According to the AARP (American Association of Retired Persons), 89% of people over 50 want to remain in their own homes as they age. For some seniors, however, “aging in place” may not be a viable option due to health, safety or financial factors. A thorough analysis of these factors vis a vis the various senior living options available can help families make the best decision for their senior loved one. And that’s exactly what I did for Jerry and his family.

Jerry was 75 and living in a condominium that he had paid off some years prior. He had two children, both married with families, one living in Portland, Oregon, the other in Boston. Jerry had been declining in health in recent years and required 24-hour care due to a host of medical issues. He paid a home care agency $250 a day for that care.

Fortunately, Jerry had a long term care insurance policy that covered 80% of the costs of his in-home care, but that policy was due to expire in two years. Once the policy ran out, he would be relying on his savings to pay for the care. The savings would cover the in-home care for about another three years. So, after five years his only asset left would be his house.

Jerry’s family hired me to analyze Jerry’s situation and present the pros and cons of various living /housing options. I conducted a thorough analysis of Jerry’s assets and liabilities as well as his cash flow, and then presented the family and their financial adviser with scenarios related to those options so his family could prepare for the “financial cliff” when his long term care insurance ended. Those scenarios included:

• Stay in condo and get a reverse mortgage to pay for in-home care through an agency

• Stay in condo and spend down all his assets in order to qualify for Medicaid

• Sell the condo and move to a local assisted living facility

• Sell the condo and move to an assisted living facility near one of his children

Tune in to my next blog to learn the results of my analysis and the family’s ultimate decision!