Retirement Living Options
From the Orange Couch

Robin:

Hi, this is Robin Tull with Tull Financial Group. I am here on the Orange Couch answering questions that you direct to us about financial planning and the things that you’re experiencing.

As you probably know, there are about 11,400 people who turn 65 every day in the U.S. and many of those people need to begin to think about where they’re going to live as they age. So related to that, we have our own Amy Pucci, who is a Certified Senior Advisor.^® She helps many of our clients in this particular area. So, Amy, welcome to the Orange Couch.

Amy:

Thank you, Robin. This is such an important topic that many families don’t think about until they’re in the middle of a stressful situation, whether that’s for themselves or their parents.

Robin:

Let’s start with the basics. What are the areas that people could live as they age? What are the choices they have?

Amy:

One that we hear about often is aging in place. People want to stay in their own homes. The next is independent living. You have assisted living, and then Continuing Care Retirement Communities (CCRCs) or a Life Plan Community.

Robin:

I’m very familiar with aging in place. My mother always said she wanted to live at home, and she did up until she was 93 years old. She liked that independence. She liked cooking her own meals. The nice thing that she had was her family close by, and I think aging in place requires some family to be there, right?

Amy:

It really does. When you think about the what-ifs, what if you get sick? What if you fall? What if you have a stroke? All of those types of things. Things are great when your family is there to help take care of you, but what if you need care around the clock or more medical nursing care? Well, then in that situation, you would hire someone to come in and that can get expensive, like $25 to $35 per hour.

Robin:

It can, for medical care.

Robin:

I think the next thing we usually talk about is independent living, and that’s pretty common today in different neighborhoods, right? Tell us a little bit about independent living.

Amy:

Independent living can be anything from the 55 and over communities to apartment-type living where you have your own apartment, but there are lots of social activities, keeping your body and your mind going, which is very important as we age. So then most of them are 65, 62 years old and above.

Robin:

I had a client who just wanted someplace to live where somebody would check on them every so often. Tell us a little about assisted living. What does that mean?

Amy:

Many times independent living can turn into assisted living. Sometimes they’re one in the same, and other times it’s just an assisted living facility. Most of them are apartment-type living where you have your own space. Then, as you need levels of care, the price goes up. So it’s a monthly rent.

My mom is in assisted living in Florida. She’s had her own apartment. She’s been there for 3-4 years and didn’t need any care. Now recently, she’s starting to need some care, so there’s an added cost to her rent for the level of care that she’s receiving.

Robin:

What can really get expensive is what we call CCRCs. We do a lot of planning in this particular area because there’s some money that has to be deposited up front.

Amy:

That’s correct. Usually, it’s a buy-in that’s required. There’s a contract that goes along with that. Most people would sell their homes and they buy into a place like Westminster Canterbury or Harbor’s Edge. There are also places like Lake Prince Woods out in Suffolk or Atlantic Shores, where you have your own house – almost like a condo or a cottage – but assisted living is there as you need it. So, you’re paying that upfront cost. You get a tax deduction for that. But it does require a large bill up front.

Robin:

How do you determine which one’s best for you?

Amy:

I encourage you to go out and look. We held a workshop here last year, and we had a couple that came in, and they had no intentions of looking at any type of independent living or CCRC. But then after we had our workshop, they went out, and they looked, and it’s really been fun to follow them through their journey and help them plan. We go to places with them to look at and to talk with the salespeople and find out what’s all involved. And then we come back to the table here, and we do the financial plan and see how that fits into their overall picture. But it’s really about lifestyles. What do you want? How do you want to live the rest of your life? How do you want to be cared for?

Robin:

I hear so many good comments about your meetings with our clients and I know you actually go visit some of these sites with them.

Robin:

What’s the last thing you would say to encourage somebody who is 65 or older? What should they be thinking about?

Amy:

I would say start this conversation now. It’s never too early. Start thinking about your circumstances. Do you have family that can help you or do you want to put them in that situation? What kind of life do you want? What kind of lifestyle – do you want to be more active? Because sometimes, as we age, we tend to sit at home and really not do much, which isn’t good. So, plan now. Come in and talk with us and let us fit it into your financial plan.

Robin:

Thank you, Amy. This is such valuable information. I get a lot of these questions in this particular area. May I encourage you to reach out, give us a call, set up an appointment with Amy. We’d love to talk with you. It’s an important part of financial planning, which is what we do. Thank you for joining us, and I look forward to joining you next time on the Orange Couch.