Posted by Rie Umano
10 million baby boomers, which are known as the sandwich generation, are suffering from financial strain because they have to raise their kids and provide financial support to their aging parent. The health care and living expense for their parents are unexpectedly expensive. In addition, those boomers have to pay their children’s college tuition. They are financially suffering and unable to save for their own retirement. However, there are many ways to manage these expenses, but it is always necessary to plan early enough.
According to the MetLife Mature Market Institute, you need about $35,000 for daily activities such as eating and bathing for seniors. In addition, you also need about $75,000 for housing. Unfortunately, Medicare won’t cover these costs. However, long-term-care insurance helps you manage these expenses. It covers the cost of nursing homes, assisted-living facilities, adult day care and in-house care. You are required to be relatively health and young in order to be qualified. As you get older, you have to pay more premiums, so you should consider handling this risk early.
In addition to the health-care expense, there are ways to save housing expense. Medicaid which provides medical services for people with low income will cover long-term care. Selling the parent’s house and bring your parents into your house always can save your money. Also, your parents can consider a reverse mortgage, which allows seniors to release the home equity in the property as one lump sum or multiple payments. Your parents have to be 100% sure that they live in their house for the rest of their lives.
Thus, there are many ways to manage your financials in order to support your parents as long as they are alive. However, it is always important to plan early enough to make a best decision.
According to the MetLife Mature Market Institute, you need about $35,000 for daily activities such as eating and bathing for seniors. In addition, you also need about $75,000 for housing. Unfortunately, Medicare won’t cover these costs. However, long-term-care insurance helps you manage these expenses. It covers the cost of nursing homes, assisted-living facilities, adult day care and in-house care. You are required to be relatively health and young in order to be qualified. As you get older, you have to pay more premiums, so you should consider handling this risk early.
In addition to the health-care expense, there are ways to save housing expense. Medicaid which provides medical services for people with low income will cover long-term care. Selling the parent’s house and bring your parents into your house always can save your money. Also, your parents can consider a reverse mortgage, which allows seniors to release the home equity in the property as one lump sum or multiple payments. Your parents have to be 100% sure that they live in their house for the rest of their lives.
Thus, there are many ways to manage your financials in order to support your parents as long as they are alive. However, it is always important to plan early enough to make a best decision.
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