Do Your Homework Before Moving Into This Retirement Haven

Jul 10, 2018 / Amanda Chase, Horsesmouth Assistant Editor

Retirees hoping to spend their golden years in an idyllic retirement community should slow down before signing over their savings. The arrangements are convenient and often luxurious, but some older Americans may overlook the financial due diligence they need to undertake before committing to a facility.

Often retirees may shell out well over $100,000 as an initial deposit and sign on for additional monthly payments that may change over time as their need for care increases. As of the end of 2017, there were 1,955 Continuing Care Retirement Communities (CCRCs) in the U.S., according to Ziegler, an investment bank.

Here’s what you and your clients should know before you decide to live in one:

  • Amenities. These include things like floor plans, meal plans, fitness centers, and golf courses. Don’t forget to consider the assisted living and nursing care departments as well.
  • Dig into the books. Get into the details and work through them with an accountant: Key financial reports to obtain from your continuing care center include its audited financial statements, data on monthly service fee increases, financial ratios and reserves.
  • Review your state’s rules.
  • Questions to ask. How much of my entry fee is refundable? Do you work with an actuarial firm? What's included with my monthly fee and what's extra?

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