susanfair, it sounds like it is time for them to downsize to fit their tight budget. There are apartments in senior communities that are quite reasonable. This would get the burden of the mortgage, taxes, and home maintenance off their shoulders. It doesn't have to be assisted living if they can still live on their own.
If their medical bills are a lot, I get the feeling they are not taking full advantage of their Medicare benefits. Are they on a good Advantage program, such as Blue Advantage or with Humana? My mother has Blue Advantage and we have little out-of-pocket expense, though she has several medical problems. The Advantage programs I mentioned also cover prescriptions, and will pay most of the cost of generics.
Many of the people who drew their money out of the market in 2008 were hurt badly. The market recovered, but people who took money out did not benefit from the recovery. I feel for those people who lost so much.
GA, the shock was that this store was about four geographical miles from my parents' house, but sociologically on a different planet. It made me realise that eating well isn't only a matter of money: it's no use thinking you'll make a fabulous lentil curry if the merchandisers decide you're in the frozen horse meat and cheesy puffs demographic. Horrifying. Thank God for ethnic diversity or millions of people in that city would never see a fresh vegetable.
I agree with you absolutely about some of the things people pay good money for. Yesterday I goggled at ready-peeled garlic, in little plastic tubs, for about - I didn't actually check the price, but - £1.79 I think for five cloves, so £3.60 for a bulb, give or take, so about four or five times the sensible cost (assuming you forgot - again - to plant it in time, of course). Really? What, just so you don't have to take 30 seconds to peel it and another 30 seconds to wash your hands? Seriously??? And ready-spiced lamb chops. Because it's too hard to put your own spices and quite a lot less salt on your own lamb chops? Oh my. And don't start me on disposable floor wipes… And *electronic* air fresheners! - rub some lavender, for heaven's sake. Or open the bloody window...
As CM said I was not knocking living frugally. I was brought up during WW11 when there was no choice down to saving the elastic from a pair of worn out underwear. I still grow a garden,can food and make jam etc. Thrift stores, rummage and garage sales are an enjoyable outing for me. Why even my cat is recycled!! I also look forward to the arrival of my copy of the Mother Earth News every two months. I was looking at it from the perspective of a young family of four I am friendly with. the wife is an LPN and her husband is disabled - still trying to get qualified. They live on that $22k a year. Some months they just can't find the $100 for the electric bill or $600 to fill the propane tank. If I was running that family I could do things a lot differently but they were never taught the skills although they try hard. I personally have taught them a lot of things about home improvement etc. Now I am old and tired and often take the easy way out but the spirit is still willing. The younger generation would not be seen dead with darns in their socks but I still mend my good wool winter ones
They were living off of investments and savings plus Social Security. They lost a lot in the stock market in 2001 and 2008. Now they only have Social Security and it's not enough to meet their expenses. They have a lot of medical expenses and still paying off a home with very little equity.
OK, so what are they like…..are they in poor health, advanced elderly and probably will need skilled nursing care in the near future; or are they maybe 70 & 72 and can probably stay living on their own another decade or so.
About their medical, are they getting the best use of their Medicare? Like are they going to providers that take Medicare or are they getting care from outside that cost more? Do they have a MediGap type of policy and does it work for what they need…..many of these are really good but you have to go within the system to get it to be worthwhile. If they are seeing their old doc because they like him and he is not on their gap plan it is costing them.
Does their part D plan work for the medications they take? You can gather up all their Rx's and go to CVS and other pharmacies to see what they charge, it could be lots less. My mom loved the old pharmacy in the neighborhood, used it since my childhood but their prescriptions generally were more and charged extra for her wide mouth screw top bottles. I got her to switch to a grocery store pharmacy which saved a good amount of money.
What is the situation on the home, like what is the outstanding mortgage and what could the house sell for now? are they significantly under-water on the house, you need to figure out the % under if that is the case; what is the condition of the home is there significant deferred repairs,etc. Does the house "work" for them or would they be better living in IL or an apartment?
And the really hard part, have they been and are they possibly living beyond their means? can they live on a budget to be able to have just SS cover their basics? Or is their monthly cost just never going to be able to have SS work for them? None of this is easy but you need to have a hard look at the numbers.
Reverse mortgages are only for owner-occupied homes. Once you move out, the loan is immediately due in full. If you apply for Medicaid, they would expect to see a fair market rent coming in from the house. Even with a life estate, here in NY, the rent must flow to the life tenant as long as she lives.
CM, not grumpy, just brought up in a different time and way. We had one of those single cup coffee salesman at the office, telling me how the system also had tea. I'm thinking, they already come single serving (teabag). The cost was $14 for what I get for $3 full retail. But I'm taken aback at how hard it must be to eat healthy in urban neighborhoods where there are only corner stores with convenience foods because there is no supermarket. I read an article a while back about neighborhoods in Detroit that are "underserved", I think was the word.
VA benefits, takes a long time for them to process, but in about 18 months you will have an answer (speaking from experience). Better apply immediately. Go to your county Social Services immediately, too. They will coordinate benefits with VA. For VA to pay, they must have no more than $80,000 in assets (unless I'm out of date, someone else can update please). To qualify for Medicaid, it's even less assets than VA. They may have to sell the house, and move into subsidized housing. The biggest hurdle I see, is they probably have been living far beyond their means, for a LONG time. It might be a radical adjustment for them. I would suggest renting out part of their house to a student or boarder, but, that would mean income....and they wouldnt' qualify for Medicaid. Tough situation. They ought to teach every high school student in the nation about these issues! Be prepared for older age, by saving NOW, and don't live beyond your means.
If their medical bills are a lot, I get the feeling they are not taking full advantage of their Medicare benefits. Are they on a good Advantage program, such as Blue Advantage or with Humana? My mother has Blue Advantage and we have little out-of-pocket expense, though she has several medical problems. The Advantage programs I mentioned also cover prescriptions, and will pay most of the cost of generics.
Many of the people who drew their money out of the market in 2008 were hurt badly. The market recovered, but people who took money out did not benefit from the recovery. I feel for those people who lost so much.
I agree with you absolutely about some of the things people pay good money for. Yesterday I goggled at ready-peeled garlic, in little plastic tubs, for about - I didn't actually check the price, but - £1.79 I think for five cloves, so £3.60 for a bulb, give or take, so about four or five times the sensible cost (assuming you forgot - again - to plant it in time, of course). Really? What, just so you don't have to take 30 seconds to peel it and another 30 seconds to wash your hands? Seriously??? And ready-spiced lamb chops. Because it's too hard to put your own spices and quite a lot less salt on your own lamb chops? Oh my. And don't start me on disposable floor wipes… And *electronic* air fresheners! - rub some lavender, for heaven's sake. Or open the bloody window...
[Getting a bit grumpy in my old age!]
I still grow a garden,can food and make jam etc. Thrift stores, rummage and garage sales are an enjoyable outing for me. Why even my cat is recycled!! I also look forward to the arrival of my copy of the Mother Earth News every two months. I was looking at it from the perspective of a young family of four I am friendly with. the wife is an LPN and her husband is disabled - still trying to get qualified. They live on that $22k a year. Some months they just can't find the $100 for the electric bill or $600 to fill the propane tank. If I was running that family I could do things a lot differently but they were never taught the skills although they try hard. I personally have taught them a lot of things about home improvement etc.
Now I am old and tired and often take the easy way out but the spirit is still willing.
The younger generation would not be seen dead with darns in their socks but I still mend my good wool winter ones
About their medical, are they getting the best use of their Medicare? Like are they going to providers that take Medicare or are they getting care from outside that cost more? Do they have a MediGap type of policy and does it work for what they need…..many of these are really good but you have to go within the system to get it to be worthwhile. If they are seeing their old doc because they like him and he is not on their gap plan it is costing them.
Does their part D plan work for the medications they take? You can gather up all their Rx's and go to CVS and other pharmacies to see what they charge, it could be lots less. My mom loved the old pharmacy in the neighborhood, used it since my childhood but their prescriptions generally were more and charged extra for her wide mouth screw top bottles. I got her to switch to a grocery store pharmacy which saved a good amount of money.
What is the situation on the home, like what is the outstanding mortgage and what could the house sell for now? are they significantly under-water on the house, you need to figure out the % under if that is the case; what is the condition of the home is there significant deferred repairs,etc. Does the house "work" for them or would they be better living in IL or an apartment?
And the really hard part, have they been and are they possibly living beyond their means? can they live on a budget to be able to have just SS cover their basics? Or is their monthly cost just never going to be able to have SS work for them?
None of this is easy but you need to have a hard look at the numbers.
What is the status of her home now? Is it standing empty?
Go to your county Social Services immediately, too. They will coordinate benefits with VA.
For VA to pay, they must have no more than $80,000 in assets (unless I'm out of date, someone else can update please).
To qualify for Medicaid, it's even less assets than VA. They may have to sell the house, and move into subsidized housing.
The biggest hurdle I see, is they probably have been living far beyond their means, for a LONG time. It might be a radical adjustment for them.
I would suggest renting out part of their house to a student or boarder, but, that would mean income....and they wouldnt' qualify for Medicaid.
Tough situation. They ought to teach every high school student in the nation about these issues! Be prepared for older age, by saving NOW, and don't live beyond your means.
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