How Will You Pay for Senior Care?

Mainsail Retirement is helping seniors achieve more financial stability for their retirement years and looking for people to evaluate their product offerings. They are looking for people over 70 who own their homes fully (no mortgage) to understand their needs and how their service could benefit them. If you (or someone you know) match this criteria, please email [email protected]. In return for your time and feedback over a short phone call, they offer you a $10 Amazon gift card. Thank you for your help!


We can sidestep most problems by planning ahead. Although not everybody’s strength, planning takes forethought, commitment, patience and the right mind-set. But even the best of planners, have trouble putting together strategy to pay for long-term care. 

The national average cost per month for senior housing like assisted living, skilled nursing, and residential care homes starts at $4,000 a month.  At home personal care costs $23 an hour. There is no way to avoid the expenses when you need help, but there are ways you can put a home's equity to work. 

For most older adults, the biggest asset is the home.  And today, the most common option to pay for long-term care using that asset is through a home equity program called a Reverse Mortgage.  It's a payout option where the lender makes payments to the borrower, the homeowner.

I learned about another option, Mainsail Retirement, which unlocks the home’s equity without ever having to worry about moving from the home or getting foreclosed.  A senior receives part of the home's value in cash upfront and part in guaranteed monthly payments in return for the ownership of it.  Maintenance, insurance, and property tax is handled by the new owner so the seniors can live in their home for the rest of their life.  It is not a reverse mortgage.

Mainsail Retirement, is based on a transaction originated in France (called a viager.) Viagers have been used to help older adults pay for long-term care for over a thousand years - it has actually been part of their laws since 876 AD.  However, in Europe this deal is facilitated between two individuals.  

The seller agrees to transfer the ownership of their home to the buyer for a downpayment and regular cash installments for the rest of their life.  The seller has the right to live in their home for the remainder of their life and the buyer takes over only after the seller passes away.

Mainsail Retirement wants to provide a third pillar for retirement besides social security and 401(k) by allowing people to tap into the value of their homes. Through additional guaranteed income, their goal is to make the retirement years more predictable and remove unnecessary stress so people can focus on enjoying their time.

Personal founder story:

I connected with Tamás Rolek, the co-founder and student at Columbia University, through LinkedIn several months ago.  Tamás has personal experience with this concept.  He grew up in Eastern-Europe and his family made this deal with a family friend living in the neighborhood who had no children.  With the regular cash income, this family friend could pay a caregiver and lived a quality life for the rest of her retirement years.

While doing his MBA at Columbia University, he learned about the prospect that seniors face in the U.S.: over half of them believe they will run out of money during their lifetime, while the Social Security Fund is expected to run out of money in the next 15 years. Thinking back to the deal his family made to help out their neighbor, he realized that this could be a great solution to help seniors achieve the much deserved financial stability for their retirement years and help millions of people in the United States. 

I asked Tamás:

"What's the difference between reverse Mortgages and your product?"

Mainsail Retirement is a brand new product where you will never have to worry about getting foreclosed on or leaving your home. Compared to a reverse mortgage, his clients are not taking out a mortgage or paying interest on it. There are no hidden fees that they have to pay out of pocket or add to the balance.

With Mainsail however the client sells the home, meaning they transfer the title but keep the right to live there for their lifetime. In return, the client gets part of the home value when signing and part of it through guaranteed monthly payments until they pass away. Mainsail also handles paying property tax, insurance, and basic maintenance so there is no foreclosure risk and the client can live in their home for the rest of their lifetime. 

How do the client's heirs benefit?

For those who have no heirs, Mainsail is the perfect choice as there is no incentive to leave the home and the equity in it behind.  For seniors with heirs, the heirs no longer need to worry about the financial wellbeing of Mainsail's clients.  Additionally, if our client passes away before the originally invested money has been paid out, the remainder of the original amount is paid back to the heirs.

Who pays the home insurance, property taxes and maintenance?

As part of the contract with Mainsail, home insurance, property taxes, and basic maintenance is covered for the rest of clients' lifetimes. Our clients save money on these and won't have to worry about ever again.

Mainsail Retirement is helping seniors achieve more financial stability for their retirement years and looking for people to evaluate their product offerings. They are looking for people over 70 who own their homes fully (no mortgage) to understand their needs and how their service could benefit them. If you (or someone you know) match this criteria, please email [email protected]. In return for your time and feedback over a short phone call, they offer you a $10 Amazon gift card. Thank you for your help!

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