just an fyi to clarify some concerns:
1) H. condition to continue to deteriorate, that we all expect - there will be good days, bad days, but we all know what the trend is
2) for now, the M-F outside caregivers + weekend kid duty is working best as can be expected for all
3) sooner/later weekend kid duty won't work, as when H. is completely immobile - which kids can do the care on their own at that point? Related to this is the gradual need for more complex medical/physical care (e.g., treating bedsores, acute breathing difficulties) ... when that begins, the stuff we currently do for H. will appear as a walk in the park.
4) when kid duty is no longer workable, more outside caregivers will be necessary, more $ needed, probably at higher hourly rate
5) projected cost of -current- caregivers is $100K per year.
6) H. bank acct = ~ 30K
7) current funds support 1/3 cost of a year at current burn rate, i.e., 4 months
8) H. monthly income ($2K ???) extends that a little, kid $ extends that some more
9) home equity is a source of $ to support H.-stayAtHome beyond bank acct balance + kid support
10) still, the $ burn rate appears too great to be supported by these much longer. NOTE: If I have not done the math correctly, let me know - I am hoping I have made a mistake in my projection of $ coverage lasting for 4 months. There may be more current $ info that I am unaware of that I have not taken into account.
this, I think is the crux of our problem - not enough $ resources to keep H. at home for what could be an extended period - this of course is the unknown that is making it so complex.
secondarily is the whole nursing home situation - from my readings of all who have done the difficult research, there are many legal issues involved with getting a check-in arranged ... there are govtIns asset reqmnts, there are Morris/marriage related issues, there may be unexpected issues that come up as we go in this direction ... all of this implies long time frame to get this accomplished. That is why moving out in this direction should begin now ... get ready for it, get everything done but the check-in and then bide our time til absolutely no question it is the only thing to be done. This may be wishful thinking that we can do this, but maybe we can.
comments welcome.
thx.
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fyi - b'fast option = p'butter on toast (1/4 slice) + jelly (no butter) on toast (1/4 slice).
H. had this for b'fast each day I was at Ivanhoe fixing b'fast.
I was out last week and just catching up.
J - I agree with your comments and provide the following update for the cashflows.
Income
Pension, Soc Sec and VA = $27.5
Morris @$500/mo = $6
Annual Income = $33.5
($2,800/mo)
Expenses
House = $11.4
Personal = $4.8
Caregivers (no taxes) = $60.6 (w/Friday’s $67.7)
Penn Treaty Reimbursement $10.8
Annual Expenses = $66.0
($5,500/mo)
Net Annual Expense = $32.5
($2,700/mo)
Net Worth = $108,000
(Based on Net House Value of $174,000)
($20,000 in cash, remainder is home equity)
Current Coverage Available: 3 years and 4 months
Current Cash Available (approx) = $20,000
Monthly Net Expense = $2,700
Current Cash Coverage Available: 7 months
Also, I would be happy to help out on the Rev Mtg analysis re: options on structures, rates, etc. Do we have any specific quotes or proposals yet? Also, Bob and I discussed and if things don't work out with this option, we could fund via an extension of current mortgage (would have to be an arms-length market rate to pass IRS issues re: income to Mom - but would be much lower than a bank rate and no upfront fees). I'm still trying to educate myself re: rev mtg's. I think we have to pay off the rev mtg when Mom moves out of the house and into a nursing home? So we would then sell the house to pay off the loan - is there a set time limit we have to do this or is that negotiable?
Also, re: concerns about running out of cash, Mom also has a home equity line for about $60 - $80,000. We paid off her balance ($8,700) several months ago since she had a lot of cash in her checking account. I think it should still be in place since it is tied to the checking account for overdrafts. I'll confirm with the bank. I'll also check out the current rate - more than likely higher than some of these other options. Because of the higher rate, it would only make sense as a backstop for any cashflow shortages in the near term, but it is there for us.
PS I think my numbers are correct but please let me know if I forgot anything or if they don't make sense to you. I'll send out an updated spreadsheet so you can see all the details - only major changes I think from the last time were for caregiver expenses wo/taxes and wo/Fridays.
One thing I don't understand in figures: Is the Penn Treaty Reimbursement an expense? Thanks.
No, it's just netting against the caregiver expense. Should have put a minus sign next to it. I always just kept these two items together to get Net Caregiver Expense is $49.8 - $60.6 minus $10.8. Net Annual is the same (I hope.)
Thanks. I thought it was some sort of accounting decision.....I'm not too good with figures.....understand it better now.
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