Consider ‘integrated housing’ says planner
Seniors may want to sell their homes and move in with relatives as a way to reduce overhead expenses.
Financial advisers should consider talking to their elderly clients about the advantages of selling their homes and moving in with relatives as a way to reduce overhead expenses.
This was among the points presented by veteran financial planner Karen Schaeffer on Sunday
Ms. Schaeffer, president of Schaeffer Financial Planning LLC in Rockville, Md., said clients often miss out on the financial opportunities of what she described as “integrated housing.”
“Of course, it’s easier to live with your mother-in-law if your house is built for it; that way everybody doesn’t have to watch Antique Road Show,” she said during a morning session entitled: Planning for Senior Clients: Housing, Health and Medicare Issues.
The conference, which started on Saturday and runs through Tuesday, has attracted more than 3,000 attendees from 26 different countries.
The attendance is up by 250 over last year’s gathering in Nashville.
Ms. Schaeffer, who also advised extreme caution when directing elderly clients through a reverse mortgage, said the key is communication and often involves talking with clients about issues that they might not have ever considered.
“Instead of a reverse mortgage maybe mom needs to sell her house and move,” she said. “You have to have those conversations with your clients.”
While she acknowledged that integrated housing might not work in all situations, Ms. Schaeffer said advisers should try to avoid making a reverse mortgage the immediate standby alternative.
“We all know that reverse mortgages will get better as baby boomers enter retirement,” she said. “But why take the money out of your home in the most expensive way possible?”
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