Ridgeline sounds great; but can I afford it?

The Ridgeline lifestyle is available to the average (middle income) retiree.  It is easy to lose track of how much money we spend by staying in our own home.  That list would include the usual mortgage and taxes; but have you also considered in-home care expenses, utilities, car maintenance and gas; groceries, home repairs, home maintenance (windows, lawn, paint), insurances, cable, internet access, and telephone? Some people are paying more for a home health visit than for the entire daily charge of an assisted living community. 

Ridgeline also has the ability to purchase products less expensively than the individual due to economies of scale, and the savings are passed on to you. 

Where do I start?

There are also other aspects of affordability to consider.  

Selling Your Home:  
Although selling your home may seem impossible in a down housing market, you might consider services to help you sell faster (such as home-stagers and handy-man services) to get your home looking its best. Consult your realtor to get advice on what impact these services may have in getting your home sold quicker and for the price you want. 

Tax Deductions:
Taxpayers paying for medical expenses for themselves, a spouse, or dependent may deduct expenses exceeding 7.5% of their adjusted gross income.  Qualifying medical expenses may include a nursing home; home for the aged; and long-term care services, including meals and lodging, when the services are for medical care. The qualifications are outlined in IRS Publication 502 and a family may consider this deduction if this elder is a dependent.  Consult your tax adviser for details. 

Reverse Mortgages:
A reverse mortgage is a loan against your home that you do not pay back for as long as you live there. You would be best advised to consult a financial adviser on a reverse mortgage because they can be costly if you plan on moving or selling your home within a couple years of starting a reverse mortgage. Visit www.aarp.org for more information. 

Long-Term Care Insurance:
If you have long-term care insurance, ask your insurance agent the specifics of assisted living coverage.  Typically, long-term care insurance covers the cost of the following:

• Hired help to care for you in your own home with daily tasks such as bathing, dressing, eating, cooking, and cleaning
• Community programs such as adult day care
• Assisted living services provided in a residential setting outside of your home
• Visiting nurses such as Home Health
  
• Care in a nursing home

For more information on long-term care insurance, visit www.aarp.org or contact your insurance agent.

Medicaid:
Medicaid benefits as they pertain to assisted living are specific to the state in which you live.  States that include assisted services in their benefits have requirements that must be met in order to qualify such as level of disability; level of income; and level of current assets.  For more information on your specific state requirements, go to www.ems.hhs.gov/home/medicaid.asp (The Center for Medicare and Medicaid Services).

Veteran's Aid and Attendance Benefit:
Aid and Attendance is a "pension benefit" for veterans and/or their surviving spouses who require assistance with activities of daily living. If you do not qualify for Aid and Attendance, you may want to check to see if you qualify for either the Basic or Housebound tiers of the VA benefits.  For more information visit www.veteranaid.org or www.vetassist.org. VetAssist.org is sponsored by the American Veteran's Institute and will assist you in filing for the A&A Pension Benefit free of charge.

Life Settlements with Life Care Funding Group:
A Life Settlement is the liquidation of an in-force life insurance policy, while the policyholder is still alive, for an amount greater than the cash value.  The process takes between 30-90 days to complete.  It is the sale of an asset through a competitive bidding process, providing the policy owner with a lump sum payment that is greater than the cash value of the policy.  If your policy is active or has lapsed within the last 24 months, this may be an option for you.  For more information, speak to your Ridgeline community representative.

Perhaps the most important savings comes from the potential to decrease medical expenses, including medication needs and hospitalizations, as a result of our person-centered care approach.  The question is, can you afford not to live in a Ridgeline community?