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Finally, I decided that I would move to a CCRC when I was older to make sure that there was someone around who could recognize that I was a danger to myself and move me from independent living to whatever care I needed.
This is avenue my husband and I have also planned. We said that if/when we were 80 this would be our goal.
Many of the discussions about financial planning, retirement, etc. always have a "fudge factor" like I have a spouse to protect or I have kids/grandkids. etc. to protect. It is always "somebody" to protect.
Let us start a chat about financial planning/preparation, etc. when only having to take care of/protect yourself with little to no concern about anyone else.
First subjects, playing of other chat subjects:
1. Reverse Mortgages.
2. Nursing Home Care Financing ala Medicaid kicking in.
3. Annuities.
Anything else?
I know this is not part of your topic but here is a suggestion,
If you have not already done so, bite the bullet and pay the $450+ for a round on Pinehurst #2. And opt for the caddy.
Thank you for this invaluable advice. I am 61 and single. I have no family and my mother died of Alzheimer's. I am very concerned about my future care and finances.
LookingatFL's post is most helpful not only for those who are currently with someone but for any of us who may wind up alone some day.
I was in the same position as you. I was widowed, I had no family at all, no one to leave assets to, and had to make sure I was protected in the event that I grew old and was unable to make decisions or care for myself. Having said that, men and women grieve differently and it is not uncommon for a widower to remarry. So, regardless of your feelings on the subject at this exact moment, I would not completely rule out the possibility until you are much further along in your grief journey.
I chose to purchase long-term care insurance. This would cover me in case I couldn't care for myself in the future. At the time I bought this I was very young and it was just after I got out of the long-term care that I needed due to the accident that took the life of my husband and child. I still think long-term care insurance is very important if we don't have family to look after us.
I have chosen to purchase an annuity (either DIA or SPIA) because I want to make sure I don't run out of money even if I become senile and have every cent stolen from me. I want to know that next month there will be more money coming in. I think this is also important if you don't have someone looking out for your finances if you get to a point that you can't make good decisions any more or get easily confused.
Depending upon your current age, you might want to talk to an attorney about setting up a trust so that if you do become incapacitated there will a board of people (attorney, accountant, financial planner) to pay your bills, file your insurance claims and any tax returns, and oversee your investments.
I would also discuss getting your will updated and your durable power of attorney, and your living will, etc.
If you own a home, some states have a widow's exemption for property tax. I would call to ask if you qualify.
I also looked into the unclaimed money sites for many years after my spouses death to make sure that there was nothing in his name that was floating around. I did find money.
Finally, I decided that I would move to a CCRC when I was older to make sure that there was someone around who could recognize that I was a danger to myself and move me from independent living to whatever care I needed.
People who are newly bereaved are cautioned that they should not make any major decisions for a year. This is very sound advice. At this time, whether you recognize it or not, you are very vulnerable, so you should give yourself time to heal.
I hope this helps. Sending you wishes for peace.
I really appreciate all of these suggestions. I'm in my early 50's, but need to put a plan in place now.
One of my concerns is how do you know who to trust? (Thinking of the Bernie Madolf's of the world.)
Single, no kids, earned my money by my own sweat. Yes, I too burned the night oil when I had to. I agree with the idea spend it while you can enjoy it. Having given this issue some thought, my main concern it turns out, is access to the "black needle." I am in no way interested in assisted living - I've always been independent. I want to die that way - as they say, "quickly, with dignity and style." I hope I won't have to wind up moving to Oregon to have that option (too cloudy for 8 months a year (blah).
Many of the discussions about financial planning, retirement, etc. always have a "fudge factor" like I have a spouse to protect or I have kids/grandkids. etc. to protect. It is always "somebody" to protect.
Let us start a chat about financial planning/preparation, etc. when only having to take care of/protect yourself with little to no concern about anyone else.
First subjects, playing of other chat subjects:
1. Reverse Mortgages.
2. Nursing Home Care Financing ala Medicaid kicking in.
3. Annuities.
Anything else?
In answer to your questions:
1) no to a reverse mortgage
2) unless they come up with something affordable with a cap on the rate increase, no to this one too.
2) no to annuities, I hate annuities. I have a pension and will get social security, which are both annuities.
Although we have children, DH & I don't intend to depend upon or burden them with decisions and arrangements for our care. And even though we have each other for now, inevitably one of us will die or be incapacitated, leaving the other alone.
The two things above are our primary planning vehicles. We've set up the trust with an estate management team and we plan to begin arrangements for reserving our spot in the CCRC we've selected.
We are fortunate in both aspects. We already have a long relationship with the bank under which the estate mgt team functions. They've been around since 1875 and we know many who have used the service through the years.
The CCRC we've selected is in the area to which we hope to relocate within the next 2 years. It's been there for 35 years, is a non-profit established and operated by 5 mainstream denomination churches, has a healthy financial record, and is near an institute known nationally for training and certifying caregivers for the elderly. It's common there for seniors to be able to remain in the "independent living" section of the CCRC and avoid moving into the "assisted living" section because of the availability of skilled caregivers to make regular home visits and checks.
Unfortunately many seniors, due to geographic and other reasons, don't have access to such quality services. It's a quagmire trying to find and evaluate trust managers and CCRCs.
A Continuing Care Retirement Community.
Typically it's a campus with independent living facilities for seniors, an assisted living facility, and a skilled nursing facility. As residents age, they may transition from one type care to the next without a break in the continuity of service.
A big item you are missing is naming someone as your second in case of incapacitation (car accident, hospital stay or operation) who can make life/death decisions when you are incapable of doing so.
Reverse mortgage is not a bad idea for people with few assets but very far off given your age. Wait until you need the money and plan to stay in your home for 5 years longer or the expense of this loan makes it less desirable. Might be better to sell your home at that time and use that money toward a retirement home with long term care options.
Long Term Care insurance is a good idea for people without relatives to look after them. Not something you need immediately (most people only have brief stays in nursing homes) but you should have some type of disability insurance right now to protect you if you are unable to work.
Annuity is best purchased as an "immediate" annuity after the age of 70 from everything I've read. No other types of annuities are good investments (except for the salesperson selling you one--they make out great). Buy immediate annuity from Vanguard and never from a salesperson.
Trust or no trust? A revocable trust might be a good idea but you'll need to read about them to see if it fits your needs, they avoid probate (which you won't care about) and are really best for married people with kids, second marriages and stepchildren. As long as the trust is revocable you can change everything, the same as having all assets outside a trust. If you need someone to manage your money you might want some assets in an irrevocable trust so that you get a monthly check but can't touch the principal (to go to Vegas for example or buy timeshares in Cuba).
I am married and 61 too and worry about the time when I become less able to manage our finances. Being a couple gives us a little backup but not as much as you'd think because my husband is 7 years older. If I were single and 61 I'd worry most about poor health complicating important decisions with no one to support me emotionally or in daily life.
Once you get everything decided I hope you enjoy your life, you have many good years ahead. When you retire consider getting a companion dog, good for you in so many ways.
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