Text Box: Volume 1, Issue 2 Text Box: Text Box: Lake Tahoe Mortgage Corporation Text Box: December 2006 Text Box: Reflections—From Your Friends at Lake Tahoe Mortgage Corporation Text Box: During the holidays, most of us spend more time reflecting on family, friends, neighbors, and those who influence us in very positive ways. All of us at Lake Tahoe Mortgage Corporation are so appreciative of those who have supported us over twelve years with their business and their friendship. Each year we rededicate ourselves to providing an ever-increasing level of customer care. We talk clients for life; may that never become an empty slogan. It is the fervent resolve of everyone in our company to continue to earn the respect and the business of everyone we call customers. May each of you, during this very special time of year, spend just a little more of your time reflecting on family, friends, and those who have influenced you. May your holiday season be blessed with happiness and prosperity. From you friends at Lake Tahoe Mortgage Corporation

Helping Seniors Make Informed Financial Choices
Text Box: Mortgage Planning: The Missing Link for Long Term Care Needs

The November 20 issue of Investment News contained an article that focused on the importance of looking at long term care options for clients.  According to the San Francisco-based American Society on Aging, more than 70% of all Americans reaching age 65 will need long-term care at some point in their lives. 

Common health issues driving this need could include heart disease, hip fractures, strokes, and Alzheimer’s disease.  All these conditions, and more, are likely to place large financial burdens on seniors and their families.

The fact that people are living longer is posing some added financial strains that haven’t been as large of an issue in the past when life expectancies were not as long.  Financial advisors need to adapt to this situation and focus as much on long-term care planning as on other planning needs such as retirement, estate planning, and education funding.  Every area of long-term care comes with costs.  According to a few studies conducted by New York-based MetLife, Inc.:

· The national average private-pay base rate for an individual residing in an assisted living facility is $2,905/month or $34,860/year.            

· The national average rate for a private room in a nursing home is $206/day or $75,190/year.  A semi-private room costs an average of $183/day or $66,795/year.

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There are two ways to finance these needs:

· Out of pocket

· Long-term care insurance policy.

 

Long-term care is not covered under health insurance or Medicare.  Although Medicaid covers most long-term care provided today, there have been changes to the law in recent months that make qualifying for Medicaid more difficult than it has been in the past.  This begs the question, “Where will the money come from to fund clients’ long-term care needs?”  That is where a reverse mortgage comes in. 

Long-term care planning is poised to become the “next big thing” in financial planning.  A reverse mortgage professional can add tremendous value in this area by utilizing the proper mortgage and real estate equity planning strategies with clients and financial advisors. 

For more information on the growing use of reverse mortgages, call us today!