What Is Aging In Place
Aging in Place is the ability to continue living in your own home, safely and independently, as you grow older and your needs and abilities change.
According to the National Aging in Place Council , more than 90 percent of older adults would prefer to age in place in their own homes rather than move to senior housing.
Honestly, that makes a lot of sense!
Its like an aging in place report by AARP says so well:
People spend years making connections and commitments to homes, friendships, community organizations, and local social ties within their community. Communities become a source of support and engagement for residents, particularly older adults who have an even stronger desire to age in place.
But is aging in place actually a good idea? Or, is it just sentimentality that shouldnt be tolerated?
Lets find out.
Buying A House After You Retire
On the other hand, it may make sense for you to put off buying your retirement home until youre actually retired. Buying an additional home too early could actually postpone your retirement date because it will put additional financial stress on you that could prevent you from saving as much as youd like.
You also have to consider that your needs will likely be different after you retire vs. before. You may not be thinking about a need for fewer stairs, proximity to health care, etc. while youre still young and working, but it may be a big factor for you later on. If youre not sure about the location you want to be in yet, either its probably a good idea to wait until your plans for the future are more set-in stone before buying a house youll be spending a large portion of your time in.
Dss Will Schedule A Component Ii Meeting At Their Office
This is step two in a three-part component process that must be completed by all new licensees. Once your application has been reviewed, you will be contacted by the local DSS office for a one-on-one interview with the reviewing analyst.
Component I was the orientation course you took in #4 on this list, and Component III involves category specific training and discussion in areas not often understood by new licensees intended to promote successful facility operation. Basically, this is the facility tour where the Licensing Program Analyst determines if the facility is safe, stocked, and ready to receive residents. Both components II and III will be done once DSS accepts your license application, but prior to actual licensure. These are all essential aspects of the license application process.
Also Check: How To Find A Retirement Home
Questions To Ask Yourself Before Retiring
As you plan, consider these important questions:
- At what age do you plan to retire?
- Can you participate in an employer’s retirement savings plan? This includes 401 plans and traditional pension plans.
- If you have a spouse or partner, will they retire when you do?
- Where do you plan to live when you retire? Will you downsize, rent, or own your home?
- Do you expect to work part-time?
- Will you have the same medical insurance you had while working? Will your insurance coverage change?
- Do you want to travel or pursue a costly, new hobby?
Size And Location Of The Community
There is no set size for an independent living community, so its up to you if you prefer a smaller size community or a busier place with more people and opportunities for socialization. Are you comfortable with more compact apartment-style living, or will you only consider a detached house?
Location is another consideration. Some popular retirement communities in the U.S., for example, are located in warmer states such as Arizona, California, and Florida. There are downsides to moving a long distance, away from family and friends, though. Youll need to develop a new support network and find new medical care.
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Is This Business Right For You
This business is right for an individual or group of individuals who know how to have a good time. Just because someone is older than 60, it does not mean they want to sit around all day. The owners of this business need to be capable of being friends with many individuals from all walks of life. After all, these retirees have quite a few stories to tell about their heydays.
This business will not be right for an individual who prefers to work alone. The nature of this business requires you to interact with others and find ways to cultivate community. Additionally, there are many logistics that must be promptly handled each day. Facilities must be maintained, employees must be held accountable for arriving on time, and new residents must be given tours when requested.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
Retirement Communities/independent Living Facilities
Retirement communities and independent living facilities are housing exclusively for adults . The person is generally healthy and any medical or personal care can be provided by visiting nurses or a home health aide. Staff at the retirement community does not take on the general responsibility for the safety and well-being of the adult.
There are all kinds of planned retirement communities from large scale, single family home developments to smaller-scale, senior houses or apartments.
Washington State does not license retirement communities. To find local retirement communities in the area, contact your local Senior Information and Assistance office.
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Think About How Much Youll Need In Retirement
When you think about saving for retirement, start with how much you currently spend each month. If you spend 10% of your money on clothes, theres a good chance youll want to spend about that much on clothes in the future. Also think about your monthly bills. Many people underestimate how much money they will need to spend in retirement. Some financial experts, like Nicole Lapin tell people that they should expect their retirement expenses to be at least 60% of what they are currently. And thats assuming you live very frugally. Most people will probably want to spend 70% 90% of what they currently spend. Look at your spending habits to get an idea whats important to you.
Many people have specific things they want to spend money on in retirement. Maybe you want to travel, learn a language or volunteer more. Think about the lifestyle you might want to live. You should also think about where you might want to live. Many retirees move to warm, sunny locales.
Consider all these current and potential expenses. Once you have an idea how much youll spend each month in retirement, you can calculate how much youll need in savings.
Figure Out How Much Money You Need To Retire
The amount of money you need to retire is a function of your current income and expenses, and how you think those expenses will change in retirement.
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The typical advice is to replace 70% to 90% of your annual pre-retirement income through savings and Social Security.
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For example, a retiree who earns an average of $63,000 per year before retirement should expect to need $44,000 to $57,000 per year in retirement.
» Go deeper: Our free retirement calculator will help you figure out how much you need to save
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Choose The Best Retirement Plan For You
A cornerstone of retirement planning is determining not only how much to save, but also where to save it.
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If you have a 401 or other employer retirement plan with matching dollars, consider starting there.
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If you dont have a workplace retirement plan, you can open your own retirement account.
There is no single best retirement plan, but there is likely a best retirement plan or combination of retirement accounts for you. In general, the best plans provide tax advantages, and, if available, an additional savings incentive, such as matching contributions. That’s why, in many cases, a 401 with an employer match is the best place to start for many people.
Some workers are missing out on that free money. According to a 2021 T. Rowe Price Retirement Savings and Spending Study,
» Go deeper: Read more about how to choose a retirement account
Get The Legal Documents You Need To Operate
There is a lot of red tape when opening a nursing home. Some basic legal documents and information that you must have include:
- Federal tax ID number
- Perform a business financial analysis
- Make financial projections
Having noted down your findings of all the above, the document you now have is your business plan.
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Thinking Of Starting A Nursing Home Business
There are plenty of good reasons to open a nursing home, not least of which is that running your own business is a liberating and rewarding enterprise if itâs successful. Nursing homes provide a valuable service to those in need, and this is also a source of satisfaction for those who run them.
Theyâre also profitable. The cost of living in long-term care facilities is increasing at a rate that outpaces inflation, suggesting that itâsâ becoming more profitable all the time. However, if youâre considering running the home as a nonprofit, you may be interested to know that nonprofit facilities have better resident outcomes and better rates of staff satisfaction.
Whatever your business model will be, youâll need to identify your motives first, before you know where to look into how to start a nursing home. Once you have these in mind, there is a series of steps that are relatively consistent for all business startups, with a few specifics that relate to nursing homes in particular.
Before you think about how to open a nursing home, itâs important to consider the responsibilities involved too. Working in the care industry may well be rewarding and possibly very lucrative, but itâs also a heavily-regulated industry that involves a lot of work and licensing. Further, there will be a lot more overheads to consider than in many other startup ventures, so you will have to consider your capital sources in depth.
Step : Open A Business Bank Account & Credit Card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get and other financing in your business’s name , better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus . This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Build your company’s credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
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Differences Between Independent Living And Other Senior Housing
The key difference between independent living and other housing options is the level of assistance offered for daily living activities. If you require round-the-clock help with eating, dressing, and using the bathroom, or require regular medical assistance, other housing options such as assisted living facilities or nursing homes may be a better fit. To learn more, read Senior Housing Options.
Determine The Needed Care Level
Senior care operates on a spectrum, ranging from Independent Living Communities for active seniors, to Assisted Living Communities with varying degrees of care available, to communities that specialize in Memory Care, and much more. Within each of these levels of care, there are varying types of communities and amenities available. One of the first things a Family Advisor will do is ask you some questions to determine the right level of care for yourself or a loved one to help you narrow down your search to the best options for your needs.
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Recruit Staffers And Residents
Once you have all your licenses and funding, you can begin hiring staffers. You can serve as a clinical supervisor if you have experience with medicine. You should otherwise find an experienced physician to serve in that role.
Hire at least one in-house staffer. You can hire more, but they tend to be more expensive. You can contract most positions to an agency of care providers.
Conduct background checks on every person you hire, including janitorial staff and interns. Do not hire anyone who refuses to hand over essential documents.
Your main way of attracting residents is through networking. Talk to eldercare professionals in your area. Encourage them to send clients your way.
You can also market, but you need a number of strategies. Print advertisements in newspapers and put up billboards. Run social media campaigns, producing informative content for elderly people.
It will take time to court interest in your nursing home. Be patient and take things step-by-step.
So How Much Money Do You Need To Start An Assisted Living Facility
The amount you need will depend on a many factors. What is the cost of real estate in your area? How many changes, if any, are needed to your property? Will you be working in the facility, or hiring staff or managers to do all the work?
The exact amount is something you need to calculate for your own circumstances. But here is a list of things to keep in mind when you do the math.
- Down Payment. You may be buying, building or converting your new assisted living facility. In either case, you will probably be financing most of the price. Lenders will normally require a down payment equal to 20% to 25% of the cost. Yes, there are many ways to reduce that percentage but this is what most will need.
- Start Up Costs. So now that you have your building, its going to need furniture, equipment, supplies. Some estimate this amount to be $3,000 to $5,000 per unit after accounting for both resident unit and common space furnishings. Your facility may be more or less based on its size and on both the quantity and quality of the furnishings you provide.
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Opening Or Operating An Assisted Living Residence
There are specific legal requirements for opening and operating an assisted living residence. Find the resources you need to register and operate an assisted living residence here.
Check out the interactive online course that can provide you with information about the role and responsibilities of operating and assisted living residence. This interactive online course provides you with information about:
- the laws and regulations that apply to the operation of an assisted living residence,
- the three classes of assisted living in B.C.,
- the roles and responsibilities of an operator and their staff,
- the rights of residents, and
- operating a successful assisted living residence.
See videos of real people, both residents and staff, and test your understanding about assisted living with the knowledge check questions.
How To Start An Assisted Living Facility
An assisted living facility generally has at least 16 residents in order to be called such. Smaller facilities, which make up 80% of all facilities, are referred to as board and care facilities and may have as few as four beds. Together, they are referred to as residential care facilities. These facilities provide room, meals, housekeeping, supervision, storage and distribution of medication, and personal care assistance with basic activities like hygiene, dressing, eating, and bathing, according to the website of the California Advocates for Nursing Home Reform.
If you are looking to open a new assisted living facility or expand your current operations, here is a handy checklist on what you need to do.
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Investing In The Senior Care Industry
The senior care business has never been easy. And the Coronavirus has made it even more difficult. Unlike years back, occupancy levels are dropping as potential residents shy away from facilities that have been hit by the pandemic and even those that havent. A New York Times post shows that over 46,400 staff and residents have died so far, accounting for about one-third of the countrys fatalities.
Investors in the assisted living industry are noticing that they are more than just landlords. Theyre critical service providers dealing with increasing costs to disinfect and clear properties, offer protective gear and reinforce staff. According to experts, the cost structures of assisted living and other senior facilities are rising and will continue to do so. Soon enough, many investors wont want to be in the business because the margins are compressed.
In a new report, facilities that are still open amidst a wave of closures are experiencing a decline in usage rates and plunge in operating margins. In Massachusetts, for instance, nursing home usage dropped 5.4% between 2013 and 2017. The average operating margins fell from -0.8% to -3.9% in the same year.
