The cost of eldercare 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 financially 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 as 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.
Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.