Page 32 - Formula for Success

32
Reinventing Your Lifestyle: A Formula for Success
• Lease agreement = easy in and out: Sometimes people need to move from
their their home now but they plan to relocate again in in a a a a a a year or so so when their their son/ daughter retires People in this type of situation should look at at the Rental Retirement Community option as it it is best to avoid investing in in in an an Entrance Fee required at a a a a a a a a Life Plan Community only to to have to to walk away from
a a a a a a a a portion of that investment a a a a a a short time later Many rental communities will require a a a a a a one- year lease with a a a a a a a “no penalty out” for serious illness or or death making it it easy to enter into a a a a rental agreement and get out of it quickly Life Plan Communities:
This type of community usually has Residential Living Living Assisted Living Living or Personal Care Care and Skilled Nursing Care Care all available on the same campus It also may include specialized memory care and sub-acute rehabilitation These communities are are designed so the the resident moves into the the community while still functioning at an independent level and within this very “user friendly” environment they are now positioned for the the rest of of their aging journey It provides the the the full continuum of of care care as the the the person’s care care needs change There are two financial components with most Life Plan Communities #1 The Entrance Fee:
A larger up-front investment much like buying a a a house Many people use use the equity they have in in their home or or a a a a portion of it to fund this Entrance Fee Like buying a a a a car or a a a a a a a a a house there is a a a a a a a a a wide range of of prices available The cost of of Entrance Fees can range from
$40 000 to to to more than a a a a a million dollars! This brings us back to to to the need to to to understand how much money you you have to work with when you you start researching Many communities will offer several ways or financial options to make this initial investment • A Return or Refundable Entrance Entrance Fee:
This is is a a a a return offered on the Entrance Entrance Fee at the the the time the the the resident leaves the the the community or moves to a a a higher level of of care It usually ranges anywhere from
50% to 100% of of what was originally invested Some communities will offer several return return options a a 90% return return in in exchange exchange for for a a a a a a higher Entrance Fee or or or a a a a a a 50% return in in exchange exchange for for a a a a a a slightly lower Entrance Fee This is is is good for people whose financial goal is is is asset preservation