W: The Planner, The Chosen Read Online Free PDF Page A

happen if one day that Social Security Direct Deposit doesn’t come because the government is out of money. But we also recognize that Social Security was in many ways a panacea that did not solve all or even many of the problems of the elderly. That is why the Administration is launching Smart Seniors—we want a holistic approach to senior living that will solve not only the problems of Social Security and Medicare but all of the problems that seniors face. Over the next three weeks, we are going to teach you how to think about a whole new way of living. Smart Seniors is not just about where s eniors live; it is about how they live.  That’s the main message you have to communicate when you are selling this program to the community—this is not about replacing your Social Security check; this is about a whole new concept of retirement.”
    The class took a fifteen minute break, and then they were back in their seats. A middle-aged man sitting across from Kris raised his hand to ask their instructor a question.  Janice acknowledged him. “Okay, you keep talking about replacing your Social Security check. I was under the impression that we were selling housing. What does housing have to do with Social Security payments?”
    “You’re compartmentalizing,” Janice replied without answering his question. “You have to begin to think holistically to understand the Smart Seniors concept. During the course of this training, you will begin to see how all of these issues work together.”
    “Okay,” Janice continued. “I have a question for you.  Who can tell me the answer first? What is the biggest recurring expense for people over age sixty-five in the U.S.?”
    Several hands went up, including Kris’.  The owners of the multiple hands called out “health care,” or “medical care” or “prescriptions,” but Kris knew the correct answer, and she knew it didn’t have anything to do with medicine.
    When the other answers had been given, Janice finally acknowledged her. “Housing is the biggest recurring expense for seniors,” Kris answered confidently.
    “Correct.”
    The middle-aged man once again raised his hand, “How can it possibly be housing? Don’t most seniors have their houses paid off?”
    Kris looked at him but said nothing. “Would you like to answer that?” Janice asked her.
    “Certainly. Yes, a majority of people age sixty-five and older have their homes paid for or are close to it. However, they still have property taxes and insurance in addition to repairs and maintenance on their housing. As people get older they tend to be able to do less for themselves, so they increasingly need to hire others to do the maintenance or to assist with housekeeping and lawn services. Even though the house may be paid for, often the retiree’s income is significantly reduced, so as a percentage of their total income, these expenses are big.”
    “What about people who get ‘reverse mortgages?’”
    “What about them?” this time Janice answered. “A Home Equity Conversion Mortgage, commonly called a ‘reverse mortgage’ can help seniors use the equity in their homes to get some extra money to cover living expenses. But what a lot of people don’t understand is that even though seniors do not have to make payments on reverse mortgages for as long as the youngest of the two borrowers or spouses lives in the home, the borrower is still responsible for the taxes and insurance on the property. Failure to pay the taxes and insurance causes the loan to default. In other words, your home can go into foreclosure because you can’t afford to pay your property taxes or your insurance.”
    Gasps of “Wow!” went around the room. Kris, of course, didn’t gasp—she already knew this information.
    “So, let’s take a look at this,” Janice clicked to begin a Power Point presentation featuring a pie chart. “The average Social Security benefit nationwide for a sixty-five year old retired worker is