Bond Investing – Allocation Guidelines

For most investors, bonds are just one thing – ballast. Bonds can work well for income seekers, and, in the hands of an adept speculator, they can beat the stock market for long stretches. But this is not how most investors use them. Most buy and hold, rather than speculating.

There is a better way to get extra value from your bond investment. Bonds help in keeping a stock-focused portfolio sturdy — steadily, predictably heading in the right direction for long-term returns.

It’s All About The Ratio

The first fixed-income question for most investors is, what’s the right ratio of bonds to stocks?
Michael Holland, manager of the Holland Balanced Fund, strongly advocates a 60/40 ratio of stocks to bond for most investors. With this ratio, investors can generally gain 80% of the stock market’s long-run return but with only a moderate level of volatility along the way
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Interested in even more security than that? The minimum-risk allocation is probably 80% fixed-income, 20% stock, according to Alan Gayle, senior investment strategist for Trusco Capital Management. In his view, a 100% bond allocation is never a good idea, even for the most risk-averse investor, because bonds can suffer lengthy bear markets in their own right.

Whatever your asset-allocation goal, you should always be splitting up the bond portion of your portfolio between the different classes of bonds.

• Start with at least 25% invested in bonds with as little default risk as possible – this means Treasuries, inflation-indexed Treasuries or municipal bonds.

• Add an allocation of up to 65% for bond funds with “economic exposure,” such as those focused on highly rated corporate bonds. These usually outperform Treasuries when the economy heats up. A fund is a better choice than direct investment for most investors because it offers a level of diversification few investors achieve with individual corporate bonds.

• Don’t neglect junk bonds. They deserve at least 10% of your bond investment. High yield bonds correlate more closely with equities than with fixed income investments, and their higher yields can compensate when Treasury yields are low. Don’t buy direct – funds are the only safe way to play the high-yield market.
Lowest Risk Bond Type – Treasury Bonds

The safest choice of bond investment for your portfolio is Treasuries (and inflation-protected Treasuries). Only rarely do Treasuries offer the fixed-income world excitingly large returns. But their issuer — the US government — won’t be going bankrupt any time soon. In troubled times, that is an important consideration.

Bond Investing – Why Buy Into A Fund?

The primary advantage of these funds is that they simplify your investment. Writing a check to a fund company takes less effort than buying individual bonds and can, for some investors, be worth a small annual fee.

Many financial planners criticise government-bond funds, though, because few bond funds feature a single maturity date. Most managers buy and sell to take profits or pounce on perceived bargains. This means that there is no way to guarantee the return of your capital in full on any precise date – one of the key reasons for buying bonds in the first place.

The only way to totally guarantee stability of principal is to buy individual bonds at issue and hold them to maturity.

Article by Mark Bennett

Life Insurance and Retirement

It may not be something you want to think about, and rightly so, but investing in a life insurance plan is a good idea for a multitude of reasons. There are many variables involved with different life insurance plans, and each plan has different methods of determining its fees.

If you are considering a life insurance policy, you’ll want to do as much research as possible into different agencies to figure out which plan best suits your needs.

First, let’s talk a little about why you should consider investing in a life insurance policy.

The purpose of having a life insurance plan is to protect your family from financial disaster if you die. If you suddenly die with no insurance, the burden of paying off a mortgage, the taxes owed to the government from your inheritance, or a grandchild’s college tuition could placed be on your family’s shoulders.

There may be no need for insurance if you have no dependents and are single. If you are married with no dependents, you will still want to consider a life insurance policy so the burden is not left on your spouse if you die.

Here are some common questions about life insurance:

How expensive is life insurance?

If you are young (baby boomer retirees still count) and are in good health (don’t smoke, no health conditions, etc.), life insurance may be more affordable than you think. But if you are a little older and have bad habits or medical conditions, you may find that a life insurance policy will be very expensive.

What kind of plan will I need?

This will depend mostly on your age, your lifestyle, and how much taxable money you will leave to those in your will. Think about the life expectancy of yourself and your spouse, along with the general state of your health. Also take into consideration whether or not your spouse will be able to provide for him or herself after you’re gone.

Do my spouse and I need separate plans?

Yes. You never know what might happen to whom first. The cost of each plan will depend greatly on the age and health of each individual. Also consider who would be left with what burden if someone dies, and if either of you would still be receiving an income.

You should be very careful about the company and plan you choose. Do your homework, as each company’s policies can be very different. Choosing the right plan for you is one of the most important steps to retirement, as you will make sure your family is safe and secure if anything should happen to you.

Protecting Against Senior Investment Fraud

When Ben and Ida received an invitation for a complimentary gourmet meal if they attended an investment seminar, they learned the hard way that there is no such thing as a free lunch. Promised a guaranteed income on an investment, the senior couple opened an account with the sponsoring firm, and got bilked out of thousands of dollars. They are not alone.

A survey by the North American Securities Administrators Association (NASAA) shows senior investment fraud accounts for nearly 50% of all complaints received by state securities regulators. That number is up from the 2005 survey, when 28% percent of fraud reports involved the elderly. The financial industry is littered with slick schemes that result in broken dreams for seniors who take the bait. Stories of seniors losing their life savings are far too abundant. Seniors are being targeted through the internet, mail, phone, in-home visits, and free “financial seminars” specifically tailored to large groups of seniors, says Bob Webster, Director of Communications for NASSA. There are many reasons seniors fall victim to fraud, including:

• Being too trusting, and too good mannered to be rude
• Wanting a better rate of return on their money
• Believing the salesperson is nice, friendly and caring
• Being impressed with fancy credential and titles

These titles can serve as an easy way for an unscrupulous sales agent or adviser to gain a senior’s trust, which is the first step in a successful fraud,” says Webster. “It is exceedingly difficult for prospective investors – particularly senior citizens – to determine whether a particular designation represents a meaningful credential by the agent or simply an empty marketing device.” Financial predators use fear tactics to instill fear in seniors of running out of money and becoming a burden to their families. They inspire distrust in seniors of family members concerning their finances to keep seniors from disclosing the fraud. And they prey upon the loneliness and isolation, and availability of some retired or widowed seniors. How do you know if a potential investment is legit? Webster says to contact your state’s securities regulator to see if the salesperson is licensed in your state to sell the security and if the security is licensed for sale in your state. “Usually investments that guarantee or promise high returns for little or no risk are signs of trouble ahead,” he says. Investment scams can take many shapes. If it didn’t sound good, seniors wouldn’t give it a second thought! Whatever the enticing investment, scammers use specific tactics to get seniors hooked. Be cautious of these phrases:

•”Your profit is guaranteed.”
•”It’s an amazingly high rate of return.”
•”There’s no risk.”
•”You can get in on the ground floor.”
•”You would be a fool to pass this by.”
•”This offer is only available today.”

Webster adds, “Remember, if it sounds too good to be true, it usually is.

Precautions to Take

Most investments are some form of securities that must be registered with the state securities regulator or with the Securities and Exchange Commission (SEC). Check to see if the investment opportunity is registered by contacting your state securities regulator. If the potential investment is not properly registered, do not invest.

Check the person. Is the person properly licensed with the state or with the SEC to sell this product? If not, beware. Is this person a broker, licensed to buy and sell stocks, bonds and other securities, or with an investment adviser, someone who is paid to provide advice about investing in securities but is not licensed to sell them?

Check the history. Does the person or their firms have had any complaints filed against them with regulators? Those who do business with an unlicensed securities broker or a firm that later goes out of business, may have no way to recover money. One way caregivers can help protect their elderly loved ones from investment fraud is to strive for an open, two-way communication when it comes to finances. Make sure the loved one is comfortable talking about money honestly and openly without fear of reprisal. If possible, have them turn to you, or a trusted financial advisor or lawyer before making any investment. If an investor is real, he will have no problem speaking to his client’s family member before taking the senior’s money.

America’s Retirees Working Hard to Protect Health Care Benefits

(ARA) – Retirees and baby boomers throughout the nation are wondering with great trepidation, what would happen to them if their health care coverage were simply taken away?

Many fear that the current economic crisis in America will speed up that process. It has already occurred with retirees of some of America’s largest corporations, and municipalities are threatening to follow suit. According to Paul Miller, executive director of the national retiree advocacy group, ProtectSeniors.Org, the situation is as dire as the bailout was for the auto industry, Wall Street and America’s major banks.

“There are currently an estimated 18.5 million American retirees and baby boomers in the United States with health benefits being significantly threatened,” Miller says. “If cancelled by the corporations they once worked for, most would be dumped into the federal and state healthcare systems. In effect, this means their former employers would be getting an additional back-door federal bailout at the expense of the taxpayer.”

The health care coverage Miller is referring to is earned retiree benefits that tens of millions of Americans earned and paid for during their working years. He says that for whatever reason, many corporations never actually set that money aside and are using the current financial turmoil to threaten the cancellation and further reduction of these benefits.

Much of his organization’s hope is placed on a bipartisan legislative proposal  titled the Emergency Retiree Health Benefits Protection Act in the 110th Congress — which gained the support of 88 bipartisan co-sponsors. The bill would prohibit employers from making post-retirement cancellations or reductions of health benefits that retirees had earned.

“Companies would be made to live up to the financial commitments made to their employees and retirees, and most importantly, would do so without placing mandates on the employers as to what health plans they provide or monetary ceilings on the amount of health benefits”, Miller says.

Behind its efforts, ProtectSeniors.org has harnessed the support of retirees from 285 companies, 36 unions, 76 municipal, state and federal retiree groups, in addition to 14 retiree associations.

“Lately, economists, talk show hosts, journalists and even politicians have been blaming America’s retirees and union workers for the economic downturn, calling our earned retirement health coverage legacy costs and burdensome,” says C. William Jones, a retiree from Verizon Communications and president of the 100,000-member Association of BellTel Retirees. “I, and tens of millions of retirees like me, worked decades to earn those benefits, taking less pay and forgoing days off to fund them. For companies to now imply that retirees are a liability to them and America is morally offensive and absolutely inaccurate.”

Advocates of the legislation argue that over many years, companies used the promise of post-employment health care coverage to induce employees to stay with that employer or, in some cases, to take early retirement. Companies did not agree to pay retiree benefits out of the goodness of their hearts or social well-being; there were significant financial benefits and tax breaks for them. They further explain that employers benefited financially by not having to pay Social Security and payroll taxes on these benefits.

“Funding these benefits could be deferred by companies in years when earnings were low, unlike payroll that must be paid on time,” Jones says. “Since pensions are based on a percentage of wages, companies also saved on long-term pension costs.”

University Of Alabama School Of Law Professor Dr. Norman Stein, an expert on the nation’s Employee Retirement Income Security Act (ERISA) pension law testified in favor of the proposal at a congressional hearing in the fall, saying Congress should pass legislation “that would make it difficult or perhaps impossible for an employer to terminate retiree health benefits after an employee has retired.” The long time advisor to AARP and the Pension Rights Center argued, “Congress could try to level the playing field for employees with clear, reasonable and consistent rules.”

Just last year the U.S. Supreme Court and ‘Equal Employment Opportunity Commission ruled that it is legal for companies to reduce or eliminate earned health benefits for retirees ages 65 and over, due to a loophole in the ERISA pension laws.

Acting to close that loophole with legislation to protect America’s retirees, Rep. John Tierney (D-Mass.) says, “Unlike pension plans, ERISA does not impose mandatory ‘vesting’ requirements with respect to health benefits. Consequently, many courts have upheld that there is no legal protection for employees. (The Emergency Retiree Health Benefits Protection Act) remedies this and ensures that the reasonable health benefit expectations of retirees from ERISA-sponsored regulated group health plans are fulfilled.”

“America’s retirees are not here asking for a handout or a bailout,” Miller says. “We merely want companies to live up to the promises they made. Give us the health benefits we earned and paid for over decades of loyal service.”

Article courtesy of ARA contet

Healthcare War Hits America’s Retirees Hard

(ARA) – Twenty million American retirees are among the largest group of casualties in the war being waged by their former corporate employers against workers’ and retirees’ earned heath care benefits.

This tug of war over the future of retiree health benefits is by no means a mere skirmish, but one affecting as much as 40 percent of Americans ages 60 and over, and tens-of-billions of dollars in health costs each year.

Major American corporations have taken the stance that they can no longer afford to stay competitive and sell their products and services in a global economy while paying benefits to retirees, even if these were contractual commitments made to retirees in their working years.

Airlines say they can not pay jet fuel costs and retirees’ health benefits and survive, and American auto manufacturers say that hundreds, if not thousands of dollars of the cost of each domestically made vehicle goes to paying worker and retiree health benefits.

Turning To the Courts:

Throughout the 1960’s and 70’s, GM stated in writing to workers that they would pay for certain medical benefits “for your lifetime.” In the late 1980’s, GM made major changes to their medical plans, requiring contributions and higher deductibles for 84,000 retirees.

For 10 years, the battle was fought in the courts. The lower courts found in favor of the retirees. GM appealed. The federal district courts found in favor of GM. The case was appealed to the U.S. Supreme Court who dealt the retirees a staggering loss.

Auto makers had a clause in their health care agreement with the workers: “we reserve the right to amend, modify, suspend or terminate …”

Currently a case by retirees from Caterpillar Inc. is winding its way through the U.S. District Court in Nashville, Tenn., charging that Caterpillar’s labor contracts and benefit plans provided retiree’s health care coverage “continued for his or her lifetime at no cost.”

According to Elizabeth Alexander, a lawyer for the retirees, workers were “assured free lifetime health care coverage.”

In October 2004, Caterpillar began charging retirees’ monthly premium costs ranging from $134 to $280 per month for health benefits. The lawsuit seeks to end these charges and restore money already charged. Retirees Best Chance — Capitol Hill:

The lead retiree advocacy group turning up the heat Washington, D.C, is ProtectSeniors.Org, seeking an amendment to the ERISA pension laws to make it illegal for an employer to either reduce or cancel earned health benefits after an employee has retired. The Emergency Retiree Health Benefits Protection Act (HR 1322), is currently cosponsored by 67 members of Congress. HR1322 would also require corporations who have already slashed these earned benefits to reinstate them to their former workers.

Paul Miller, executive director and chief lobbyist for ProtectSeniors.Org says, “In the modern era we see major corporations paying CEO’s tens-of-millions of dollars while slashing retiree health benefits. For companies claiming they can’t afford to compete or pay these benefits because of foreign competition, I say reexamine bloated executive compensation levels.”

Miller’s Capitol Hill-based group was formed in 2006 by retirees of the Bell System whose “free lifetime health benefits” were rapidly eroding, forcing retirees to downsize their retirement lifestyle, sell family homes or take on part time jobs.

In just one year since its founding, ProtectSeniors.Org has grown to include more than 45,000 retirees from over 35 industries and companies. Jim Casey, a Virginia retiree and a co-founder of the group says, “For far too long retirees have allowed themselves to be the victim, trusting our former employer would be there for us. Two out of every five retirees in America have now either completely lost or had their health benefits greatly diminished. On their behalf, we are sending up an SOS.”

“As America’s largest voting block, retirees and baby boomers no longer want lip service from Washington, we need action to make it illegal for companies to steal retirees’ earned benefits,” says Casey. “We need more retirees to join us in the fight for their own economic protection.”

Article courtesy of ARAcontent

Aging Baby Boomers Face Healthcare Shortage

(ARA) – Every day, almost 11,000 baby boomers turn 50. Born between 1946 and 1964, aging baby boomers are the fastest growing segment of the United States population. By 2030, the number of people ages 65 and older will nearly double to 71.5 million, or 20 percent of the population.

“Today, Medicare enrollees with multiple chronic illnesses account for 70 percent of health care expenditures,” says Dr. Kyle Allen, chief of the division of geriatric medicine and medical director of post-acute and senior services at Summa Health System in Akron, Ohio. “Caring for the elderly oftentimes becomes very complicated because the patients have an average of 13 doctors and fill 50 prescriptions each year.”

At the same time the population of people over 65 is increasing, the U.S. is also facing a geriatrician shortage. A geriatrician is a specially-trained doctor who helps to prevent and manage older adults’ multiple health concerns. Typically, these doctors are board certified in internal medicine or family practice with extra training in a geriatric medicine fellowship.

In 2005, there was only one geriatrician for every 5,000 Americans 65 and older. The American Geriatrics Society (AGS) estimates that at least 36,000 geriatricians will be needed in the next 20 years. In planning for this shortage, Summa Health System is offering two fellowship programs in geriatric medicine to help train doctors to become leaders in the field.

Since 2001, Summa Health System has partnered with the Cleveland Clinic to offer a joint Geriatric Medicine Fellowship Program, which trains doctors to become leaders in the field of geriatrics. The program consists of one year of clinical training with an optional second year of research. In addition to the Geriatric Medicine Fellowship, Summa also offers a Palliative Care Fellowship Program, which includes extensive training in both hospice and palliative medicine. The fellows work closely with Summa’s geriatricians, and this enables them to coordinate care and also understand the aging process and complexity of illnesses.

This type of training is necessary for doctors throughout the country. “With the growing aging population, we’re facing a vast need for young people to become geriatricians,” states Dr. Allen. “As they live longer, baby boomers are rapidly placing demands on the healthcare system.”

Summa Health System has created numerous programs aimed at helping the senior population and their families. Dr. Allen helped start the first Acute Care for Elders (ACE) unit in the country, which is specifically designed to help patients maintain function and maximize their independence during hospitalization. The ACE unit’s home-like atmosphere features carpeted patient rooms with artwork, curtains and lighting designed especially for older adults. Since the ACE unit opened in 1994, health systems from around the country have visited Summa to learn more about the ACE model of care. More than 40 units have been created as a result of these visits.

Other Summa programs, such as the Center for Senior Health, specialize in coordinating every aspect of an older adult’s care in order to preserve independence and help the patient and their family cope with the medical, emotional and social problems commonly associated with aging. Geriatricians, geriatric-certified advanced practice nurses and social workers who have special training, testing and certification in the care of older adults meet with each patient and their family to develop individualized care plans addressing every aspect of their well-being. This team- based model maximizes resources with the goal of providing collaborative care to cover all aspects of patients’ treatment.

“The overall goal of the geriatric programs at Summa Health System is to improve our patients’ health and independence,” says Dr. Allen. “We have found this to be cost effective and at the same time, we are able to meet the community’s needs and also address the challenges that will arise as our population gets older.”

Article courtesy of ARAcontent

Should You Move to a Retirement Community?

Many elderly retired people choose to move to a retirement community for various reasons. A large home may have been great when they were raising children and pets. Now that the children have left home to start their own families, there is far too much space to take care of. The garden may also be too big to maintain. It is probably difficult to secure a home properly if the retiree plans to travel extensively. A smaller retirement home or apartment in a retirement community may be the next best option. A retirement home will often have useful amenities and services for their residents. There may even be round the clock medical services. Some of the amenities may include swimming pools, dance halls, bowling alleys and activity centers. Many retirement homes may also have restaurants and cafeterias for their residents.

Finding Great Retirement Communities

With the information available on the Internet, it is not difficult to locate great retirement communities. You may be assisting your parents or elderly relatives to find a place to spend their golden years. They no longer find it comfortable living in their current homes and desire to move somewhere where the weather is warm and comfortable. You may be looking for information yourself. Either you plan to move into a retirement community soon or you may be researching for one you can invest in now for your future retirement. Investing in retirement communities ahead of time – a few decades ahead – can be a wise investment decision.

What Makes Great Retirement Communities?

Before you start researching for great retirement communities, you can ask yourself what features and facilities are important to you. Perhaps you do not know even what these are; since you have never considered or looked up these alternative forms of accommodation. Then trawling through the Internet is a great way to start. Enter the search term ‘retirement communities’ into the Google webpage. Visit the websites of a few retirement communities. While you do this, take note of the things that you consider important. Some of these key criteria may include location, climate over the year, size of the facility, number of residents, accommodation types, availability of medical staff round the clock, recreational facilities like swimming pools and tennis courts, facility organized social activities like games, dancing and short tours, cleaning and food preparation services.

Now that you know what you would consider essential to create a shortlist of potential retirement communities, your research becomes more focused. You may narrow your search by location. Next you would make a list of suitable retirement communities in that location by using kill criteria – eliminate those that you are absolutely not interested in. These may not have what you consider essential features and facilities. From your shortlist that may have had tens of optional retirement communities, you may have whittled it down to a list of less than 10.

Next you need to invest some time and effort to visit the retirement communities in your reduced shortlist. Call to make appointments. You may be lucky to find an agent in a popular location with many retirement communities to help you in this process. He or she may be able to offer you great local insight about the retirement communities that you are considering. If you plan to use an agent, confirm that he or she is independent of any of the retirement communities that you are considering.

Now the physical part of the research process starts. Visit the retirement communities in your list to see for yourself whether their Internet-based marketing matches or exceeds your expectations. Speak with their head of operations or sales. Note down details regarding availability, regular charges and charges for optional items that you may be interested in. Visit their cafes or restaurants to get an idea of the type and quality of food served. If you have the opportunity, speak with some of the residents. Make sure to take notes. The problem with trying to commit your impressions to memory is that you would either soon forget or confuse amongst the various retirement communities you have visited. Make the best of use of your time and effort during this physically demanding exercise.

When you are done with the physical due diligence of the retirement communities in your shortlist, it is time to reduce that list to a selection of the final three or less. You may be lucky! You may have found that one place which meets or exceeds your search criteria. The time may be ripe for you to commit to one of the retirement communities in your list. After this systematic and potentially grueling exercise, you can rest assured that you have done the right things to help you search for the ideal place to retire from all the potential retirement communities in a particular location.

Article by Cindy Heller

The Truth about Continuing Care Retirement Communities

Continuing Care Retirement Communities are communities used by senior citizens after retirement. They offer a choice of living situations and services. Based on changing needs, retirees can move back and forth between independent living, assisted living and nursing home care.

Often unexpected medical expenses can radically alter your vision of a self-sufficient retirement. Continuing Care Retirement Communities are an option that deals with this. Innovative living arrangements combine the security of long range planning with the ability to live independently.

Continuing Care Retirement Communities allow senior citizens to “age in place.” The health and housing accommodations are designed to take care of their needs as these needs change over time. People entering CCRC’s have typically signed a contract that takes care of residential and nursing needs all at one place.

Most people enter Continuing Care Retirement Communities while they are healthy and active. They do this in the knowledge that they will be able to receive nursing care if and when it becomes necessary. Such seniors have planned for retirement and have the means to support their plans.

CCRC’s are also known as Continuing Care Retirement Facilities, Life Care Communities and Life Care Facilities. Seniors living in such communities live in a home within the Continuing Care Retirement Communities complex.

CCRC’s are often sponsored by non-profit organizations. These are sometimes affiliated to religious orders, fraternal organizations and ethnic groups.

Continuing Care Retirement Communities are different from assisted living. In CCRC’s the individual contracts for a lifetime of care regardless of what his future needs may be. In assisted living the individual moves in the facility when necessary and begins to pay at that point. The care provided may be the same.

The advantages of a CCRC include that there is no moving required. If the person becomes well he can resume independent living. Virtually all seniors are good candidates for Continuing Care Retirement Facilities.

These include those seniors who are healthy, require assistance and those who require skilled nursing care. There are three types of housing arrangements provided in Continuing Care Retirement Communities. These include independent living units for healthy, active seniors. There are also assisted living arrangements for people who need assistance in daily activities but who also need independence. The third type of accommodation is nursing home facilities for those who need skilled nursing care.

Some CCRC’s cater to seniors with special needs like Alzheimer’s Disease. It is a good idea to do as much research as possible on a Continuing Care Retirement Community before joining one. Check if the CCRC is accredited by the CARF (Commission on Accreditation of Rehabilitation Facilities) Check if the community is appropriate to your lifestyle and your situation. Examine the community’s mission. See whether you can spend two days in the community to know what it is like living there. During this time see whether the following are to your liking  food, accommodation, recreational and cultural activities, fitness facilities, staff, healthcare services and means to handle medical emergencies. Choose your CCRC wisely. After all it may be the reward for a lifetime of hard work.

Article by Lee Dobbins

Choosing the Right Retirement Community

Thinking about which retirement community is best for you can be both exhilarating and somewhat stressful. You get to dream and think about what the next chapter in life holds for you. On the other hand, choosing the right retirement community can be a bit daunting, as there is so much to think about and so many areas to choose from.

There are many different factors to consider, and it can be difficult to organize all of those thoughts. Here are a few things to consider when looking for the right retirement community for you:

Location is key

This should be your first step. You can start broad and finally narrow your choices down from state, to city, and finally to a community in the city you choose. Many retirees will want to stay close to friends and family. If you do choose to live farther away, make sure you are close to an airport so you can easily jump on a plane and see your loved ones
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Understand exactly what you want

There are many different types of communities that cater to the needs of all kinds of people. Some only allow people over 60 in their doors, while others are open to younger residents.

The cost of each community can also vary greatly. What s the importance of your living environment? Do you want to live in a house, apartment, or condo? Some communities offer each type of home, and some only have houses. Take the time to make sure the community you’re looking at has a housing situation you desire and can afford.

Be sure to consider your hobbies as well. Some communities are centered around golf, and only golf. While this is a dream for many retirees, it s not ideal for everyone. Do you like to fish or hike outdoors? There are some wonderful communities where the great outdoors is virtually your backyard.

Plan on a visit

Once you ve narrowed down your prospects, contact the community you re interested in and ask for an information packet. They will most likely shower you with all the information you need.

Then, once you ve narrowed your search even further, be sure to give the place a visit. Many communities have frequent tours of their facilities and offer great overnight rates to help you get a feel for the place. Remember, they are the ones who want your business, so they will answer any questions you may have about the community.

Assisted Living – the Good Bad and the Ugly

What is Assisted Living?

The typical Assisted Living model is based on apartment style living with care services built in. This model encourages independence and autonomy while providing supervision and daily assistance with care needs. Meals are typically served in a main dining area with the intent of a social gathering while enjoying meals selected by the residents. Activities will be offered, including outings, scenic bus rides, and trips to the grocery store, bank, and doctors visits on designated days of the week.

What type of care is provided in Assisted Living?

Assisted Living provides custodial care, not medical care.

1. Bathing, Dressing, Toileting, Grooming, Mobility, Medication Management
2. Cooking, Housekeeping, Transportation, Laundry

What can I expect to pay for Assisted Living?

Most Assisted Living facilities structure their costs on an “ala carte” system. You will be quoted a “base cost” or “room and board cost” ranging from $1500-$3000 per month, depending on geography, size of apartment, and amenities offered. Expect to see additional costs added on right away. Based on an assessment of your care needs, the price will increase accordingly. This price can vary from month-to-month, especially if care needs drastically improve or decline over time.

What are the advantages to Assisted Living?

1. Less expensive than nursing home care
2. Private apartments to optimize privacy, autonomy, and independence
3. Three meals a day served in a social dining atmosphere
4. Security and call bell systems
5. Designed with accessibility in mind (roll-in showers, etc)
6. Exercise programs
7. Care Services available- to be used as little or as much as you require
8. Activity programs designed to keep residents active, social, and healthy
9. Most have a beauty parlor on site

What are the limitations of Assisted Living?

1. Despite staff presence and encouragement, some residents can become isolated
2. Most do not allow residents to cook, for safety reasons
3. Assisted Living can not accommodate residents who are wandering or exit seeking
4. Minimal staffing requirements in most states. On average, expect to see 1 caregiver for every 30 residents during peak hours, and much less at night
5. While facilities tout their abilities to care for residents through the end of life, many will ask families to hire private caregivers or transfer to a higher level of care if the residents needs are beyond the scope of their staffing levels

What do I look for in an Assisted Living community?

1. Ask to see the latest survey
2. Invite yourself to lunch (most will happily invite you first). Do you have menu options? Can family or friends join you or a meal? What is the cost for guest meals?
3. Do the other residents interact well with each other? Are the staff friendly and kind? Do they know the residents by name?
4. What is the caregiver-to-resident staffing ratio for each shift?
5. Is a nurse available? What hours is the nurse in the building?
6. Does the facility have a comfortable atmosphere? Is it clean? Are there any noticeable odors?
What safety features are available?
7. Is transportation available? Is there an additional cost?
8. How often is the care plan reviewed? Is the resident or responsible party involved in the review? (they should be)
9. What is the turn-over rate for staff? *Note* Most facilities have a high turn-over rate. It’s a huge problem. What is the facility doing to keep current staff and attract new quality caregivers?
10. If you have a pet, ask about any fees you will be expected to pay for your pet. Typically, an additional move-in fee and cleaning deposit will be incurred.
11. What cost of living increases can be expected? (we have noticed 3-6% yearly for most communities)
12. If the community can no longer meet your needs, how much notice will you receive and what assistance will be available to relocate to another level of care?
13. Trust your instincts!!!

Who pays for Assisted Living?

1. Private Pay (you)
2. Long Term Care Insurance- Check your policy for coverage, waiting periods, etc…
3. Medicaid- If you already qualify for Medicaid, or will qualify in the near future, make sure the facility you are considering has a Medicaid contract- many do not. You can check with the facility or your local Agency on Aging office for a list of contracted facilities in your area. If a facility does have a contract, chances are they are trying to balance Medicaid v.s. private pay in the building. Some will have a waiting list for Medicaid, so plan ahead. Do not wait until a crisis to start your search!!!
4. MEDICARE DOES NOT PAY FOR ASSISTED LIVING

If you are just starting your search for an Assisted Living Community, you may consider working with a geriatric care manager or placement and referral agency to guide you. These professionals will know the communities in your area and save you valuable time and energy.

Article by Amie Clark (www.theseniorlist.com) 

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