ACTIVE ADULTS & SENIOR LIVING
To begin with, forget about that rocking chair – how does a morning spent working out in the gym or pedaling along the hike and bike trail sound? As for the front porch, seniors in Arizona find that they have a wide variety of housing options that can accom-modate their budget, while enjoying their lifestyle in a community that encourages the development and pursuit of their personal interests, goals and activities. While aging is inevitable, medical advances, as well as healthy lifestyle choices, are responsible for increasing the number of years a person may live, as well as improving that person’s lifestyle. The result is that the demographics of seniors in Arizona have undergone some significant changes: the term “senior” may describe an active person in her late 50’s, or someone in her early 80’s. Baby Boomers now entering the senior arena are faced with the responsibility of preparing not only for their own retirement, but with making retirement and housing plans for their elderly parents as well. Fortunately, both Phoenix and Tucson offer a wide array of options to accommodate the different requirements and lifestyles of its seniors. From upscale retirement commu-nities offering residents a choice of social, cultural, travel and sporting opportuni- ties to active seniors, to full-care facilities specializing in caring for the elderly with mental and physical disabilities, there is a senior citizen living solution to fit every need. TAKING STOCK OF YOURSELF When making retirement housing plans, there’s no denying that the number and diversity of choices available might make the process feel overwhelming. Begin by taking a personal inventory that takes into account personal living expenses, health, interests and expectations.
day-to-day living expenses such as dry cleaning and energy bills to current or anticipated medical expenses. The point is to be realistic about everyday expenses now, so there are no rude surprises later. Lifestyle Inventory: Active golf enthusiasts, for example, might want close proximity to a local golf course. Those who want to use this time for community involvement might want to live close by schools, churches or community centers, while others who want to continue developing and pursuing an active lifestyle might want easy access to hike and bike trails, fitness centers, etc. Again, being realistic on the front end helps determine smart choices that can only benefit later. SHOULD YOU STAY OR SHOULD YOU GO? Staying Put: Packing up and selling a loved home with so many memories is a difficult decision for many longtime Arizona resi-dents. One viable option open to senior homeowners is the reverse mortgage, which allows homeowners to turn the value of their home into cash without having to move or repay the loan each month. Guaranteed by the U.S. Department of Housing and Urban Development, HUD offers seniors a federally insured private loan as a means to provide financial security and supplement social security, meet unexpected medical expenses, make home improvements, and more. The money from a reverse loan may be paid to the borrower in a variety of ways, from a lump sum to a regular monthly cash advance, as a credit line account or in any combination of the above. Typically, borrowers do not have to pay anything back until they permanently move out of the home, sell, or die. Eligibility for most reverse mortgages requires that the home should be owned outright by the applicant, and that the applicant is 62 years of age or older.
require that borrowers have some sort of income so they can determine a borrower’s ability to pay back the loan, many retired seniors simply cannot qualify for a traditional home equity loan. But a reverse mortgage does not require monthly payments, and therefore no minimum amount of income is required for the loan application. Most reverse mort-gages require no repayment as long as the owner, or any co-owner, lives in the home. The best way to determine if a reverse mort-gage is the best fit for one’s retirement plan is to honestly assess the following:
• How much would the home sell for on today’s market?
• What would the cost be to buy and maintain, or rent, a new home?
• Would there be any money left over from the purchase of a new home that could be safely invested? • What are the options for downsizing into a less expensive home, renting an apart-ment, or moving into an assisted living or alternative senior housing situation? Jumping into borrowing money for a reverse mortgage is not advised until looking into all of these senior living options. By being honest about current needs and housing trends, and exploring all the options, seniors can rest easy that they have selected the best housing choice that custom fits their partic-ular budget and lifestyle needs. Pack It Up: Being realistic about one’s life, finances and longevity is a must when deciding to move to another community. Retirees have to think about their health and future, and expand their thinking beyond the average life expectation. They need to consider the need to be close to hospitals and doctors
Budget Inventory: Make a list of monthly expenses, from rental or housing fees to
A reverse mortgage offers retirees a distinct advantage. Since most lenders
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