remodel your home to make it more senior-friendly
- Consider an ECHO home (temporary prefab units on a relative’s property)
- Get a reverse mortgage (borrowing against the equity of your home)
Investing wisely and downsizing are good ideas. Another sound financial piece of wisdom is to think ahead and prepare for your future now, while you are healthy.
Need information and resources to make informed educated decisions about your future? That’s my specialty and my passion. I can help you learn what Long-Term Care Health Insurance, Critical Care and Short-Term Care Insurance can do to help you protect your financial future. ~ Elise