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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]My plan for when I hit retirement is to buy a small unit with lifetime continuing care in a retirement complex and a second house or condo somewhere either for winters (six months in Florida) or coastal New England (five months in spring to fall). When the time comes, I can sell the second property and upgrade the unit to a bigger 2-bedroom and live there full time. But I will have a foot in the door so they can't kick me out if I suddenly start declining, physically or cognitively. I am single, will always be single so no spouse to help take care of me. I want the guarantee of lifetime care no matter what happens. Yes, expensive, but I can make it happen. This plan is based on what good friends of my parents have done.

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CCRCs are the way to go---good goal to be able to get in.  If you can afford one, it's the best way to know you will be well taken care of.  Paid entry fee to get my parents in (they have enough to qualify minus the entry fee).  Best thing we ever did.  They are a distance from us and refused to move closer.  This way they are well taken care of and should they need more than independent living, it will seamlessly happen, and will not cost them (or us) a penny more---that's what the huge entry fee is for.  Best part is, even if they "run out of money", the CCRC will still continue service---you are guaranteed to live your life there and they do NOT touch your monthly SS.   Most who have run out of money are women over 95---there are 4 of them currently living there who pay nothing each month, husbands have long since died.  2 are still in independent living, the other 2 are in assisted living.

If you plan well it can happen---my parents are not wealthy.  But made it happen. [/quote]

Do you have any numbers to share?  Which CCRCs are you talking about?  What's the entrance fee? monthly cost? etc.[/quote]

I'm not the PP you quoted, but I posted earlier, naming Collington in Bowie and Riderwood in Silver Spring.

There's a chart on this page with some sample pricing for Collington:  https://collington.kendal.org/living-options/pricing-information/[/quote]

They don't detail the "entrance fee."  And you don't get all of that back.  So, the monthly fee looks low because it isn't including a portion for the entrance fee.

Also, I noticed that the service level for "memory care" does not include assistance for daily grooming and toileting.  That doesn't count as an amenity until you are in long term nursing care.  The details on the website are lacking and of course they want you to think it's a good deal...to get you in the door.

If it diunds too good to be true, it probably is.[/quote]

The entrance fees are on that chart.

My mom is currently in independent living there, so I don't yet have firsthand experience with the assisted living areas, but so far we are really happy with it.  She wasn't to the point of needing help every day, but she would have recurring incidents (for instance, a UTI causing momentary dementia) that were hard for me to keep tabs on alone.  Collington does things like wellness checks if you haven't opened your front door in 24 hours.  Not to mention she's made tons of friends, who check in on her as well.  The residents are well-educated (former) professionals for the most part, and there are tons of seminars and concerts and activities to keep people engaged.  Very happy with it so far.  [/quote]

If you have two parents sharing a 2bd, for example, would you have to pay just one entry fee for the unit and two service packages?  Or two entry fees even though sharing a unit?[/quote]That's a good question, and I'm sorry, I don't know the answer.[/quote]

For my parents (not in DCUM, but a bit outside), they paid one entry fee ($450K) plus the 2nd person add on ($85K).  Then there is the monthly rent (~4500) for first person plus the 2nd person addition (~$1500).  For a 2bed/2bath, ~1200 sq ft.  The entry fee "value back" declines by 2% each month for the first 49 months (4 years)---so if you die/no longer live there, you get an amount refunded accordingly during that time.  After the 4 years, you get nothing returned.
  
If one person goes to nursing care, assisted living, or dementia care within the CCRC, the prices do not change drastically for the couple and the other gets to remain in the same 2 bed/2 bath.  If one person dies, the other gets to remain for just the $4.5K monthly rent, but can choose to downsize to a smaller unit to save $$ if desired.  The only price increase is for 3 meals/day cost that are provided in assisted living/nursing/dementia care, as in independent living you have $360/month per person which gives you easily dinner everyday and another 2-4 meals per week, possibly more depending which restaurant you choose to dine in.  So you likely will pay an extra $200-300/month for meals and that is it.  The added care levels is included in the entrance fee you paid (the $450K+ for the couple).  [/quote]

With cost of capital factored in, their entrance fees is about $700K ($535+ interest).  Amortized over 50 months, that's about $14K/month.  Add their $6K/month, they are paying $20K/month for 50 months and $6K/month thereafter, assuming they are healthy.  Forget the other costs to keep it simple.  Question is what happens to the cost if one or both of them need additional care (dementia, parkinson's, mobility issues, etc.).  How much do those costs go up?  You talk about "running out of money" in another post?  What does that mean? Are there any stipulations on drawing down of their other assets to pay for care?  [/quote]

Cost do not go up.  If they need additional care they transfer to that area with no additional cost except for meals.   No stipulations, if they have money the “rent is paid” but social security is not touched.  So their assets they had entering is the only money used to pay—ss is not included.  So ovbsiouslynif one lives to 90+ they may run out of money but then not required to pay anything.   Obviously the ccrc makes money on most people, and looses on a few.   
Yes it is a high fee but nice to know they are taken care of no matter what. [/quote]

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