This question of the quarter is more niche than usual, but it’s mainly because retirement communities have been the hottest topic among our clients all year. Many of our clients are approaching the phase of life where they are considering:
- “What’s next?”
- “Am I ready to have less house?”
- “Can I see myself in my house forever?”
All these questions are natural, and a retirement community could be a good option at some point.
So let’s jump into it … should you consider a retirement community? Yes, you should. Because you should consider all your options for your future. Amy and I recently toured some of the most popular retirement communities in Boulder and were pleasantly surprised at what a good option they could be for our clients. We also have many clients in retirement communities who are very happy.
Let me answer some common questions we receive about retirement communities:
What Exactly Is a Retirement Community?
There are many types of retirement communities, and they typically cater toward adults age 55 or older and offer housing, amenities, and other services tailored to an active or aging lifestyle. Some retirement communities offer “continued care,” which means as you need more healthcare over time, you can remain in the community and get more access as needed, like skilled nursing or memory care. Some retirement communities are strictly independent living, and then you’ll have to leave if you need further care. We do believe you should consider future health care needs when choosing a retirement community.
What Type of People Live in Retirement Communities?
Out of the three retirement communities I toured, I was very surprised how young and active many people were. Some of the residents were even still working! I learned that many people moved in when they were ready to downsize, they were done with the maintenance of their house, and wanted simplicity. I also learned that some residents were snow birds and had a second home they spent time at. This is an easy way for them to “lock up” and not worry about anything. Many people want the amenities, food, and community that they have to offer. Every community may attract slightly different people depending on cost, location and activities offered.
When Is a Good Time to Move to a Retirement Community?
The right time to move in is typically far before you actually need any kind of care. Ideally, you can move in when you are young and healthy enough to build a community. Like I said above, many people choose to move in when they are ready to downsize.
How Quickly Can I Get In?
This is the important part. Some retirement communities have YEARS long waitlists!! One of the local ones in Boulder has a 7- to 10-year-long waitlist. This is why it’s so important to consider all of your options far in advance. Think there is even a slight change you could want to go to a retirement community? You better get on the waitlist far in advance! Once you’re off the waitlist, part of your decision will be the available unit and if it is the one you want. Some people wait for the right unit to pop up for years. Some communities also give priority to current residents for units, meaning you have to move in and then wait for a unit to come up.
What Is the Cost?
The cost is going to vary greatly depending on what type of community and location. Some of the communities have large buy-ins. Locally in Boulder, the communities have a buy-in that range from $500,000 to $2 million. Sometimes they are partially refundable, too. What we typically see is people selling their home and using the proceeds to buy in. On top of a buy- in, they will have monthly costs. Yes, retirement communities can be expensive, but they can also be a great option for your future if you can financially manage it.
How Do I Know if I Can Afford It?
This is where we can help. We can help run projections for you, take inventory of your finances and develop a plan if this is something you’re interested in. Retirement communities will also do heavy due diligence to make sure you qualify to move into their community. We can help you understand the opportunity you have and any sacrifices you may have to make in your future.
So What Do I Do Next?
Let this blog be your sign to go tour retirement communities. Even if you (or your spouse) think you will NEVER move into one… trust us… you never know. We’ve helped many families walk this path (including my own grandparents). The more options you have in yourfuture, THE BETTER. Go tour a few in your area. Find out the costs. Get on the waitlist. I even got my parents to join a local waitlist. Your future self will thank you (as will your kids or grandkids).
What Questions Should I Ask When I Your?
- Here is a list of questions I asked when I went and toured the facilities around Boulder
- Can I see a price breakdown?
- What has been the increase in monthly fees been the last ten years?
- Can I see all the floor plan options?
- Can I tour a few units?
- What is the food like? Can I see this week’s menu?
- What are some activities you offer?
- What is the community like?
- How would you describe your average resident?
- What are the most popular activities?
- Do you bring in outside entertainment?
- How did your facility handle COVID?
- What is the average age of your resident?
- What is the average age of someone who moves in?
- How long is the waitlist?
- How long do I have to decide once I get off the waitlist? And when is payment due?
- Do you have a refundable option?
- How much is it to be on the waitlist?
- If I want to change my unit, how much can it be customized?
- What continued care is offered?
- What if my spouse gets sick but I’m still in independent living? How does the cost change?
I recommend you really envision your life there and listen to your gut if one of them calls out to you.
How Can Bloom Help?
At Bloom Wealth Advisors, we want to help guide you through every phase of your life. You may be entering into a phase that you’ve never experienced before. Chances are, at some point, we’ve helped someone on a similar path to you. We want to hear from you if we can provide you with guidance or support.
If you want to talk more about retirement communities and how they could fit into your life, reach out and we’d be happy to share our experiences. Like I said, my grandparents experienced the greatest blessing living in their retirement community, as have many of our clients. We are here for you, reach out!
Warmly,
Alana Macy, CFP®, MBA, Partner, Wealth Advisor
Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors.
This information is not intended to provide specific legal, tax or other professional advice. For a comprehensive review of your personal situation, always consult with a tax or legal advisor.
