During my financial planning days I used to speak to groups of older Adults on a fairly regular basis. With approximately fourteen CCRCs or Lifecare communities within about a 30 mile radius of my office I frequently received questions about these communities. In some cases, those I spoke with were trying to compare two or three different communities. The questions I received typically focused on types of contracts and payment plans, financial stability, non-profits versus for profits, and, of course, affordability. It is this last one that I want to focus on in this post.
Statistics show that residents of CCRCs are, on average, more affluent than the general 65+ population. My experience in talking with prospective residents is that, from a financial perspective, the question is not so much about “can I afford it” as much as it is “to what extent can I afford it?” Many who are considering moving to a Continuing Care Retirement Community want a better understanding of what the financial impact to their estate could be based on a range of possible scenarios. For instance, “what if I live in the community for twenty years and require five years of care.” Or, “what if I live only fifteen years but require ten years of care?” They want to know how much will be left over for the kids in these scenarios after paying an entry fee, monthly fees, and the cost of care?
For many who ask these questions, or, in some cases, their adult children, it is hard to find answers. Some will try to “run the numbers” at home using an excel spreadsheet, but it is nearly impossible to account for all the moving parts, such as entry fees, refundable entry fees, fee adjustments that might take place within the community (which will vary depending on the type of resident contract and get even more complicated for couples), the impact of long term care insurance, inflation, growth on investments, etc.
The other option is to consult with a financial advisor, but the problem with this approach is that most advisors don’t have an in-depth knowledge of CCRCs; therefore, projections are not accurate because data is either left out or entered incorrectly. Furthermore, the software they have available is typically designed for financial and investment planning; also not accounting for the nuances described above.
Surely there must be a better way for prospective residents and their families to gain a more clear understanding of the potential financial impact of moving to a CCRC. I’m pleased to say that now there is!
Created by LifeSite Logics, DecisionGenie is designed specifically for those considering a continuing care retirement community or lifecare community. Within a matter of minutes DecisionGenie will generate an easy-to-understand report revealing total savings and investments at the end of each year after accounting for the various inputs related to pricing, cost of care, type of contract, etc. The results are obviously hypothetical and based on a number of assumptions (as is the case with any financial software that projects future results) but the nice thing is that you can quickly change inputs and then re-calculate to see a range of scenarios, thus providing a general sense of what might be expected.
So how can you access DecisionGenie? There are three versions available through LifeSite Logics. The LifeSite Logics website provides a free version and a paid version. The paid version is $39.95 for 14-days of access. Our most advanced and flexible version is available on through subscribing entities, such as financial advisors and retirement communities, who have unlimited access throughout the year and can sit down with you and generate projections based on what you would like to see. For a listing of subscribers please contact LifeSite Logics at firstname.lastname@example.org.
FREE Detailed Profile Reports on CCRCs/Life Plan Communities