There are a number of financial issues to consider when choosing a senior retirement facility, says Steven J. Sless, national reverse mortgage division manager with PRMI and manager of the Steven J. Sless Group of PRMI in Owings Mills.
If you’re paying an entrance fee, for instance, that’s most often covered by the equity you get out of your house when you sell it. But Sless says you need to ask yourself if your retirement nest egg will last if you live in one of these communities. “Also, do you have a plan to fund long-term or extended care?” he asks.
“Medicare and Medicaid will typically cover expenses related to nursing homes, but not in-home care or living in retirement facilities.” But the good news is, there’s probably gold in them thar real estate hills.
“Home equity represents 68 percent of the median American’s net wealth,” Sless says. “There’s almost $7.4 trillion in untapped senior housing wealth.”
This article featuring Steven J. Sless, CLTC® was originally published in Baltimore Magazine – doing the math.