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Planning for Today and Tomorrow
A Retirement
Workshop
St. Charles parishioner, Myra Robinson, organized a two-part workshop on retirement issues, offered May 9 and 16, 2009. The first part looked at Legal and Financial Aspects of Retirement Planning, with presentations from experts on reverse mortgages, law, retirement planning, and long-term care. The second part examined living options and health care concerns, with presentations from experts on how to de-clutter your home, downsizing vs. retirement community living, home care vs. assisted living. Following the presentations, participants had an opportunity to ask questions of the presenters. Part 1: Legal and Financial Aspects of Retirement Planning Security, Independence, and Peace of Mind Presenter: Joel E. Stall joel.e.stall@wellsfargo.com 703-502-1350 Joel Stall is a Reverse Mortgage Specialist with Wells Fargo Home Mortgage. He received his BS degree in Finance from State University of New York at Buffalo. He has extensive knowledge of the workings of residential lending. Mr. Stall focused on reverse mortgages, a vehicle for persons over 62 to get cash for the equity they have built up in their homes. Under this program, the home owner receives cash and makes no mortgage payements while s/he lives in the house as a primary residence and continues to pay taxes and insurance on the house. In taking cash out of the house, the home owner has two options: (a) as a line of credit to draw against as cash is needed, or, (b) as cash for a fixed term. The home owner pays no tax on the money received. The cash given to the home owner accrues "deferred interest," but s/he cannot be forced to leave the property as long as taxes and insurance are paid, even if the "deferred interest" on the mortgage exceeds the value of the house. Mr. Stall distributed a handout, "Your Reverse Mortgage Guide: Reaping The Rewards Of A Lifetime Investment In Homeownership," that contains a lot of helpful information on reverse mortgages, including a Questions and Answers" section. He also referred to another publication that can be obtained from him, "Senior Citizens Handbook." Estate Planning and Elder Law Presenter: John N. Rodock jnrodock@ober.com 202-326-5004 John Rodock is an attorney who has been in practice since 1982, with offices in Falls Church and the District of Columbia. He specializes in estate planning, probate avoidance, wills and trusts, elderlaw, retirement plans, taxation, beneficiary designations, powers of attorney, and other estate planning documents. He graduated from the University of Notre Dame and got his law degree from the University of Virginia. Follow this link to view his full bio: http://www.ober.com/shared_ Mr. Rodock focused his remarks on ways to determine how your assets will pass on your death. He talked about the need for a Will and some of the issues to consider in writing a Will. He explained how Beneficiary Designations are an important component in estate planning. He described how important it is to choose carefully the Agent you appoint through any Power of Attorney document you might write. In talking about Advance Medical Directives, Mr. Rodock noted that a template is available through the Arlington Diocese's website. Mr. Rodock concluded his remarks by talking about special legal concerns that Seniors might have (such as writing a Will in the case of a second marriage, especially if there are children from the first marriage, and, preserving family harmony). Mr. Rodock distributed a handout, a folder with an outline of his presentation, background information on Estates and Trusts, current provisions of the Tax law regarding Estate, Gift, and Generation-Skipping Taxes, and a Personal Information form for participants to use in assembling information for Estate Planning. To see an outline of Mr. Rodock's presentation, click here. Financial Planning Presenter: Michael K. Ankuma michael.ankuma@edwardjones.com 703-237-8723 Michael Ankuma is a Financial Advisor with Edward Jones. Prior to that, he was a corporate banking officer with Central Fidelity Bank, Signet Bank, F&M Bank, and HSBC. He earned an undergraduate degree from the University of Ghana, a Master of Science degree from the London School of Economics, and an MBA fro George Washington University. He serves on the Boards of Directors of several Northern Virginia organizations. Mr. Ankuma talked about the five key steps one needs to take to achieve financial goals. Each step is guided by a question: 1.
Where am I today? (List current needs, monthly expenses,
retirement plan balances, brokerage and bank balances, etc.)
2.
Where would I like to be? (Consider future plans and needs, such
as living a comfortable retirement, funding a child's education,
helping support family members, buying a second home).
Is Long-Term Care Insurance Right
for Me?3. Can I get there? (You probably need the help of a financial advisor to assess your current situation and future requirements to create and implement strategies that will let you achieve your goals.) 4. How do I get there? (You will need to consider a variety of asset allocation models and select an appropriate mix of investments.) 5. How can I stay on track? (Meeting at least annually with your financial advisor will allow you to assess how well you are doing in terms of the goals you have set, as well as making appropriate adjustments for changes in your circumstances.) Presenter: Patricia E. O'Neill pat.oneill@ltcfp.net 703-534-3255 Patricia O'Neill is an independent insurance agent who specializes in long-term care insurance. She helps individuals and corporations select long-term care plans that are appropriate for their situations. She is a member of several insurance association groups. Mrs. O'Neill distributed a brochure, "Do You Hav A Crack In Your Nest Egg: Preparing for Long Term Care can preserve your life's savings." She described categories of people for whom long-term care (LTC) insurance is appropriate and those for whom it is not appropriate. As a general guideline, anyone with liquid assets of $50,000 or less if single ($150,000 or less for a couple) probably does not need long-term care insurance. Beyond those limits, everyone should consider LTC insurance that is appropriate (i.e., an appropriate level of coverage for a long enough term) and affordable for their situtation. The average length of long-term care is 4.5 years for those who are cared for at home, 2.5 years for those in nursing homes, and 18 months for those in assisted living. The chance of needing LTC insurance is greater than needing to use your car insurance to cover a loss, or your health insurance to cover major health costs. Those who are 65 years old or older have a 70% chance of needing long-term care during their lifetimes. There are more than 12 million people in the U.S. today who need long-term care: 82% are at home or in assisted living and 18% are in nursing homes. The costs of long-term care are high. In Northern Virginia, for example, nursing home care costs $80,000 to $120,000 per year; assisted living costs $42,000 and up per year; full time home care costs $40,000 to 60,000 per year; and adult day care costs around $17,000 per year. Part 2: Housing, Home Care, and Long-Term Care Facilities Housing Considerations Presenter: Leslie Hutchison, SRES leslie@virginiahometeam.com 703-675-2188 or 703-861-8119 Leslie Hutchison is a Realtor who specializes in counseling seniors on the best choice for their retirement housing. She helps them consider downsizing to one-level living, choosing a retirement community, modifying their existing home, or finding a reverse mortgage that will allow them to stay in their home and have monthly income for living expenses. Mrs. Hutchison reviewed some of the questions that confront seniors as they consider housing in retirement: sell their current house? move to a new house? rent their current house? rent a new home? modify their current house? where to move (independent living, assisted living, nursing care)? She noted that many builders today are including first-floor master bedroom suites in the houses they are building so that seniors can stay in their houses longer. The houses are often designed to allow children and grandchildren to live on the upper floor. Mrs. Hutchison offered three publications to anyone contacting her: one deals with assisted housing options, another with whether to buy or rent, and the third that talks about how much you make in selling your house vs. how much you get to keep. She also talked about some of the psychological considerations of downsiding and the need that some people have for help in de-cluttering their homes. She also shared with the participants her conviction that the real estate market has reached a bottom, citing an increase of buyers in recent weeks as well as multiple offers on listings. Home-Based Care Presenter: Jason Sager jason.sager@homeinstead.com 703-750-6644 Jason Sager graduated from Western Michigan University and received an MBA from Louisiana State University. He is Franchise Owner of Home Instead Senior Care of Fairfax, a Certified Senior Advisor (CSA), a member of the Annandale Chamber of Commerce and the Rotary, and a member of the Board of Directors of the National Capital Area Alzheimer's Association. Mr. Sager suggested five questions for the participants to ask potential providers if they are searching for home-based care: (1) Are your health care workers
employees (i.e., covered by Social Security and Workers Compensation)
or contractors? Do you do background checks on them and
Department of Motor Vehicle checks? He noted that companies with
health care workers who provide personal home care are required to be
licensed in the State of Virginia. "Registry" companies (i.e.,
those who provide contract workers) are not required to be
licensed. Both types of companies are usually insured and bonded.
During a discussion, Mr. Sager talked about costs and charges of
home-based care, using data for Northern Virginia. About 85% of
all service provided is "private pay," i.e., not covered by
insurance. Another 5% is covered by the Veteran's
Administration. Between 5% and 10% is paid through Long Term Care
insurance. Medicare does not cover "custodial care," which is
what most home-base care is. Many home-based care providers
(including Home Instead) do not accept Medicaid patients because
Medicaid reimbursement levels do not cover their expenses. For
custodial care, Medicaid reimburses only $14.76 per hour. The
companies are paying their workers $11 per hour plus Social Security
and Workers Compensation, bringing their cost before profit over the
Medicaid reimbursement level. The normal cost for custodial care
from a licensed Home-based care company is $20.96 per hour, with a
minimum of 4 hours per day.(2) How do you find your workers? (His company, on average, interviews 25 candidates for every one they hire.) (3) What training do you provide to your workers? Do you have space and equipment that you use for training? Personal care providers are required to have at least 12 hours of continuing education training each year. (4) What benefits do you provide to your workers? Medical insurance? A 401(k) program? (5) How do you assess worker performance? For example, his company visits every home at least once a month and checks on living conditions in the home to be sure the worker is taking adequate care of the person. They review the Care Notes every week. They have a ten-item weekly satisfaction survey and post the results online for all to see. Long-Term Care Facilities Presenter: Myra Robinson myragourley@gmail.com 540-557-7779 Myra Robinson specializes in helping people explore appropriate assisted living and Alzheimer's care options. As a Director of Community Relations for Sunrise Senior Living, she oversaw the move-in process and counseled seniors and their families on appropriate plans of care based on health and financial status. She is a member of the St. Charles Circle of Caring, the American Cancer Society, the Fairfax Hospital HELP program, and Vice Chair for the Falls Church Chamber of Commerce. She is a candidate for the MBA degree at George Mason University. Mrs. Robinson identified five types of long-term care facilities:
Other Long-Term Care Considerations Presenter: Gary Hughes arlington-crd2@emeritus.com 703-294-6875 Mr. Hughes is Community Relations Director at Emeritus at Arlington, formerly Brighton Gardens. Mr. Hughes spoke about the importance of considering resident-run activities as a strong indicator of the health of an institution. He also suggested that it is important to take into account not only how well a facility might meet a person's social needs but also how well it might serve his/her spiritual dimension and the desire to have meaning during senior years. Mr. Hughes described how many long-term care facilities have family support groups and how important those groups are, not only for family members but also for the residents of the facilities. Persons wanting more information on any of these topics can contact the presenters directly or the seminar organizer, Myra Robinson (myragourley@gmail.com or 540-557-7779). |