Senior Living Communities

Are we there yet? Are we there yet? Are we there yet?

Most of us can relate to the long car rides as kids or with our kids where they continuously asked that question. The same question can be asked about timing the big move out of our homes and into senior living facilities. You don’t want to give up your “freedom” too soon but want to have a place selected before you are no longer able to make the decision for yourself. For some this move means freedom from housework, freedom from cooking, lots of fun activities, free transportation, and a great social opportunity. For others, this is dread. It all comes down to the community. This blog breaks down the big decisions in five parts.

Part 1. Decide what type of place best suits your physical/mental state at the time of your move and future needs. Your options are:

55+ Community for Independent Living

• Age restricted, active recreational amenities, minimal or no medical support

Independent Living Community

• 1-3 bedroom units, often includes meals, housekeeping, utilities, activities, transportation to medical or shopping centers, limited medical support

Assisted Living

• Studio to 1 bedroom units, meals included, housekeeping, utilities, less activities, assistance with Activities of Daily Living “ADLs” such as bathing, dressing, and medication management, transportation if able

Memory Care

• Secure, specialized communities for those suffering from any type of dementia
• Residents are reliant on family and friends to gain outside access, new clothes, favorite foods, etc. and may be the MOST important community to choose in advance rather than being stuck somewhere less than ideal

Nursing Home

• Hospital type rooms; hospital level nursing care may be available

Continuing Care Retirement Communities “CCRCs”

• Residents move in as Independent Living Residents
  Access to Assisted, Memory and Nursing Care is guaranteed as residents age

Aging in Place

• Staying in your home and hiring a live-in nurse or bringing in help for X number of hours a day

Part 2. How will you pay for the expenses? Evaluate your financial situation for affordability. If you haven’t yet done a financial plan, building a plan will help answer this question.

• Home equity or personal savings?
• Long Term Care or Life Insurance Rider?
• Veterans Affairs “VA” Benefits?
• Medicaid?

Part 3. There are many types of financial structures when it comes to Senior Living Communities.

1. Monthly rental facilities with minimal move-in/upfront fees
2. Large down payment + monthly rental fees (no ownership or rebate of upfront fee)
3. Capital outlay + monthly rental fees (ownership of unit or rebate after death to estate)
4. Purchase real estate + monthly rental fees
5. Various versions of the above

Part 4. Is this move only for a spouse or jointly for the rest of your lives?

Part 5. Vet the Community!

Once Part 1 & 2 have been decided, your choices from Part 3 may become limited. Depending on your state and specific market, availability can be a genuine concern. In one of the markets I researched, the most desired communities have a wait list 2-3 years long! It is best to put your name in and ask to be skipped rather than wait three years when you want to move.

Senior Care Facilities are now often owned by Wall Street looking to make a profit. Some have been cited for poor care or mishandling of residents. Making the decision to move somewhere for the rest of your life after meeting with one sales representative and taking a tour is daunting. Not all Senior Facilities are as advertised. The reality of the situation is that the answers to these questions are not simple.

Things to consider during your search

1. Take at least one, but preferably several meals at the community. This restaurant will be where you eat for the rest of your life. Ask to meet other residents and have them join you. Don’t be shy about asking them what they like and what they would like to see improved.
2. Ask about the community’s finances, ownership history, and occupancy. Do they cap the rental rate increases year over year? Look for a stable operator, operating at a profit, and preferably occupancy over 90%. Anything below 75% occupancy needs an explanation.
3. Ask around in your community/circle of friends if they know anyone who currently lives there and ask that resident for feedback.
4. Ask for state inspection reports. For those needing some medical assistance ask about response times when asking for help.
5. Ask what happens if you decide to move from a financial standpoint.
6. Ask for wait list times.
7. Ask what would happen if you ran out of finances.
8. Ask about average staff turnover.

So, “are we there yet?” Maybe not today. But when the time comes having a solid financial plan in place will ensure the answer brings peace of mind rather than panic. If you are unsure how a move like this impacts your long-term financial picture, let’s sit down and build a plan that works for you.