Financing Your Move to Senior Living
If you are considering relocating to a senior living community in retirement, you might wonder how to best maximize your budget while still planning for the future. From selling your home to considering long-term care insurance, there are many ways to do exactly that. Read on to find out how you can be financing your move to senior living.
1. Consider All Income Sources
First, evaluate your income sources to determine if a senior living community is within your budget. Then, create a spreadsheet with all of your sources of income. Typically, people aged 55 or better have multiple income sources, such as Social Security, income from investments and other assets, pensions and retirement plans, earnings from work, public assistance programs, and veteran’s benefits. You can determine how much you can pay out of pocket by considering your income sources.
2. Utilize Government Programs and Benefits
Another option is to use government programs and benefits. If you are a veteran or the surviving spouse of one, you can leverage your veteran benefits. One benefit you should consider is the pension fund, which can give you anywhere from $1,000 to $2,000 in benefits to finance expenses for independent living. While these government programs often don’t cover the entire cost of senior living, they should be added to your financial strategy.
3. Explore Long-Term Care Insurance
Long-term care policies are designed to cover long-term care needs. Many older adults use their long-term care insurance benefits to pay for services, such as occupational therapy, rehab and help with activities related to daily living. Since this coverage can help pay certain costs, it should be part of your strategy for paying for senior living care.
4. Look into Home Equity Options
If you are paying monthly mortgage payments on your home, consider taking out a home equity loan. Home equity loans work by taking the difference between the market value of your property and what you owe and then distributing it to you as a loan. While you are making monthly mortgage payments, you will be able to keep paying the loan down while increasing your equity. One major benefit to applying for a home equity loan is that the qualifications are less stringent, as they don’t often require a minimum credit score or income-to-debt ratio.
Another type of home equity loan is a Home Equity Line of Credit (HELOC). A HELOC works the same way as a home equity loan: it lets you borrow the accumulated equity on your home. However, HELOC loans are usually more flexible, and borrowers can take out multiple credit lines at any time to help pay for those unexpected life emergencies.
5. Seek Advice from Financial Professionals
This item might be the last one on this list, but it is by no means unimportant. Before starting the process of financing your move to senior living, make an appointment with a financial advisor. Talk to them about your goals and dreams and how they can fit with your assets and other financial obligations.
Before meeting with a financial advisor, list all your current monthly expenses. This includes not just your mortgage and insurance payments but also grocery bills, gym memberships, utilities, internet, cable, and other entertainment expenses. Then, compare these fees with what you would pay at a senior living community. By considering your dreams and goals and your monthly income and assets, you can determine your budget to find the perfect senior living community for your lifestyle.
By knowing all of your options, you can make the best decision as you prepare to make that move to a senior living community.
At Springpoint, you will find endless options to live your best life doing what you want. An abundance of opportunities awaits you so that you can start living the life you have always wanted. Contact us today to find out more!