Reverse Mortgages in West Michigan

Reverse Mortgage Funding for Long Term Care Insurance

Isn't it funny how difficult it sometimes is to admit certain truths to ourselves?

I have reams of statistics telling me of the probability that at some time in the future, either Judy or I will need some type of of care.

But, I really don't believe it!

Nope, that someone who will need care is "someone" else -  not me and not Judy!

If you're like me, and have ever thought "How am I going to pay for that care," you might be interested in this post over at the AgeNotes blog.

The article talks about funding Long Term Care Insurance with a reverse mortgage, and might be an idea starter whether you're a senior like me, or a caregiver.

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Now you know I'm going to give you my standard disclaimer, don't you?  Remember - when talking about any financial product, it's important to consult with a qualified adviser.  If you have questions about a reverse mortgage, you can reach me - toll free in Michigan - at 877-308-1489.
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Using our Home to Stay at Home - even when we can't!

If you're married, and in your late 60's or older, this post may contain some very helpful thoughts!

Every study I've seen says that - by a large majority - most of us want to stay in our own homes for as long as we can.

But, any Long Term Care Insurance provider has statistics that show that many of us will need either in-home care, or residential care at some time in our future.

It's expensive!

Valerie VanBooven who blogs at  IdeaMarketers   has written a well thought out article exploring the use of a reverse mortgage to fund a Long Term Care Insurance policy.

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My Standard Disclaimer: Neither First Financial Reverse Mortgages or myself sell any financial product other than reverse mortgages.  Before making any purchase we strongly advise consultation with your family and appropriate advisors.
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Long Term Care Costs

Most every statistic I've seen recounts the overwhelming desire most of us share: we want to continue living in our homes as long as possible.

Up until very recently, Federal payment plans seem to have been skewed in exactly the opposite direction. They seemed  to encourage  "nursing homes" as the only alternative.

Lately that's been changing.

Perhaps statistics like those below, reported in today's edition of "USA Today," have caught policymakers attention.

"Long-term care costs
Average cost of long-term care in 2006

Private room in a                 $206 a day
nursing home                       $75,190  annually
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Semi-private room               $183  a day
in a nursing home                $66,795 annually

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Home health care aide         $19 an hour

Source: MetLife Mature Market Institute"

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In most cases, reverse mortgages can provide non taxable income to fund long term care needs.

Have you visited Agenet.com yet?

Agenet is an important resource for seniors.

Here (then click on Financial) is an eye opening discussion of the cost of Long Term Care, and a comparison of its costs vs. nursing home costs.

Scroll down to the story about Reverse Mortgages to see a suggested solution to the high cost of long Term Care Insurance.

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A reverse mortgage insures that you can continue to live in your own home with NEVER a mortgage payment.

The Wall Street Journal Opines on Reverse Mortgages

Newspapers are becoming more aware of the existence of reverse mortgages as time goes by.

You'll find a comprehensive Wall Street Journal article on reverse mortgages here.

And a strong rebuttal to some of it's points here .

Later:  I've been reflecting on Ms. VanBooven's rebuttal since this entry was posted.  I'm impressed with the intensity of her reply.  She comes across as a passionate believer in the merits of reverse mortgages.

And, like many passionate folks, sometimes all is either black or white.

That's why I take issue with some of the phrasing in her rebuttal.

She says: "When a senior talks to a "reverse mortgage specialist" who has no financial planning background (simply a loan officer), the senior ends up with a sum of money and NO plan. This is unacceptable in my view,  (emphasis added) because , as we have learned, without a plan, many seniors will come back to the reverse mortgage specialist in 6 months looking for more money."

A couple of points:

The implication here is interesting.  If you are a senior you, --and by implication-- no one else in your family, don't know how to manage money.  You need professional help, else you'll run through your money in 6 months!

Can you say "hyperbole?"

I'm not going to spend a lot of time tooting my own horn here, but I believe  that I have probably helped more West Michigan residents use reverse mortgages to achieve their own visions of a fufilling retirement than any other single person in my area.

Have I seen any one of my clients back in 6 months ... "looking for more money?"

Not a one.

Maybe because we all live here in WestMichigan, and not in California?

Finally, initials after your name generally indicate studies leading to increased technical knowledge -- and that's a good thing.

But any "Financial Advisor" or "reverse mortgage specialist"  while striving for knowledge, will ultimately serve a client better by living the teachings of the Man who is qutoted in Matthew 7:12.

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Remember, after all is said and done, only you know whether a reverse mortgage makes sense in your unique financial situation.