Financial advisors guide to senior living

Financial Advisors Guide to

Senior Living

Liz Skinner- Investment News Magazine. Questions to Ask When Considering

a Continuing Care Retirement Community. June 2015.

Financial Advisors Guide to Senior Living | www.mylifesite.net

“Advisors can play a crucial role in helping

aging Americans, who typically underestimate

the cost of long-term care, plan where to

spend their later years.”

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If you don’t bring this topic up with your

clients, it is possible that no one else will

until it is too late.

Be the catalyst...


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Justine Vogel- CEO of Riverwoods Retirement Community. New Hampshire

Business Review. A Powerful New Role for Advisors. September 2015

“Professional advisors can initiate the kinds

of conversations with clients that the clients’

own children find nearly impossible to

discuss.”


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• To help your client and their family members avoid difficult and costly

situations in the future

• If you don’t there may not be anyone else who does

• It is a financially significant decision

• Adds value to your service offering

• It can lead to additional planning opportunities and referrals

• Create a stronger bond with the heirs; increasing chances of

maintaining assets in the future

Reasons for having a discussion about housing and healthcare:


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The best time to begin discussions with your

client about housing and aging:

During the mid-retirement

years; typically around age 70

and as long as your client is

independent and of sound

mind.


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Planning for

housing and care

The Goal:

To help make sure the eventual

transition from independent living

to living with care supports and

services- whenever that time

comes- is as manageable and

life-affirming as possible.


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Most common

concerns among retirees

about living a long

lifetime :

It’s not all about the money

● Serious health problems

● Not being a burden on family

● Running out of money

● Being lonely

● Not having a purpose

● Having nothing to leave heirs


Americans’ Perspectives on New Retirement Realities and the Longevity Bonus.

2013 Merrill Lynch Retirement Study, conducted in partnership with Age Wave

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Several of these concerns could be

impacted in a significant way by where

a person chooses to live during their

later retirement years.


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“We’ve already done the appropriate planning.

My clients have long-term care insurance”

Long-term care insurance can be an important part of a plan but it does

not constitute a plan by itself. It addresses the cost of care but not

necessarily access to care.

Planning Pitfall


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Client Discussion Starter Question

What concerns do you have about your

future as it relates to your lifestyle,

health, and finances? #1


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At this point in your life what does

peace of mind mean to you? What do

you think it will mean to you in the

future?

#2


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Is it your plan to stay in your current

home as long as possible or do you

think you may consider other

alternatives?

#3


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The vast majority of people prefer to stay in

their own home

BUT...

Is this the most practical choice for your client

long term?


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Pros:● Comfortable

● Familiar

● Memories

● Neighbors

● Avoid hassle of moving

● Sense of independence

● Less expensive (maybe)

Possible Cons:● Home modifications

● Safety issues

● On-going maintenance

● Social isolation

● Limited activity

● Lack of transportation

● Impact on family

caregivers - if care is

needed

● Having to move later

Staying in the Home


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The choice to remain in the home as long as

possible is often driven by mostly emotional

reasons.

In order to make the best decision your clients

should also consider the practical (or impractical)

aspects of their choice.


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The majority of care provided to elderly adults in

their own home comes from unpaid family

caregivers, but usually not without a mental,

physical, and financial impact.


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$303,880﹡The average lost lifetime wages and

benefits of an unpaid family

caregiver.


The MetLife Study of Caregiving: Costs to Work Caregivers: Double Jeopardy for Baby Boomers Caring For Their Parents

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What are the alternatives if your

client determines that staying in

their home long-term may not be

the most practical choice?


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Independent

Living Only

Independent

Living w/

Limited Care

Independent

Living w/

Full Care

Care Only

Four Categories of Senior Living


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Learn more about retirement communities at www.MyLifeSite.net

Independent Only

Communities

Independent Living

with

Limited Care

Independent Living

with

Full Care

Care Only

Facilities

Active Adult Planned

Communities

Independent Plus

Communities

(Supportive Living)

Continuing Care

Retirement

Communities

Assisted Living

Residences

Independent Living

Apartments

Personal Care Homes Skilled Nursing

Facilities

Cooperatives Memory Care Centers


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Continuing Care Retirement Communities (CCRCs)

Often referred to as Life Plan Communities, CCRCs

are unique because they contractually provide

access to lifetime housing and a continuum of care,

including independent living, assisted living and/or

skilled nursing care, typically all in one location.


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Choosing a CCRC is a significant

lifestyle, financial, and, healthcare

decision.

For the average consumer it can also be

an overwhelming decision due to

contract complexities.

Learn more about CCRCs and to get detailed contract information

on specific communities by visiting www.MyLifeSite.net


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• Staying at home is often, but not always, a less expensive option

• The cost of staying at home often gets passed to family members in the form

of unpaid caregiving

• The less expensive option may not always be the best option

• Consider the total lifetime cost of various options, and not just the cost today

• As it relates to CCRCs, the total lifetime cost of housing and care will depend

on the type of residency contract and the corresponding payment structure

(visit www.mylifesite.net to learn more)

• Most retirees use income sources and monetized assets (often selling the

home) to pay for senior living

Other Considerations


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About My LifeSite

My LifeSite develops web-based tools and resources designed to help families

make better-informed decisions when considering a continuing care retirement

community (CCRC), including detailed community profile reports on hundreds of

CCRCs across the United States, a financial tool that projects the potential impact

on assets over lifetime, and a comprehensive resource library.

My LifeSite is utilized by consumers, professional services providers, and

continuing care retirement communities.

For more information visit www.MyLifeSite.net.


www.MyLifeSite.net.

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Financial advisors guide to senior living