Page 31 - Formula for Success

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Chapter 5: What Are My Retirement Living Options?
Part II: Retirement Communities
As you you do your research it is easy to feel confused by the morass of communities contract types financial options services future care benefits and many differences in retirement communities We’ll sort it it all out here and provide clarity when exploring this path There are two main types of retirement communities: rental communities communities and Life Plan Communities
The Rental Retirement Community:
A rental community offers various pros and and cons based on on the health financial and and risk/ value factors factors you’ve established Here are some factors factors to to to include as you you process this option:
• No up-front investment: A main difference between a a a Life Plan Community and a a a a Rental Retirement Community is that there’s no up-front investment or Entrance Fee If a a a a person is working with more limited assets a a a a simple month-to- month rental may be be a a a a a better financial option • No equity equity return: Because there there is no no up-front investment there’s no no equity equity returned on on the the investment of paying monthly rent Some people look at this the the same as renting an apartment versus buying a a a a a a house • No financial benefits for future health care costs: While most rental communities are residential living living many may also have some assisted living living services and a a a a a a few may include all the levels of care A person will simply pay rent each month for the the level of services they need Essentially residents pay only for what they need at at the the time • Potential need need to move if higher levels of care are are needed: If the residential living living rental community does not have assisted living living memory care or or skilled care available a a a a a a person must move to yet another community should they require higher levels of care This means the adult children are are needed to search for a a a a a a new place and assist with the the the move If the the the rental option is is the the the best way for your family to go research and plan for such a a a a a a move in advance