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4 Mistakes Seniors Make When Remodeling

By U.S. News & World Report

Once you hit your 50s, a home remodeling job requires you to think about more than simply whether you’d like granite in the kitchen or tile in the bathroom. Older Americans need to keep a close eye on their future needs and finances before spending time and money to overhaul their living spaces.

If you’re planning to invest in a home upgrade, take care to avoid these four costly mistakes.

Mistake No. 1: Remodeling and then moving.

Joe Heider, founder of Cirrus Wealth Management in Cleveland, says he sees some pre-retirees build monster-size houses or undertake expensive remodels just before leaving the workforce. “[Some] empty nesters build a huge house that’s almost a living monument to themselves,” he says.

However, once retirement hits, seniors may decide they want to downsize or move closer to the grandkids. Then, they have spent a significant amount of money on updates only to discover they can’t sell for a price that will allow them to recoup their investment.

It’s a mistake to spend money on a remodel without clear expectations for your future in the house. If you plan on your current home being your last home, remodeling can be smart. If you could be moving in a few years, it may be better to save your money for an update to your next home.

Mistake No. 2: Forgetting to plan for future needs.

Anticipating future needs is a vital part of remodeling a senior’s home. While no one wants to think about having limited mobility in the future, failing to plan for the possibility can be an expensive mistake. Kermit Baker, the chief economist for the American Institute of Architects, says accessible homes for seniors should at least include the following features:

— Bedroom and full bathroom on the main floor

— No-step entry into the home

— No steps between rooms

Instead of keeping old design styles, a home remodel for a senior should include wide spaces and an open floor plan. “I live in a home built, I think, in the 1880s, and it’s an example of everything you shouldn’t do,” Baker says. His house has narrow halls and doorways that would prove difficult for anyone with a walker or wheelchair to navigate.

Valerie Dolenga, spokeswoman for adult community developer Del Webb, says a number of trends in senior housing focus on “aging in place,” meaning they help people remain in their homes longer. Aging-in-place features include curved, multilevel countertops in the kitchen that accommodate wheelchairs and easily accessible appliances. “We’re starting to put laundry near the master suite, so you’re not hauling clothes all over the house,” she says.

Mistake No. 3: Going into deep debt to remodel.

Before anyone takes a remodeling sledgehammer to your walls, you need to run the numbers to be sure you can comfortably afford the planned improvements and upgrades.

For seniors, the money aspect of a remodel is particularly important because they typically live on a fixed income. Going into debt to finance a remodel may be convenient, but it means adding another monthly bill to what could already be a stretched budget. If the debt is incurred as a home equity line of credit or a second mortgage, it could mean your children or heirs will have to sell the house if you pass away before the debt is repaid.

Mistake No. 4: Depleting retirement money to pay for a remodel.

If going into debt to finance a remodel is a mistake, it may seem as though paying cash from a retirement account is a better option. However, Heider cautions against being quick to dip into those funds for a housing upgrade. He suggests asking yourself, “How is that going to impact [your] available cash going forward?”

Pulling cash from a retirement fund could leave you strapped for money later in life, at a time when medical bills are mounting and no additional money is coming in. Even if you feel comfortable pulling a certain amount from retirement accounts for a remodel, Heider notes it’s easy to overspend. “For another grand you can do this or that and pretty soon you’re at a number you can’t afford,” he says.

While the remodeling process can be riddled with potential pitfalls, Dolenga says your best bet is to remodel early and while you’re healthy. If you upgrade your home while you’re still working, you may be able to afford additional improvements. And installing features such as grab bars in the bathroom or lower light switches now, means you won’t have to worry about scrambling to add them later.

Seniors who want a remodel that will meet both their current and future needs may find it helpful to work with a professional designated a National Association of Home Builders Certified Aging-in-Space Specialist.

More from U.S. News

8 Home Remodeling Projects That Are Worth the Money

How Much You Need to Buy a Retirement Home in 10 Cities

50 Affordable Places to Buy a Retirement Home

4 Mistakes Seniors Make When Remodeling originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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