Real Sage Advice

Inspiration - Nobody puts baby in a corner

I could not, at any age, be content to take my place in a corner by the fireside and simply look on.

Eleanor Roosevelt

For more Inspiration see these posts

Can Reverse Mortgages Help Seniors Avoid Foreclosures?

Predatory lending and the mortgage crises didn't just effect first time home buyers.  We saw a number of seniors become prey to fradulent home-equity loans that allowed them to over- finance their home, increase the monthly payment, and leave many destitute trying to figure out if they should pay for groceries, prescription drugs or the mortgage.

I asked a professional I trust, Gail Wempner from Reverse Mortgage Marketplace in Minneapolis to comment.  Here's what she said:

Rising numbers of home foreclosures are taking place in Minnesota, as well as nationwide.  And the elderly have not been immune from the lure of low initial “teaser” rates of adjustable rate mortgages and other inappropriate home financing programs for those on limited, fixed incomes. A reverse mortgage may help senior homeowners (age 62 and older) who are falling behind in their mortgage payments avoid foreclosure.

An ideal prospect is a senior who has built up a considerable amount of equity in their home and is more recently unable to keep up with mortgage obligations.  They may be experiencing financial stress due to rising mortgage payments or any number of unforeseen events such as huge medical expenses, job loss, increased taxes or divorce.  Once the homeowner falls behind, the debt load can increase significantly and quickly through fees and dramatically higher interest rates.  Thus it is important for the homeowner to look into their options sooner, rather than later.

Unlike a home equity loan or conventional mortgage, a reverse mortgage does not require any repayment as long as the borrower lives in the home. Any existing lien or mortgage must be paid off with the proceeds of the reverse mortgage, and when there is enough equity to do this, the home can be saved from the foreclosure process.

The best course of action is always to first contact the lender to see if a repayment schedule can be worked out. But a reverse mortgage can sometimes save the day, and if you know someone who might be a candidate, please urge them to investigate their options. 

I am always available for information, without obligation. Gail can be reached at (952) 544-0821 or gail@marketplacehome.com.

Other Blog Articles

Another Example of Fraud Against Seniors

See other articles by Gail Wempner

Aging in Place-Building Accessible Homes Paradox

I went to a fair housing for seniors seminar last week at Minneapolis City Hall in celebration of April being designated as fair housing month. Fair Housing month opens the floodgates for one of my favorite rants-lack of universal design in senior housing.

I stomp my feet as I rage-on about how it doesn't cost anymore to raise electrical sockets, lower light switches and increase the size of doorways in homes when you initially build them. But, try to modify an existing home or senior housing community to increase accessibility-if it's even possible--costs at least triple what it would have had it been done in the first place. I usually end my rant with

Our aging population wants to age in place--in their homes. Builders aren't listening to what consumers want.

Then, it hit me. I had one of those experiences when a new idea-a new awareness hits you so hard it feels like you've hit the bottom of the hill on a roller coaster.  One of those ideas where you can FEEL the light bulb go on. Gestalt Psychologists call this an "AHA" moment.

As a society we are uncomfortable with the thought of aging, growing old, becoming disabled. It's no wonder we're uncomfortable with it, look at how we discard our elderly. With the fear of becoming dependent, and no longer viable, we don't want to see household items that remind us that we are aging. 

We even see this in some active adult 55+ communities. There is some disdain for seeing handrails in the hallways, or even seeing residents with walkers. Where there is some subtle discrimination against those who are showing visable signs of living with a disability. The discrimination is not from the owners or professionals, but from others that live in the building!

Here's the AHA. Builders aren't building accessible housing because consumers aren't buying it. We SAY we need it, boomers SAY they want to stay home as long as possible. But, because real estate is a long term investment, young couples in their 30s and 40s aren't thinking about grip bars, and bathrooms large enough for a wheelchair. What self respecting Gen Xer would buy a home with a walk-in shower built for a wheelchair with hand rails? Are we ready to buy a home that throws our own mortality right in our faces?

I've shopped with baby boomers who are looking for one level ramblers that can be adapted, and it's no small feat. Homes built in the 1950's came with bathrooms that are too small, and hallways that are too narrow. It's a major undertaking to remodel these homes.  Great for designers and contractors, not so great for the baby boomer.

Are we saying we want to age in place but are willing to pay three times as much to remodel homes so that we don't have to look at those grab bars or ramps until we need them?

What say you?

Buster Martin-An Inspiration

Throwing conventional wisdom to the wind, Buster is 101 years old, drinks 8 pints of beer a day and 14 cigarettes per day and is more agile than most Baby Boomers! He participated in and ran for 10 hours in the London Marathon (they didn't count the pit stop he made to rest and have a pint of beer).

Maxine and her boyfriends

For a little Saturday fun...take a look at this website. It was sent to me, so I can't give credit to the author.  Have a great weekend.

Maxine and her boyfriends

Plan Ahead

I've said this before, those that plan will have choices, those that don't get what's left over. I've said this in reference to planning for senior housing choices. When you plan for your future thinking about it isn't enough. Planning it out and ACTING on it will define your choices and quality of life for years to come.

David Solie over at Aging Insights has posted a must-read excerpt from his new book which is in the works...Booming On.  A comparison of two couples, one that planned for the future and IMPLEMENTED the plan, one that didn't.  Bravo, David.

The best way to predict the future is to invent it.

Alan Kay

Other Blog Articles

Develop Your Move Plan...Even If You're Not Moving Yet

I'm Not Ready Yet

Step #3 to The Senior Move Plan-Don't Procrastinate

Guilt

The Best Advice for Helping Elderly Parents Move

  Two different times over the last year I've watched two different families watch in shock and awe over their parent's decisions to move. First, they were shocked because their parents moved to a place that wasn't chosen by the adult children.  Second they were in awe of their parent's ability to make decisions that were different from their own.

I don't understand how my parents could do something that doesn't make any sense to me!

In both cases, the adult daughter, with the very best of intentions, identified a place that would be "just perfect" for mom and dad. It was close to city amenities, no stairs, nice floor plan, flat yard, and close to the family.  In both cases the parents decided that were they wanted to live was NOT closest to the family.

In both of these cases I got the same phone call from the daughter. "Lisa, you are NOT going to believe what my parents did!"  I can see it coming, but I ask "What?" "They decided they wanted to move to (name any city 50 miles from the children) and wrote an offer on a place.  I didn't even get to see it!"  Here it comes, wait for it...I ask, "Did they ever mention wanting to live in (name the city 50 miles from the family)?"  And the daughter answers (you saw this coming too, didn't you?) "Well yes, but we decided they should live closer to us!"

In both cases these very loving daughters with the very best of intentions really only missed one step in helping their parents move.  They forgot to listen. As much as we would like to insert our wishes into our parent's move plan-- we serve ourselves, and our parents much better if we stop, breathe, and listen.

As long as our parent's plan keeps them safe, financially sound, healthy, happy and in control of their own destiny there really isn't anything to complain about other than the fact that we didn't get our own way, is there? 

Tax Time Tips

With increasing demands on our time, we could all learn a lesson or two about working smarter, not harder.  This is particularly true this time of year when the weather has turned (or in MN where it's just starting to turn) and we owe it to ourselves to get out and enjoy the weather.  The tax man cometh and he doesn't  care what else you'd rather be doing. My colleague, Kathy Green from A Little Help, Inc. is a money manager and she has a few tips to help you reduce the amount of time getting ready for taxes. 

Already done for this year?  Resolve to incorporate a few of these tips NOW so next year's taxes will be easier and less stressful!

Every year, most of us find tax time stressful.  One thing you can do to reduce some of the anxiety is to keep your tax-related information organized throughout the year.  Then, when it’s time to gather your records to take them to your tax preparer or to sit down and prepare your return yourself, everything will be in one spot and you’ll be ready to go.  Put an end to searching through desk drawers or calling people for duplicate statements with just a few simple steps.

Set aside one specific spot for tax-related information.  Set up a file, a desk drawer or even a shoe box and every time during the year that something comes in that you know you will need for your taxes, put the document in your tax spot.  The secret is to just have one spot for these records.

Not everything comes in at the end of the year.  Some items you might come across during the year are things like receipts from charitable donations, both cash and non-cash donations; the receipt from renewing your car license; property tax statements; receipts from any refunds you may receive; and, receipts for any major work you may have done to your home.

One more important tip – if you receive mail during the year from your state Department of Revenue or the IRS make sure you open it and respond to it if need be.  Ignoring that mail is not an option.  Your tax preparer will be happy to help you understand the notice you’ve received and would probably help you with your response.

Training yourself to put your records in one spot really will help reduce some of the stress at tax time.  Try it!

Thanks for the helpful tips, Kathy!

Kathy Green is the President of A Little Help, Inc, a money management service for seniors in the Twin Cities Metro Area.

Life Changing Inspiration Randy Pausch

If you've been reading for a while you know on Sundays I post inspirational stories or quotes. I used to post crossword puzzles or word searches. I was working with a woman who was acting as her parent's caregiver and she told me reading insprirational stories energized her. Insprirational Sunday was born.

I know your time is precious, if you haven't seen this lecture by Randy Pausch take the time. It's worth it. I promise.

Minnesota Health and Housing Alliance Demand Model

There is a push in Minnesota to continually decrease the number of licensed nursing home beds.  The Minnesota Health and Housing Alliance has developed The Demand Model to try to predict the kind of skilled nursing we will need in 25 years to support our Minnesota Seniors.

Here are the facts:

• By 2030 on of every four Minnesotans will be over the age of 65 (compared to 1 in 8 today)
• Minnesota has fewer women available to do what is traditionally thought of as the caregiver role. Here, more women work outside the home than any other state.

The demand model predicts we can continue to have a decline in skilled nursing beds if:

• There is continued investment in home and community spending
• Acute care utilization remains constant
• An additional 16,649 assisted living units are contructed by 2030
• There is availability of family/community caregivers. They MHHA estimates by 2030 there will be 100,000 seniors 85+ with no family or others to provide informal care.

The MHHA paper does a superb job of outlining utilization. Now we need a group of leaders to begin to address issues the MHHA paper didn't mention such as:

Most Assisted living communities in Minnesota are NOT equipt or licensed to deal with residents who need two people to help them out of wheelchairs, insulin dependence, adjusting a bed-ridden patient every two hours to avoid bed sores, along with a host of other conditions. Will our assisted living communities become the new skilled nursing homes?

The MHHA paper assumes there will be enough informal care provided by family, friends and neighbors. Remember, we will be in the midst of a health care crisis because there will not be enough generation X and Y professionals to take care of the large senior population. How will there be enough of them to care for their elderly loved ones? How will our current economic status effect the long term ability of Gen X and Gen Y to get away from money making activities to volunteer time to care for the elderly?

Are we de-institutionalizing care the way the baby boomers will demand, or are we simply replacing skilled nursing beds, and now calling them assisted living communities?

What do you think?

Other Blog Articles

An Assisted Living and Nursing Home Alternative?

Types of Senior Housing in Minnesota

10 things your Assisted Living Facility Won't Tell You