Thursday, December 20, 2018

Handling net worth during stock market volatility

I had a meeting Wednesday afternoon with a financial advisor, and I did get an idea of how investment planning for retirees based on expected lifespans works.

Planners are likely to expect to see active seniors in their 70s live 20 more years. They will tend to recommend “conservative growth” strategies vs. “conservative income”, that in my case can simulate a lifestyle earning about $80000. This sounds like “Economic Invincibility” indeed.

Because I have a mechanism to move personal annuity income back to the trust to pay it “rent” (though charitable donations) for my condo, there can be a gradual loss of net worth unless the annuity gains value to make up for it.  When the stock market (and derived money markets) rises, this will hide the “rent” and make it appear that net worth is staying steady.  But recently the volatility has wiped out most of the gains prior to this year, making the spending of the past years more conspicuous. .

Thursday, December 13, 2018

Baby boomers buy high-end CCRC condos with large entry fees not considered as part of the "real estate"

Scott James has a “Square Feet” article on p B6 of the New York Times on Wednesday, December 12, 2018, “Retirement Enclaves with 5-Star Amenities”, and the tag-line “Aging baby boomers create a surge in luxury communities that offer a range of heath care”.  Online the title is “Boomers create a surge in luxury care communities”. 

The article starts out by describing a property in the Napa Valley area (maybe exposed to wildfires?) before going to north Dallas.  What struck me as odd was that these were condominiums with entry fees on top (not part of the valuation of the apartment) which provided a deposit on future assisted living needs.

And some of them, even in Dallas, were outrageously expensive.  But the apartments tended to have large square-footages, compared to typical assisted living apartments for rental, as owned by chains. 
In the DC area (northern Virginia) a similar property in Goodwin House (two properties) which I have covered here before as CCRC’s.  But I believe those are rentals. 
A few of these properties, especially in New York and in California, have an outreach to LGBTQ persons. 
Picture: Near Lemon Ave and US 175 in Dallas. 

Tuesday, December 04, 2018

States are ranked as to their ability to protect senior citizens from caregiver or corporate abuse

The Wallet Hub has an email of the ten states with the best, and ten with the worst, eldercare protections, link back to this url that ranks all the states .   There is also a composite video link in the middle of the page. 

Virginia is in the middle of the pack on Prevalence and protection and low on resources.  Washington DC was second on resources. 

Most states have cities and counties operate “adult protective services” units.  It’s possible for adult children looking after elderly parents to get into trouble with these local regulatory enforcements.  For example, sometimes there are rules to the effect that people on certain memory medications should never be left home alone.

The state with the best overall score is Massachusetts, and the worst is South Carolina.