Having a Lot of Money Saving is NOT GOOD!!!

[tifnglen]

Well thats what my aunt said. She works as an LPN at a nursing home and she said that having a large nest egg is not good for some old people. She said she has seen people have a lot of money saved and ALL of it goes to nursing home expenses or health care. And she said that you wont be able to qualify for govt programs like medicare or medicaid cant remember which. So she thinks that people live about the same with or without a large nest egg because of the govts help. Then she went on to say that money has ruined some peoples lives like oprah and michael jackson. SHe said as long as she is happy and not struggling she is ok. She is 44 and i have casually mentioned to her several times about starting to save. It sounds to me like she is going to solely rely on the govt. I dont know what else to say to her. Suggestions??

[Joan.of.the.Arch]

Not everyone lives their old age in a nursing home. Most do not. Most do not even live their last weeks in a nursing home. You'll have many of the same expenses as a retired person as you did as a working person. It sounds as if your aunt plans to live in a nursing home! She may have lost her perspective by working in one.

[tifnglen]

I dont know she has seen a lot of people spend there last days in a nh and her point is they dont get to enjoy there money so all of there years of saying is a waste

[JanH]

My mother had to eventually use up my grandmother's savings in order to get government help for her nursing care with alzheimer's. But before that, her savings helped her be able to live in a private facility with extra attention and help from more aides. The final nursing facility staff were great, but they have so many to take care of. Mom and others helped each other so that the staff could take care of those with no one there. My grandmother's savings did help her quality of life in those years.

[crabbypatty]

She's talking about spend down in order to qualify for govt aid right? I don't know much about it but I've heard that people with significant assets often put their money/property in trusts or give it away (the 12k a year gift law?) to avoid having to spend it all on long term care.

I understand why your aunt is saying this, but it sounds like a rationalization to me so she feels better about not saving.

[cschin4]

Is Oprah struggling? She looks pretty content to me.

[PRICEPLUS]

I intend to save as much as possible. As for living in a nursing home I'd prefer the .16 cent solution! I have seen what that life is like and there is no way!

[JoyJoy]

Spend down (thanks crabbypatty!! I was trying to remember this term for some friends of mine) is the usually the plan one has to go through before medicaid can be approved to help with nursing home costs. Medicare just doesn't pay for it all.

The following is medicaid eligibility as it pertains to elder care in Virginia, Maryland and Washington, D.C., but it also applied to my mom's case in Michigan. Perhaps these requirements are country-wide when it comes to qualifying for medicaid: The Estate Planning & Elder Law Firm, P.C. - Medicaid Elegibility

I do know the first thing nursing facilities want to know is how much money do you have in savings!!

[tifnglen]

Is Oprah struggling? She looks pretty content to me.

No she was refurring to her not being married and being alone. But i dont know if not being being has anything to do with her money.

[tifnglen]

oh i forgot to add that this convo came up after i mentioned to her that my 20 yr old cousin (her son) should think about starting a roth ira for retirement as i recently did. he is currently working to jobs and i have not been able to talk to him so i asked her to relay the message but dont know if hell get it though.

[JoyJoy]

Is Oprah struggling? She looks pretty content to me.

LOL cschin4!! I know this is WAYYYYY off the subject, but Oprah does look content and I haven't heard her speak of Stedman in ages!! Not once did she or Gail mention him during their cross-country trip...nor was Stedman on Oprah's Valentine's Day Show for Lovers.

Perhaps that is why she is content in her aging years!

[disneysteve]

She said she has seen people have a lot of money saved and ALL of it goes to nursing home expenses or health care.

So she thinks that people live about the same with or without a large nest egg because of the govts help.

There is no reasoning with someone like that so don't even try. Just do what you know is the right thing and let her end up depending on social security and government assistance as her sole support. Hopefully, she'll come to her senses before it's too late.

Obviously, all she sees is how people are living AFTER entering the nursing home. What she doesn't see is what happened before that. Let's say the average resident comes in around age 80, but they retired at 65 or 62. She doesn't see how they lived for the 15 years before she met them.

My mom is almost 77 and has been living on savings for over 15 years. Other than Social Security, she gets no outside assistance and she lives very nicely. Had she and my father not been good savers over the years, she'd be in horrible shape now and couldn't possibly afford even the fairly simple lifestyle she has. She's been on numerous vacations including a couple of cruises. She goes to shows, goes out to eat, does everything we all enjoy doing. How exactly would she do any of that if her only income was SS?

Anyone who thinks people live just as well on government assistance as they do with personal savings needs to spend some time working with retirees who are subsisting only on SS payments.

[Ima saver]

I agree with Steve. I have not had any family relative in a nursing home ever. I plan to save my money and live on my savings in retirement. I don't want to have to rely on the government for assistance.
What is the 16 cent solution, Paul?

[asmom]

While I understand what your aunt it talking about, her conclusion about saving money is not logical. If she is worried about being able to afford a nursing home in her old age, she should consider long-term care insurance. Additionally, if she has enough money saved perhaps she could pay for care in her home.

Just a few weeks ago, I had an elderly lady complain to me (I'm an RN) because she could not afford the $4 co-pay for her meds. That's what she had to pay after Medicare paid their part. Does she want to be 75 years old and crying because she can't afford to pay a lousy 4 bucks for her meds? That lady gave me chills.

[scfr]

Only one of my 4 grandparents lived in a nursing home for a long time before dying.


Two lived in an assisted living center (with one needing a very brief nursing home stay just at the very end).

One lived at home until the last couple weeks of life.

Because they had money saved, they were able to make their own choices about what types of facilities they would live in and what type of care they would receive.

I don't want the government making those decisions for me.