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How to Pay for Senior Care

How to Pay for Senior Care
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The cost of senior care is prohibitive for many older Americans. Nursing home care or a stay in an assisted living facility has become necessary for maintaining their medical needs and quality of life. But they’re unable to afford the cost of such expensive facilities. To ensure financial assistance in your senior years, proper planning is essential. There are various resources seniors can use to help defray the expenses of senior care.

Medicare Benefits 

Medicare is usually available for short-term stays in nursing homes and transitional care facilities. Medicare benefits have a time limit; it is designed to provide temporary assistance until you’re able to get back on your feet and back in your own home. However, they can be useful in providing the necessary interim financing, until other options are available.

Medicaid 

For seniors with restricted income and few assets, Medicaid is the ideal option for paying nursing homes, home care or other forms of assisted living. Medicaid is also available for individuals who have income or assets that exceed the limits. This additional income has to be sent to a trust that is dedicated specifically to their personal care. You may want to consult a Medicaid expert in your state to find out more about your eligibility.

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Veterans Programs

If you or your spouse served as a member of the armed forces, there are resources in place that can help provide for the later days of your life. Some veterans benefits, like the Aid & Attendance Housebound benefits, come with a higher asset and income limit than many other programs. Contacting your local Veterans Office is the best way to get started on this journey, as the people there will be able to help you get the information you need. If you are aware that benefits due to you are being denied, be persistent in making calls till you find the answers you seek.

Non-Medicaid Government Assistance 

Many states offer their own non-Medicaid assistance to help seniors pay for their nursing home care. These programs may include managed long-term care waivers, assisted living programs, and many more. Other programs provide in-home assistance to elderly individuals who are hoping to live in their own homes for as long as possible. Still others provide specific care for those with dementia, like Alzheimer’s patients.

Non-Profit Assistance 

There are many non-profit programs that offer assistance in paying for the medical care of individuals who need nursing homes or assisted living care. Non-profit nursing homes usually offer paid care on a sliding scale based on income and asset ratios.

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Private Health Insurance 

Most private health insurance plans don’t automatically include the cost of long-term medical care. With careful forethought and planning, however, you can acquire a rider for your policy that will help cover the cost of nursing homes or assisted living facilities. The key to this type of insurance is to take the policy well before you really need it.

Life Insurance 

When you take out a life insurance policy, you usually intend to use it to help cover those final expenses that you don’t want to burden your loved ones with. Some life insurance policies, however, come with an Accelerated Death Benefits rider that can be used before you die. Choosing a policy that will pay out either: A) a portion of your death benefits or, B) the full amount of the policy, will allow you to use those funds to offset the cost of long-term care.

Annuities 

Annuities are a great source of income during those senior days. Even better, you can sometimes withdraw money tax-free from the annuity to help pay for long-term care. There are several types of annuities, and in general, the holder of the annuity can choose to make a single payment or a series of payments to the insurance company.

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Long-Term Care Insurance 

This very specific type of insurance is designed to pay for long-term care as you get older. This coverage can be purchased as a separate LTCI policy or be added as a rider on your existing life insurance policy. The earlier you add this rider to your insurance policy, the less expensive it will be. But, not all LTCI policies are created equal, so be sure to check out all the fine print to ensure that the plan fits your needs.

Bridge Loans 

Bridge loans are designed to provide one lump sum immediately when you need it. As a long-term care payment option, bridge loans are only efficient if you anticipate a large source of income — for example, the sale of your home, to cover the cost in the near future.

Reverse Mortgage 

A reverse mortgage allows you to draw money out of your house value without having to sell it outright. This is a great way to pay for short-term care in a nursing home or assisted living facility. This method also allows you to continue to draw on that money long-term, giving you a source of income throughout the rest of your life.

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Private Payment 

Private payment for senior living choices like a quality nursing home is the best option for many individuals. It allows you to choose your nursing home based on your needs rather than leaving it to the mercy of programs like Medicare, Medicaid, or any other organization.

No one really wants to think about the need for long-term care, either for themselves or for a loved one. Unfortunately, as life expectancy increases, the need for long-term care goes up along with it. Planning wisely for future medical needs is a critical part of ensuring that both you and your loved one are well cared for, when that time eventually arrives.

Featured photo credit: huffingtonpost.com via i.huffpost.com

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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