The cost of eldercare in Connecticut is staggering. And so is the toll it takes on an adult child. Are you prepared for either? Or both?
A recent MetLife study estimated that the total cost incurred by the caregiver alone (not including the costs directly related to care) is an average of $324,044. The financial impact can be similar to having children, but without the planning. So, how can one prepare for this? Here are a few suggestions:
1.) Talk with other siblings and relatives. Have any of them considered this? Do they have plans or ideas they haven’t shared? Utilizing networks early on can help alleviate worry down the road.
2.) Talk with mom and dad. Not always the easiest or most comfortable conversation to have, but a very important one nonetheless. Find out what they want these upcoming years to look like, and what kind of long term care insurance, pensions, and home equity they may have. Do they have a retirement planner that has factored any of this?
3.) Look into long term care options and weigh out the costs along with the pros and cons. Although your parents are your parents, and you love them dearly, you may not be the best option as a caregiver among the many options available today.
4.) Consider a reverse mortgage. The once frowned upon reverse mortgage program is now being utilized to brighten long term retirement scenarios. This FHA insured loan not only eliminates mortgage payments but allows the borrower to access the equity in their home via monthly installments, a line of credit, or sometimes even a lump sum. This is a great option for those wishing to age at home, as the loan does not come due until the last borrower passes away or leaves the home permanently, or if property taxes or homeowners insurance become grossly delinquent.
Reverse mortgage is an individualized, specialized loan for those 62 and older that allows older Americans to tap into the equity of their home while living mortgage and loan payment free. If you are planning ahead let a reputable reverse mortgage advisor guide you to creatively to suit your needs and desires.
Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.