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From the issue: October 2009 Quarterly
Merrill Gardens Lifestyle Funding Options
by Bill Pettit, President, Merrill Gardens
 Merrill Gardens is a family owned company based in Seattle. Parent R.D. Merrill is a timber company with roots that go back over 100 years. The Merrill family started Merrill Gardens 16 years ago and it’s now the largest senior housing company in Washington, with 55 communities in ten states. Pettit has been with the company since its inception.
Financial Opportunities to make your move easier:
As our economy changes, we know that many seniors are focused on finding the best way to finance a move to a retirement community, like Merrill Gardens. In the past, people have relied on the sale of a home or traditional savings, but you should be aware that there are other great ways to make the move today.
There are a number of financial options that you may not have considered, which provide flexibility and access to resources when you need them.
Merrill Gardens retirement communities do not require a large upfront investment, or what is known as a “buy in” fee. Our community fee is the equivalent of your first month’s rent. Following this initial fee, you simply pay a monthly rent, which covers meals, housekeeping, transportation, and cable. We believe this model provides the flexibility you need, and does not tie up your funds.
Below are some funding options you can consider, to help you make your move.
Conventional:
You can use cash savings, CDs, IRAs, 401(k), investments, pension funds, and Social Security to form a pool of money. These options can also generate income in the form of interest, capital gains, or dividends. In turn, this money can be used to pay for your monthly rent at Merrill Gardens. Personal loans can also help fill a funding gap. Many of these investment options can also be used as a line of credit, as needed.
ElderLife Financial:
Merrill Gardens has partnered with ElderLife Financial Services to provide prospective residents, and their families, a loan to bridge the gap in funding a move to Merrill Gardens. The loan program is unique, because it allows up to six family members, friends, and concerned persons to join together to support the cost of a loved one at Merrill Gardens. Elderlife Financial provides affordable, interest-only loans, paid directly to the community. Each month, the borrower decides what they would like to send. Although each borrower on the loan is individually responsible for repaying all amounts owed, co-borrowers often informally agree among themselves to share the monthly payments. By sharing, this makes it easier for a family to cover the costs of supporting a loved one. The loans have a flexible line of credit structure, and you only use what you need when you need it.
ElderLife Financial can be especially useful for seniors who are waiting for their home to sell. It allows them the ability to move into Merrill Gardens right away, and access care as soon as it’s needed.
Real Estate:
The sale of a home is a personal decision. You may also want to explore a home equity loan, or a reverse mortgage to generate funds for a move to Merrill Gardens. Home equity loans come in many different forms, but generally enable people to use the equity in their home as collateral. If you are not ready to sell your home, consider renting it out for awhile and using the rental income to cover your monthly costs.
Insurance:
Long-term care insurance provides funds for situations not typically covered by health insurance, Medicare, or Medicaid. Assisted living at Merrill Gardens may be covered, and premiums are usually based on the age of the insured. Life settlements are another way seniors can raise funds to pay for senior living. This option typically includes selling a life insurance policy. These settlements can be done directly with an insurance company, or with a third party.
Government Options:
Benefits provided to Veterans often provide an additional source of funding for long-term care, for those who qualify.
For more information about any of these funding options, please visit our website at www.merrillgardens.com, or call a Merrill Gardens representative at 1-800-379-883. Additional video topics by Bill Pettit can be found on www.seniorguidebook.com.
*Each of these options should be carefully considered to make sure it is right for your individual situation. There are a number of legal requirements, and tax implications that should be reviewed.
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