What is your living situation now? What are your plans for the future? OOF. No beating around the bush on this one. Wendee and I have been working with some clients on this topic for some time. And it is not an easy topic. Even if one has more than enough money saved and invested. Even if you have some level of long-term care insurance. These are only the objective, unemotional numbers. Where one lives is wrapped in emotions, memories, and all sorts of non-objective things. In some ways, this may be the third rail. But we need to share a bit of what we have learned in the last few years.
Even if you plan on staying put, living in your home for as long as you can, it would be worthwhile to take some time to contemplate the eventuality of, “then what”? The reason for this is to have some level of input in the decision of what is next. While not a thing people really want to “shop” for, it could be worthwhile. Otherwise, those estate documents and health directives with Power of Attorneys named, etc., will make all these decisions for you when the time comes. As much as they may love and care for you, their decisions may not align with what you would have chosen. Plus, one of the emotionally frustrating things can be averted with a little forethought: not having a say in the decisions in your own life.
What are alternatives to living as long as you can in your current home? Some consider downsizing, or "rightsizing." Shrinking the footprint of what you live in and shrinking the size of responsibilities can remove a lot of expense and upkeep. Some do this in regular neighborhoods, while others choose to move to 55+ neighborhoods. Pulte and Lennar have whole divisions dedicated to making these neighborhoods. Zero maintenance is one of the selling points. A lot of restrictions from the HOA are one of the detractions. They have been a very popular option for many.
Another direction one can consider, but which has further age restrictions and higher upfront and ongoing costs, is CCRCs. Continuing Care Retirement Communities are designed to have living at all levels, from homes and townhomes, condos and apartments, and then, assisted living, memory care, and nursing homes. The advantage to this solution is that it is all there, and there are no additional costs when one has health changes that create a need to change living situations. It also allows for one to remain in a home or apartment while their spouse is living in a higher healthcare need area without a change in living costs. Before you say “wow,” the way this happens is through a higher cost to “buy” your residence and a higher monthly HOA fee. These are higher because part of the price is for future needs. These are not inexpensive, but for those who can afford it, the stress of all these future decisions is removed, not only for you, but also for those you have asked to make decisions for you in the future. It can prevent a lot of strife. But there is a cost, and not everyone can afford it or even wants it. Sometimes, this becomes an appealing option if one has experienced a challenging time with a loved one in the past or has heard stories from friends of the challenges in transitioning someone’s living arrangements.
In the last few years, Wendee and I have been involved at some level with 6-8 clients working through these decisions. Each is different. We do not pretend to have the answer. In fact, as I write this and am thinking of each person, they all have different solutions for their unique situations. What I can tell you is that everyone involved cared deeply about finding the right answer. We work with those we are allowed to work with by the directives you have provided us.
So, at the very least, here is my ask, if nothing else comes from this: please take a moment and ensure your documents (estate, health directives, POAs, etc.) are all in order and that the people YOU want involved are up to date. Check with Wendee and make sure we have what we need on file so we can talk to people in a time of need.