Financial Information

For many seniors, the idea of retiring to a community is one which they do not relish. Most people’s retirement plans include staying at home, perhaps with some visiting nurse or assistant if health needs require, and not moving into a different environment.

Sometimes this is based on a financial decision, as the cost of entry to a senior community can be prohibitive. Nonetheless, there are certainly situations where moving to a more carefully monitored environment is in your best interest.

Instead of waiting for the time that when an assisted living or nursing home option is required, many people of retirement age are considering continuing care retirement communities, designed for seniors who currently are independent but want to have security of care as they grow older. These communities combine independent living, assisted living, and skilled nursing facilities in one setting, which means that the move to one of these is the last move you need to make.

There are many financial issues to be considered when contemplating your retirement living, and whether it should be in a community. There is usually a high entrance fee, sometimes refundable in part if you choose to leave soon after you get there.

What is probably more important to you, however, is the month to month cost for the services offered. In this respect, you should seek expert help from a financial consultant, like Ken Himmler (www.kenhimmler.com), who together with the company Integrated Asset Management (www.iamllc.biz) will be able to help you make sense of what is on offer.

You should know that some communities have begun to offer their services as a monthly rental, with health-care costs being paid as they are incurred, rather than in the traditional “life care” entrance fee. On the other hand, a true “life care” community, as defined by the state of California, must give guaranteed health care coverage for life, and also guarantee that if the resident runs out of money they will not lose their place.

In the absence of such a stringent requirement, you need to examine carefully the contract with the community, and understand how monthly fees may increase in line with an index. As this would be your last move, your retirement planning should be detailed, and you should not make any decisions in haste. If you decide that center retirement is for you, then carefully weigh up your options before selecting the community.

Authored by Kenneth Himmler, Sr.

It is surprising to me how many people I speak to who think that when they reach retirement age they will sell the family home and move to a new area that has appealed to them in the past. The idea of a Florida retirement, for instance, is one that is deep rooted in the collective consciousness. There are pitfalls in such an approach, and it needs careful consideration before any drastic steps are taken that may be regretted later.

The principal problem appears to be that people expect to be able to dramatically change their lifestyle for the positive, without taking account of possible negatives associated with the move. The classic issue is not having any friends in the area, but unfamiliarity with the area facilities and even the shopping can also make retirement living disappointing.

If you are financially able, you might want to consider buying an investment property in the area that you think you want to retire to, and try it out on vacations to see how you cope with the differences. A vacation will always be a different experience from living there full-time, but your property investment can be sold on if you find you are getting doubts about your retirement plans.

If Florida is a place you are considering, you will find that property there is exceptionally good value right now. In some areas, it is selling at less than half its previous price. While the bottom of the market may or may not have been reached, second homes there are now very affordable, and this may be the best opportunity to enter the market that you will see.

Of course, when considering a major purchase you should consult an expert for investment advice, and Ken Himmler (www.kenhimmler.com) and Integrated Asset Management (www.iamllc.biz )

will be able to advise you on the best way to approach the issue of buying another property. You should always take into account any tax issues, either present or future, which this might create, and consider which investments should be liquidated, if necessary, to afford the retirement home of your dreams.

I was looking through some websites yesterday that listed property for sale in Florida. A Florida retirement is one of those ideas which many people have in mind as retirement approaches, and quite a few people like the concept of retirement living in a sunny and warm climate. You may also be interested in investment properties that you can rent out to get a regular income.

It is amazing how much house you can buy for a reasonable price in Florida. In fact, it is second only to California in how much property has declined in value in the past year. They say that the prices are now around where they were in 2004, and it may be that they have not finished going down yet. As you approach retirement, in the light of current history it is very hard to know how best to preserve your capital through safe investments so that it lasts as long as you want.

While no one can predict the future, it’s generally agreed that you get the best protection by having diversified investments, so that no particular market sector has a major effect on your equity. While diversification is often talked about purely in financial terms, for example by owning several different mutual funds, the concept can be extended to owning different types of investment, including property.

If you decide to buy investment property and rent it out, there are many factors which you need to consider, and you may decide that the disadvantages outweigh the possibility of income and capital appreciation. However, owning a second property that you rent out can also be a tax efficient investment, and if you are interested in being a landlord it is a good way to get a passive income after you stop working.

What is important above all is that you get expert advice before going off and doing your own thing, particularly if you have already attained retirement age and cannot look forward to earning more income. That’s why it is great to have a resource such as www.kenhimmler.com to get investment advice to steer a course to the future. If you are ready to create a financial blueprint for your future, you need to contact the group at www.iamllc.biz , where you can find the guidance you need to make retirement years the best years of your life.

Authored by Kenneth Himmler, Sr.