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Old 10-20-2019, 03:58 PM
 
Location: Phoenix, AZ > Raleigh, NC
15,456 posts, read 19,663,686 times
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Quote:
Originally Posted by TuborgP View Post
They are/were financing with renewable long term bonds. I think 40 year duration. At the time they were planning to refinance in a few years at expected still low interest rates. That’s wonderful. They are still developing. I asked what the plan was if rates were way higher in forty years when the notes came due and they had to pay up. He responded what do you care you will be dead, which is true.
The problem to me is that I might pass in 25 years and when it came time to sell my unit a future buyer might well balk at low cost debt being due in 15 years and refinancing being a lot more. Doesn’t effect me but could my heirs in getting the buy in money back and a unit needing to be sold.

One of the reasons monthly pay as you go is becoming more popular. You aren’t marrying their long term debt obligations.

Thanks for the explanation.

I totally understand the appeal of the pay as you need structure. But $13K per month for skilled nursing is daunting. And in that event, why not just stay in a condo or small villa in a 55+ that you own (and can put in your estate for the kids IF that's a priority for you.) Or just rent a normal apartment at the normal costs?
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Old 10-20-2019, 07:58 PM
 
30,196 posts, read 35,444,476 times
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Quote:
Originally Posted by Jkgourmet View Post
Thanks for the explanation.

I totally understand the appeal of the pay as you need structure. But $13K per month for skilled nursing is daunting. And in that event, why not just stay in a condo or small villa in a 55+ that you own (and can put in your estate for the kids IF that's a priority for you.) Or just rent a normal apartment at the normal costs?
13k a month for skilled nursing is a bit much. It all depends on the comfort level you seek and the resources you have. From our conversations with the marketing people at the places we have had sit down conversations with different people have different wants and different resources. Monthly pay lends itself to people with pensions and SS with a high monthly income. Widows and widowers using a large life insurance benefit/sale of might prefer a buy in.

Having Long Term Care Insurance is a big plus and minimizes the Skilled Nursing costs.

Having a large nest egg can lend itself to a buy in however if in a tax sheltered account that can be a major tax hit.

Having to sell your house in a down market is a major concern.

What we have learned is to explore early and look at your potential resources and develop a plan to maximize how to use them early on before actually needed. Monthly pay is much more of a challenge for a couple as they can age differently. Thus the Concierge model can help keep them together by bringing the resources to them. We have a multiple ways of skinning the cat and just need to hope the unplanned for doesn't rail road us to bad.

We aren't planning on doing this until about 80 unless events force us to do it sooner.
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Old 10-21-2019, 07:19 AM
 
Location: Phoenix, AZ > Raleigh, NC
15,456 posts, read 19,663,686 times
Reputation: 25200
Tuborg, thank you for that excellent informationn and your thoughts. You've clarified a number of things for me. And I appreciate it.
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