How to Best Fund Senior Living

How to Best Fund Senior Living

There are various options, for funding your retirement plan. To build extensive senior resources begin by having more than one financial option. Another great idea is knowing the expenses of the senior living community. If your income falls short, you can tap into investments such as the stocks or saving. Some other financial options you can explore are:

Real Estate Options

Real estate can be a retirement-plan that keeps on giving. If your parents or relatives don’t have enough savings, they can use the house as a great financial option. There are several ways to this: First, they can list the house and sell it to the highest buyer. Alternatively, they can apply for a home equity loan using their stake on the property, even if the mortgage is not fully paid. Renting out the property is another possibility. However, it is a lot of work. Someone must set aside time to manage the property.

Traditional Options

Traditional IRAs should be explored before deciding to retire. However, if you have a short time frame before retirement, traditional IRAs are great options. Anyone can contribute, and contributions are tax deductible. After the age of 70 ½, you cannot make any remittances to the plan.

Another excellent option is defined contribution plans such as the 401(k) or 403 (b). They put you in control of your future. Some financial advisors recommend them as the best financial option after retirement. In some cases, you will obtain 100 percent matching on your contributions.

Pensions are mostly offered to municipal and government workers. The employer makes regular contributions making it the most accessible traditional option. However, pension remittances do not vary. In the corporate environment, pensions are becoming less preferred.

Government Options

The government provides various great healthy options such as Medicare and Medicaid. Medicare is an insurance program only for people above the age of 65. The insurance will help pay for most of their health care although it does not cover care given at home, in nursing homes or assisted living facilities.

Medicaid helps to pay for costs of custodial and medical care. It is a half loaf approach where the government contributes half of the state Medicaid fund.  The eligibility requirements are different than those for Medicare. Primarily it is designed to help the poor. However, there are permissible groups such as families, children, caretakers of the disable and elderly among others. When exploring this route, familiarize yourself with the strict eligibility criteria.

Insurance Options

Life insurance plans are additional senior resources to use for retirement. If you have a cash-value insurance which matures over time, you take a loan on the coverage. For instance, if you have a 1 million insurance cover that matures upon death, the bank can lend you $500,000. Your beneficiaries will receive the rest.

Another commonly used insurance option is the Long-Term Care Benefit Plan. Here you convert life, term or universal insurance covers into monthly pay-outs to help pay for the living expenses. The plan is recognized by Medicaid meaning it won’t affect the coverage.

Keep exploring other financial options. The sooner you are prepared for senior living, the better.

© 2019 Realtime Senior Living Update App