| When I suggested that my wife’s grandfather | | | | where prices could continue to slip downward instead |
| George move into a retirement community outside | | | | of improve |
| of Detroit, I had a list of reasons why. I knew he | | | | 2) five years of dealing with costly house |
| would enjoy the proximity to family, having a peer | | | | maintenance and repairs |
| group close at hand, the chance to rekindle some | | | | 3) five years of paying higher taxes due to property |
| dormant interests and the peace of mind on-site | | | | evaluations |
| health care brings. What was missing from my list | | | | 4) five years of all the responsibilities of home |
| was the opportunity for him to save money on living | | | | ownership and the time commitments that come |
| expenses. | | | | with it |
| That is exactly what he is doing, to an estimated | | | | Living in a retirement community can eliminate those |
| $400 per month. | | | | concerns for the average senior while providing them |
| Decision to Move | | | | a much more predictable out-of-pocket cost. Here, |
| His story is similar to many people in our country | | | | the concept is shared expense distribution versus a |
| contemplating a move to a retirement or | | | | single household incurring all costs. Does anyone |
| independent living community. The decision to | | | | know how much gasoline or heating oil is going to be |
| relocate keeps getting put-off due to reasons such | | | | in the next few months, next year? In recent years, |
| as perceived costs or out-dated stereotypes of | | | | heating costs have rocketed 30% or more. |
| what a retirement community is like. | | | | Even assuming a 6% annual monthly service fee |
| Sadly, George’s wife died suddenly and he was | | | | increase from the retirement community, a senior or |
| forced to quickly make some life decisions. Should he | | | | family member can plan accordingly, and there are no |
| stay in the home he had lived in for more than 20 | | | | hidden surprises. |
| years? Move and live with one of his adult | | | | Unexpected Savings |
| children? Or move to a retirement community? | | | | Other ways someone moving to a retirement |
| After weighing all his options, George made the | | | | community can save: |
| decision that he wanted his own “space” and | | | | • Car costs drive off. Most retirement |
| soon made arrangements to move to a retirement | | | | communities offer transportation, so residents can |
| community. | | | | forgo their car, car maintenance, car insurance, and |
| Eight months after his move, he has taken up golf. | | | | paying for gas. |
| He is involved in not one, but two Bridge groups. | | | | • Health costs decrease. Retirement |
| And although he lost so much in the previous year, | | | | communities are built with a more universal design in |
| he is hopeful about the future. He is also amazed that | | | | mind. This translates into less potential for falls, |
| his living expenses have actually gone down ---- that | | | | trips, and more. Fewer accidents likely means |
| $400 savings per month will add up to almost $5,000 | | | | decreased insurance premiums and fewer hospital bills. |
| per year. | | | | • Food bills get cut. Most retirement |
| Hidden Value Revealed | | | | communities offer very affordable meal options |
| Whether someone has a mortgage or the house is | | | | eliminating the expense of buying groceries while |
| paid off, there is likely a lot of pent-up potential | | | | providing seniors with nutritional meals they may not |
| dollars to invest if equity could be taken from the | | | | be getting on their own. |
| sale of the home. There can also be a disadvantage | | | | • Entertainment, with bulk pricing. A single |
| to waiting. | | | | person goes to the theater, little chance of getting a |
| As an example, let’s assume a house can be sold | | | | significant discount. Fifty people go, and wow! |
| for $250,000 in today’s market, but the owner | | | | The economy is understandably on everyone’s |
| believes waiting five years would yield a $300,000 | | | | mind and senior living providers should be shouting |
| sale. This thinking actually loses nearly $20,000 of | | | | from the roof-tops the financial benefits of such a |
| value to the person that waits, assuming a typical | | | | life decision. In addition to the positive health and |
| 5% return on investments. Clearly stated, a person | | | | well-being retirement communities offer residents, |
| who sells the house today for $250,000 and invests | | | | they give financial peace of mind in a time of |
| the proceeds for a 5% return would earn more than | | | | uncertainty. This is more than just a benefit for my |
| the person who waits five years to sell their home. | | | | wife’s grandfather; choosing senior housing can |
| Waiting also means: | | | | benefit thousands of senior home-owners. |
| 1) five years of an uncertain real estate market | | | | |