Financial Planning for Clients Considering a Continuing Care Retirement Community

Facing increasing life expectancies, many clients will explore the possibility of living in a continuing care retirement community (CCRC). The financial advisor can provide insight on the financial implications of this decision. CCRCS provide three levels of care: independent living, assisted living...

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Bibliographic Details
Published inJournal of Financial Planning Vol. 21; no. 7; p. 49
Main Authors Mayes, Sarah L, Nelms, Linda L
Format Trade Publication Article
LanguageEnglish
Published Denver Financial Planning Association 01.07.2008
Subjects
Fees & charges
Financial planners
Life expectancy
Planning
Retirement communities
United States > US
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Summary:Facing increasing life expectancies, many clients will explore the possibility of living in a continuing care retirement community (CCRC). The financial advisor can provide insight on the financial implications of this decision. CCRCS provide three levels of care: independent living, assisted living, and skilled nursing care, and the ability to move from one level to the next. If clients express an interest in CCRCs, they should check immediately to see if there is a waiting list. Some can be very long. Pre-planning is vital for CCRCs. Amenities, from swimming pools to meal plans, vary dramatically from facility to facility, and CCRCs bundle such amenities differently. Funding the sometimes steep entrance fees takes careful planning and timing. Tax considerations are also important. Financial advisors can help clients estimate the potential need for higher levels of care in order to determine what type of CCRC facility to enter.
ISSN:1040-3981