Real Sage Advice

Baby Boomers Downsizing? Tips on your next home-or-Real Estate Investors Give Those Baby Boomers What they Want

Earlier this week I wrote about the widening gap between what my baby boomer clients want in senior housing, and what the developers are offering. A number of times over the last year I've looked at Ranch style homes (we call them ramblers in Minnesota) with baby boomer clients who had the hopes of purchasing a home with all the facilities on one-level. They were much too young for senior housing, but wanted to prepare for their own aging by finding a home where they could successfully grow old. This is REALLY tough to find. Here's a wish list of what my baby boomer clients said they wanted when it was time for them to downsize.

Note: it's more helpful to consider this list for the stage of life vs. assume this is what all baby boomers want.

Note for Real Estate Investors: Go study Universal Design. Then copy and paste this list into your business plan. It will be worth it's weight in gold.

Floor plan

• Large Master Bedroom, lots of closet space, and windows that don't impede where the furniture should be placed.
• Formal Dining Room.
• An efficient kitchen. In order of importance: (i) a tight triangle between refrigerator, sink and wall oven (I don't want to have to bend), (ii) storage space, (iii) counter space.
• There should be enough room for me to get through all the hallways and work in the kitchen with a walker or wheelchair. One corner that's too tight for a walker is a deal-breaker. Bathrooms and Kitchens are typically the culprits.
• A separate tub and shower are ideal. The bathroom door should not be in the way of use of the bathroom.
• Large living room. If smaller, another bedroom on this floor could be made into a TV room.
• Washer and dryer on the main floor. A stackable unit could be tucked into a closet, just get them on the main floor.
• If the foundation is large enough to allow for two bathrooms, a master bath with separate shower and bath, and two sinks is preferable.

Mechanicals

• Windows. New ones, and lots of them.
• If you have an older space heater in the basement, a wood burning stove or older furnace, or any other older appliance--replace it. A safe home with newer working appliances is preferred.

Universal Design Elements

• Lower touch light switches
• Higher outlets
• Wider doorways and hallways
• Adjustable shelving and clothing rods in closets
• Door handles instead of knobs
• Smooth transitions between floor surfaces
• If a ramp is needed to eliminate stairs to the entry of the house, put the ramp in the back of the house.

Make it look good

• No wallpaper
• Neutral colors
• Modern finishes
• Don't skimp on finishes or workmanship. This clientele will notice

Location

• The home should be in a first ring suburb close to shopping, pharmacist, doctor and hospital
• The topography of the lot should be flat
• A quiet road with little traffic noise
• A low crime area with higher than average appreciation of property

What else would you add?

Life After Retirement

Take a look around the internet and you'll see article after countless article about baby boomers and retirement. What will our generation decide to do with the "second half of life" that many of our parents didn't have? What kinds of things will we do to stay vital?

Second Journey's newsletter Itineraries offers some compelling thoughts on the topic of baby boomers and retirement. Jan Hively, founder of the Vital Aging Network in Minnesota is the guest editor.

Sandwich Generation-Cute Name, Deadly Statistic

An Associated Press article  reported the suicide rate for 45-54 year olds (the sandwich generation) rose by 20 percent, the highest it's ever been since the Centers for Disease Control has been tracking.  In contrast the suicide rate for 20-somethings rose only 1 percent.

Here's a quote from the article that sent me reeling:

"Experts said they don’t know why the suicide rates are rising so dramatically in that age group..."

Are ya kiddin me?  Let me take a stab it. 

Many Baby Boomer's are at the peak of their career with both responsibility and earning potential. This is also the time when they are most likely to be focused on trying to earn as much as they can, and save as much as they can since so many are ill-prepared for retirement.

With the strain of trying to save for retirement come other conflicting demands of baby boomers' time and money. Kids and parents. Boomerang kids living at home, elderly parents who need more time, and maybe money are a drain on the baby boomers' resources.

If you're lucky enough to be able to be a 24-hour caregiver to your aging parents, it's a blessing and also an incredible strain. Caregiving is an unbelievably demanding job-ask any parent. Quadruple the responsibilities of a full-time caregiver with full-time employment and parenting and you've got a disaster waiting to happen.

I see the results of the sandwich generation everyday.  When I'm called to meet with a family about helping a senior move, the stories repeat themselves. I see frazzled adult children spread too thin and elderly parents too proud to ask for help or too afraid to be seen as a burden. 

The adult daughter is usually the one who takes charge of helping elderly parents move.  The daughter is usually the person who wants to be the contact person between me and the family. This is also the person who is balancing other caregiving responsibilities.  I spend as much time reassuring and supporting the adult daughter as I do the elderly parents who are making the major life change.

Families are unraveling at the seams as we teeter over the cliff of the health care crisis, and the experts can't figure out why suicide rates are rising so dramatically with this age group? 

This study was conducted by looking at death certificates so there isn't any data to back my hypotheses-but you don't have to be a rocket scientist to see the crisis that's emerging.   

“The middle-aged are often overlooked. These statistics should serve as a wake-up call...”   

Let's hope.

Minnesota Baby Boomer Study

The Minnesota Baby Boomer study is in! Ecumen , Minnesota's largest non-profit senior housing company, surveyed 564 random boomers across the state of Minnesota via professional telephone interviewers.

A few of my own observations.  You've heard Boomers are all about image?  Well here are a few stats that just might support that stereotype:

• Nearly 80% prefer the term "life-care community" to "nursing home"
• 59% prefer the name "community with services" to "assisted living"
• 93% say they will live in a home rather than rent (not if senior housing in Minnesota stays the way it is now.  There aren't a lot of options to own in senior communities as they are defined today)

This one doesn't make any sense-52% of Boomers said they'd like to live in a rural setting, but 99% say they want easy access to health care, 91% want easy access to shopping, 90% want easy access to transportation.  Rural communities don't typically have all those things. Even more confusing to me, 93% feel that municipalities should build senior housing closer to community amenities.  Hunh. Show me a rural farm on a bus line.  Doesn't happen. Anyways,

Check out this report to see how Boomers feel about:

- Longevity and images of aging
- Words We Use
- Care Options and Paying for Them
- Where They'll Live
- Working as a Senior
- Technology
- Civic Engagement

Power of Language

I attended a networking event today. It was a ladies luncheon.  Network for 30 minutes, and listen to a speaker talk  for 60 minutes, and enjoy a nice lunch.  At the beginning of the meeting we were asked to stand up, introduce ourselves, and give our elevator speech.  So, it came my turn, I stood up and gave my elevator speech which goes something like this, 

Hello, my name is Lisa Dunn and I specialize in working with seniors and their families.  When it's time for a senior to make a move there are often 30+ years of memories, momentos and deferred maintenance that need to be addressed before the house can be put on the market.  My specialty is to provide a move plan and provide the services to simplify the transition before during and after the move, including the sale of the house.

When I finished one of the ladies attending the event said something like "Wow, there are a lot of Boomers for you to help." (Note: I said "seniors" she heard "boomers") So, I replied "I'm often contacted by the Baby Boomers to help them with their parents."  She nodded, smiled and raised her eyebrows as if my comment added something to her understanding of what I do. I felt like I had to add this:  "Boomers aren't seniors." 

While boomers might be interested in some services to help rid themselves of many years of momentos, they aren't seniors.  Someone needs to talk with AARP about defining seniors as 55+. 

And, I suppose I need to do some thinking about the words I use in my elevator speech.  Perhaps "elder" would be a better choice of words. 

Boomer impact on housing

I am fascinated at the effect Boomers will have on our housing market (and our job market and our economy in general). About 1 in 3 adults are Boomers. The oldest Boomers are turning 60 (at the rate of one every 11 seconds) and the youngest are turning 42. Nearly half are in their 40s so retirement isn't imminent for most Boomers.

If you've been paying attention, you've heard a lot of speculation about what Boomers plan to do in regards to their housing. It's one of my favorite past times-speculation. (You'll see me pull out my crystal ball from time to time to make my predictions. It will be fun to read them later to see how I do). There was a LOT of speculation about Boomers-primarily empty nesters- moving back down town. There was a condo-craze the last two years in down town Minneapolis. You can't shake a stick without hitting one of the new developments. They are beautiful inside and out. They have all of the latest amenities to appeal to the image-conscious Boomer. When I first heard this I thought--wait a minute. I have a very large family and all of my aunts and uncles are Boomers. All are empty nesters. None are moving downtown. The Boomers I know that migrated to the suburbs are staying put. No wonder there are so many empty condos sitting on the market in Minneapolis. A serious case of mis-calculation. Too bad those developers didn't ask me (OK, I'm kidding. Sort of.)

There are a number of Realtors gearing up to become specialists in the resort and lakeshore properties. They seriously believe that Boomers are going to be buying up these properties in droves. Today, 3 out of 4 Boomers have no investment properties. Today, 54% of Boomers say they will have trouble making ends meet once they retire. Most Boomers plan to work well past 70 years of age.

Brace yourself, here it comes, the crystal Ball

If Boomers don't see themselves having the cash flow to retire while they only own one property, things would have to drastically change for them to be able to purchase a second home. If you live in Minnesota, are a Boomer, want to retire and own one home, WHY would you buy a home in Northern Minnesota were it's COLDER!?! I can see moving to a warmer climate, but not buying a resort property for retirement. Again. looking at my little micro-cosm of the world I have one aunt and uncle that purchased a home in Arizona, two that purchased time shares. The rest might be thinking of downsizing, but likely won't move more than 15 miles away from where they are currently located (the same way our elders tend to stay put). The sale of resort properties may increase, but I predict the driving force will not be our Boomers wanting a second property for retirement.

Source: National Association of Realtors Presentation on Baby Boomers

Sandwich Generation Unhappy

Last night on the news there was a report that in America the 40 our work week is all but obsolete.  The new work week is 50+ hours per week. An article in USA today reports that women from mid-30's to mid-50's are the least likely to report being happy.  Later marriages, later child-bearing, working more hours, and living longer are contributing to a situation were women in this age bracket are becoming part of a perfect storm.  As many Americans are one crisis away from a bankruptcy, women in this age group are one crisis away from a break-down. When normal day to day functioning feels so out of control, a crisis inevitably would send her into a tail spin. Sandwich generation is a cute name for a very serious situation.  We have 60 year olds taking care of a 92 year old parent and a 16 year old child.  In fact, Minnesota has the largest percentage of non-professional caretakers in the nation, and we all owe them a debt of gratitude.  Without them, we would have even more seniors living unsuccessfully at home.  If even 1% of the caretakers in Minnesota decided to stop caretaking, it would completely overwhelm our health care system.

Here are some statistics from the USA article I referenced above:

CAREGIVING TAKES ITS TOLL Caregivers say their lives have become more difficult in a number of ways: 90% More stress or worry 69% Less time spent with family and friends 51% Now taking more medications 37% Less time spent at work 10% More frequent use of alcohol or prescription drugs

If you know of someone who is being 'sandwiched" by all their responsibilities, encourage them to reach out for help.  The Senior Linkage Line is a great resource that can offer help finding respite for caretakers.  1-800-333-2483

Don't vote on November 7th.

How many times have you have taken advantage of your right to vote, stood in line, tucked yourself behind the curtain, with pencil in hand, ready to cast your vote, and only recognized 2-3 names on the ballot!?! On November 7th, Don't vote. Don't vote until you know where the candidates stand. This is a new advertising campaign you'll see from AARP.  You can see the AARP commercials, find out which district you live in, who your candidates are, and where they stand on the issues that are important to you at http://www.dontvote.com.

Fall-A time for taking inventory

There are many different kinds of sandwich breads- the crispy thicker breads such as sourdough or bagels, and the white mushy stuff with little nutritional value (think WonderBread).  The sandwich generation is resting on the soft plyable squezzeable and smushable WonderBread.   Squished between the demands of aging parents, and boomerang children staying at home longer, the sandwhich generation is being pummeled from all sides for both time and money. The Sandwhich generation will likely live longer than the generation before them, and will define for future generations types of housing and health care that will be available. The kinds of options you have available to you depend on two things. Your health, and your finances.  The key is to plan. 

Below is a checklist to help you and your parents plan for your healthcare and for emergencies. First, do these things for yourself.  It's an invaluable learning experience you can share with your parents and your immediate family will thank you!  When you're done, work with your parents to help them get their legal and financial houses in order.

1. Once we enter our 60's we should be taking a look at long term care (LTC) insurance. Typically, the sooner you buy it, the more affordable the premiums will be.  I dislike insurance as much as the next person, but in this case, ltc insurance will give you options.  What price would you put on having options for your health care that give you a sense of dignity and community?   One tip, make sure you read the fine print.  Understand if your policy offers home health care, and under what circumstances your eligible for benefits.

2.  Three important documents we all need to have. First, is a document called 5 wishes.  This is a health care directive that is recognized as a legal document in Minnesota.  It's hard to imagine all of the possible scenarios under which we would need to call on someone to make health care decisions for us.  The 5 Wishes workbook walks you through possible scenarios and is very helpful in helping you define how you'd like to be treated if you were incapcitated.  It's very helpful for your health care representative to have this document so *YOUR* wishes can be carried out.  Second, get a durable power of attorney!  If you or your parents become disabled, you'll want someone to handle your bills and finances.  A durable power of attorney gives the person you name the authority to make financial decisions.  Make sure you pick someone you trust.  Third, make sure you have a will.  In Minnesota, by law, we all have a will.  However, you may want to have more control over how your assets are dispersed. 

3.  Take inventory of your assets and put the information in one safe place, and then make sure your power of attorney and health care representative know where to find them.  Index your bank account numbers, social security number, stocks, insurance policies, emergency contact numbers, 5 wishes document, wills, medical records, etc.

4. Work with an elder law attorney. At some point you or your parents may decide to sell your home and downsize, or move to a senior community.  *BEFORE* you list your house with a real estate agent, you should be talking with your estate planner. You will be liquifing a large amount of cash when you move.  You'll want to know how you can minimize taxes, as well as plan for retirment and health care with those dollars. You'll want to protect your assets and your family with proper planning.