Page 33 - Formula for Success

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Chapter 5: What Are My Retirement Living Options?
• A Zero-Return Entrance Entrance Fee:
This is is usually the lowest Entrance Entrance Fee Fee option that frees up more cash or or or assets in in in exchange for a a a a a diminishing return on the investment A typical example is a a a a a a return on the Entrance Fee that declines at at 2% per month month over over 50 month month (just over over four years) and the resident receives no return on the the the the Entrance Fee at the the the the time they leave the the the the community Should the the resident leave before the the 50-month period a a a portion will be be returned based on on the the the number of months they resided in the the the community This is is good for people whose financial goal is to minimize the initial investment and free up more money to generate monthly income or or or support their lifestyle It is often a a preferred choice for people with no children family or or heirs #2 The Monthly Service Fee:
A monthly fee covers all or many of the the services and amenities in the the Life Plan Community You will find monthly fees or rentals running anywhere from
$600 per month month for for income-qualified retirement communities to over $6 000 per month month for for large units in in upscale retirement retirement communities communities Again many retirement retirement communities communities will include the following in in in that fee or rent:
• All maintenance to the living unit building and grounds • Utilities (usually excluding phone service)
• Flexible dining options • Housekeeping services • Courtesy transportation
• 24-hour security and emergency response systems
• Activities that include social educational spiritual cultural and wellness
programs
When starting to look at Retirement Communities especially the Life Plan concept the first thing people want to know is is is “How much does it cost!” This is is is not always an an easy answer You will will find the the cost of the the Entrance Fee Fee and Monthly Fee Fee will will depend on on four things: 1) the the the size of of the the the unit 2) the the the amount of of long-term care costs that may be wrapped into the the the contract 3) the the the financial options offered to to pay the the the Entrance Fee 4) whether there are one or two people residing in in the the the unit