Category Archives: Finance

 Advice For Seniors – Working Your Way Through Retirement     







Caring for the elderly can be daunting and challenging at times. It is something to that everybody has something to worry about sometime. Everyone gets old in each and every family, and at the very least, most people have a relative of an advanced age. This stage poses a lot of uncertainty and behavioral change that the person himself/herself is unaware and can hardly control.

1. Theory on Behavioral Change Among Elderly

Each of life’s stages are characterized by unprecedented behavioral change. Your preferences in food, color, clothing style, company, music genre, etc are mostly affected. In a latest study, it was found that people periodically change in their preferential course of life, including aspirations approximately every 7 years. Just as how complex this change in the early life are as complicated when one turns into old age. People may find elderly people annoying but these behaviors are a result of various physiological processes occurring in their body as they approach such age. Many may have seemed to develop resentment on an activity that they previously enjoy. They develop resistance to many things such as loud sounds, discomfort on almost anything, incontinence, and apparent withdrawal from the society. Understanding these queer behaviors and how they arise will provide you valuable information that you can use in tailoring the kind of care needed for your elders.




2. Tips on Caring for Seniors

While geriatric care managers are the expert in the provision of health care among elderly, everyone can empower themselves to be equipped with the right training and knowledge in geriatric (referring to old, elderly) and better assist aging members of your household such as your grandparents and parents, and older siblings. Below are the lists of useful tips on how you can better assist our elders as they embark on this stage of life with full of challenges and uncertainties and assist elderly on protecting themselves, physically (health matters), financially and legally on everything that concerns your assets.

3. Be Completely Absorbed

People who have had experience taking care older adults, especially the caregivers and other geriatric care managers, considers giving a “piece” of yourself into a health care program designed for such individuals. More than ever, accompanying them in this critical stage provides them with enough relief with all dramatic changes they are experiencing physically.

4. Secure Health Care Insurance

As you age, you will be more prone to diseases. Your body will become more vulnerable to diseases. You tend to develop illness that do not normally occur in healthy, young people. Because of this, more and more people are paying closer attention to the quality of medical or health insurance they enroll to and make sure that it covers programs expected when one reach old age. Review carefully your health insurance policy and make sure you understand the entire terms of service programs stipulated in it.

5. Financial Care for Elders

As we reach retirement age, you will be more or less dependent upon your retirement pensions unless you have acquired a business of your own. This leaves you little flexibility in the amount of income or budget you will get for a month but this very same financial rigidity empowers or teaches you to limit your spending to an amount that is appropriated for you for a specific length of time.

6. Elder Care Law

The government dutifully protects senior citizens’ rights and extends support for elderly who still can manage to take care of their own and during the time that they need other else’s supervision in the performance of daily activities such as cooking, bathing, feeding, taking medications and leisurely walks, etc. It is important to note that legal provisions vary from state to state and that the help of a professional family law or elder care law attorney should be consulted.

7. Relegating Power of Attorney

Power of attorney is a legal right whereby an individual is granted certain rights to act as a representative of someone in the performance of a certain legal actions or decisions. Elder individuals become less able to dealing with affairs concerning their assets, including financial, monetary, and estate affairs. It is about giving someone the authority to do the affairs for you especially when you reach the stage where you can no longer perform these activities yourself.

About the Author:
Get great pregnancy and baby advice at Mommy-Mommy.com You’ll find excellent tips to help you fight all sorts of pregnancy “discomforts” like morning sickness and crankiness.







                   

Why Seniors Need To Have a Financial Economic Stimulus Plan Of Their Own







If seniors or baby boomers sit back and wait for things to get better in this unprecedented and never before seen economic disaster in this country and in fact around the world, then they better think again.

With bad news hitting our air waves everyday all day long, it is becoming more increasing for older citizens take matters into their own hands, and not wait for things to change you must change them yourself. So how do you make changes in your financial situation with all of the downturn everywhere you turn? The problem that many are facing around the country is what we can and can not do!

The Stock Market is now down 55% of its high and predicted to go even lower so this is not the solution.
Pension funds and many investment funds are invested into the markets and have lost a large portion of the principle balances. (Down as much of 75%) Real Estate values are down all over the country as much as 60% and foreclosures are up 22% since the beginning of the year. Fuel costs have gone down but the up cost that the higher prices caused have not come back down. Unemployment rates hit 8% and in some areas as much as 10% and is expected to increase and stay that way for sometime to come.




So what can seniors and their families do to secure that their futures aren’t heading totally in a downward tail spin. There are solutions and steps that can be taken to alleviate some of the economic pressures that maybe around for many of us for the rest of our lives. Like I said this is unprecedented in history and there is no one who has the answers or how to fix it. The one thing is sure we need to look out for ourselves and as seniors we need to think about the last place there maybe money available and that is the home.

Your home may not have the value it had four or five years ago which by the way was over inflated in the first place so don’t think you have lost something that shouldn’t have been there in the first place. It was FAKE!
So what is the real value of your home and how is it determined. If you purchased your home 30 years ago and you paid your home off, the fact is your anticipated appreciation should have been between 3-5% per year. But when the market took off ad many people cash out the equity in their homes with hope that they would sell their homes or would be able to pay it off from their proceeds or gains. This did not happen! In many cases they lost no only the interest but the principle of the investment.

Here is good way to look at the value of your home today!
What did you pay for the home originally!
Over the years you lived in the home so what did it cost you!
What would it cost you today to replace your home if you sold?

Take the original purchase price and multiply it out by the national average that should have taken place which would be a national average of 5%.Once you have done this take the value and ad 10% for improvements if you did any. Now you should have the value that your home should have been without the boom years .
If your home doubled in value you are ahead of the game, because not only did you live in it all these years but you also received tax benefits over the years that you paid for it.

Now that you know what the value should have been you can now take a look at what the market says that your home is worth. By visiting a number of websites out there that can give a pretty good idea of what it is worth if you could sell it. The biggest word in the English language is IF……

Now for the big answer to the senior who is struggling to make ends meet and are thinking of where to go to get the money to live off of for the rest of their lives. The Reverse Mortgage is the answer for many people who are in need of having funds to use for living until they leave this world. This program not only provides you with money to live from, but also gives you great flexibility. In this program called Reverse Mortgage you are in complete control over the funds that you receive, you have the option of taking all of the money or setting up and monthly income or having a credit line for future use. One of the best parts of the program is that if you plan on living in your home for the rest of your life you can literally freeze your home value from going down any further, unlike if you take out a conventional mortgage.




In this program you are paying a Mortgage Insurance premium to the Federal Government; too not only protect the lender but to protect you and your heirs! The lender is protected should the home value decline and the loan balance which will increase over time the insurance would make up the difference to cover the loss. For you the or your heirs should the home value be less the loan balance at the time the loan is going to be paid off the insurance would make up the difference and your heirs or you would not have to worry about having to come up with the money. In addition; none of your other assets such as; investments, insurance proceeds or savings can be attached to pay the loan off this is called a NON-RECOURSE LOAN.

So as you can see this is a very important issue for many seniors and how they can make a Reverse Mortgage as part of her financial plan and live without fear of not being able to take care of their needs now or in the future. Plan today for tomorrow and don’t be afraid of a Reverse Mortgage it is truly a program that will change your life for the better and give you money without ever making another payment for as long as you live in the home.

About the Author:
I am a Reverse Mortgage Specialist I have spent over 20 years as a Real Estate broker and the last 10 years in the mortgage industry, and 5 of them providing Reverse Mortgages. My years as a professional, I have always felt that helping our seniors is helping the back bone of this country. Our seniors are the ones who made this country great and in the time of their lives that is so suppose to be their golden years it is in many cases painted black. I have dedicated my life to helping them achieve some sort of financial independence and help to enjoy the fruits of their labors. Visit http://www.bestmortgageplans.com or call toll fee 877-463-6546 ext 7807

Getting the Government to Pay Family Members For Eldercare at Home







Some 44.4 million adult caregivers — or 21% of the U.S. adult population — provide unpaid care to seniors or adults with disabilities, according to a 2004 study by the National Alliance for Caregiving in Bethesda, Md. On average, those caregivers provide 21 hours of care a week and the average length of time spent providing care is 4.3 years.




Over the years, the National Care Planning Council has received many public requests. A number of these requests have been from family caregivers who had to cut back on their employment or even quit their jobs in order to take care of one or both of their parents. Invariably these caregivers assume there is a government program that will pay them to provide this care. Only recently have we become aware of some programs that will pay family members. These programs are not publicized and the public is largely unaware of them or how to receive them.

Money Follows the Person—MFP (Self-Direction in Care):

In recent years, some state Medicaid programs have been experimenting with the idea of providing a budget to elderly Medicaid recipients. This money can be used to hire family or friends to provide care at home. Most of these programs are very limited, and there are waiting lists for them. Also, the amount of money available may not always be enough to compensate a family member to provide full-time care in lieu of maintaining employment.




The attitude of our government is quickly changing and there is now a new initiative to provide income for family caregivers. The Deficit Reduction Act of 2005 allocated $1.4 billion — the largest demonstration grant in Medicaid history — to a program called “Money Follows the Person.” This program is designed to transition individuals receiving Medicaid and who are living in institutions, back into the community. In 2007, 31 states received their portion of the grant money pie to begin demonstration programs offering more choice in care besides an institution. Most of these state programs offer a concept called “self-direction” which allows a budget to be established by Medicaid for the care recipient. Self-direction allows the care recipient to spend this money hiring any caregiver of choice and this typically includes friends and family.

Unfortunately, this is not a widespread benefit for elderly Medicaid recipients and in addition only applies to bringing elderly people out of institutions and back into the community to receive care. Over the next five years, only 34,395 elderly care recipients nationwide are expected to be transitioned to community-based care through this program. Even though this represents a fraction of the elderly, who over the next five years are expected to receive Medicaid services in institutions, there is still a possibility for the family to apply for one of these programs and to have the government pay for their care services.

Using the Veterans Aid and Attendance Pension Benefit:

A totally overlooked source of money to pay family caregivers to provide care at home is the aid and Attendance Pension Benefit. This money is available to veterans who served during a period of war. Pension money is also available to the widows of these veterans. This benefit, under the right circumstances, can provide up to $1,843 a month in additional income to pay family members to provide care at home. 

It also comes as a surprise to many people that about 33% of all seniors could qualify for the aid and attendance benefit. That’s how many veterans or their surviving spouses there are in this country. Getting the aid and attendance benefit to pay for family caregivers is not an easy task. This is because there must be a caregiver contract in place and services for care must be initiated and thoroughly documented before application can be made. Getting these applications approved requires using a consultant who understands the documentation requirements. Very few people can do it on their own.

Using Medicaid Spend down to Pay Family Caregivers:

In order to qualify for Medicaid nursing care, a person must spend his or her cash assets down to less than $2,000. Instead of giving this money to the nursing home and waiting for Medicaid to kick in, the potential beneficiary can instead transfer this money to a child in return for caregiver services. This is not considered a gift and if done properly does not create a penalty for Medicaid eligibility. The strategy also allows Medicaid to take over paying its portion of the nursing home costs much sooner.

As with the caregiver contracts for VA benefits, an expert in this area of Medicaid benefits is required in order to do it right. In fact, the same type of caregiver agreements used for obtaining extra income under the veterans benefit can also be used for Medicaid. A consultant who is proficient in both the aid and attendance benefit and Medicaid personal caregiver agreements can be of great service to the community. This contracts’ consultant can help relieve a great deal of caregiver stress by providing funds to help that caregiver cope with personal financial pressures.

About the Author:
The National Care Planning Council and its affiliated members are dedicated to helping the American public recognize the need for long term care planning and to helping implement that planning. Planning for long term care is important. To learn about The National Care Planning Council and long term care visit our website at  http://longtermcarelink.net
Article Source: http://www.ArticleBiz.com

Reverse mortgage: Cash bonanza for seniors? 







Reverse mortgages: What are they and how do they work? 

Reverse mortgages were once a financial novelty and have now entered the home loan mainstream. This is very good news for senior homeowners who have to be 62 or older to qualify. Reverse mortgages are one of the few ways that seniors can cash out part of the equity in their home without moving or incurring loan payments. 




Reverse mortgages are in essence mirror images of regular mortgages.  As unbelievable as it sounds, rather than making payments to a lender, the lender actually makes payments to you in a lump sum in monthly installments.  The best part is that you actually don’t have to repay the loan as long as you live in your home.  The reverse mortgage is only repaid from the sale of your house, or after you move or die.
 
The only real negative aspect of reverse mortgages is that they usually have high upfront closing costs.  Those charges have been falling, but even at 5% of a home’s value (which is about the going rate), reverse mortgages looks so much better when the alternative is to sell and pay 6% to a real estate agent. 

What if the home’s value at the time of the sale doesn’t cover the balance of the reverse mortgage? 

If the home’s value at the time of sale doesn’t cover the balance of the reverse mortgage, the lender is actually on the hook for the loss rather then the homeowner or his/her heirs.  That is absolutely excellent downside protection.  The upside is even better: If the property’s value rises over the years, the senior homeowner or his heirs can keep all of those profits after paying off the reverse mortgage.  In other words, you can cash in on cashing out even when the market continues to trend upward. Overall, reverse mortgages are an excellent opportunity for seniors to take cash out on the equity of their home without moving or having to sell their property.

Information from Money magazine, August, 2005.
 

Additional information and webpage by Paul Susic Ph.D. Licensed Psychologist