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Subject:  Re: Math please? Date:  10/2/2012  4:34 PM
Author:  ResNullius Number:  17872 of 21950

All the responses have been good and to the point. Like everything, there are CCRCs and then there are CCRCs. The first thing we did was to check out the financial soundness of the one we looked at yesterday. There are only about 50 CCRCs in the entire country that have a "A" rating from Fitch. The second point is to only go with non-profits that have an "A" rating from Fitch. Most if not all of these are associated with a university, college, or major church denomination. The one we looked at is associated with Davidson College and the Pres Church (although religion plays no role in the place). Davidson is one of the top undergrad schools in America, and the Pres USA is one of the largest demoniations in America. Yes, it's possible they could default on their guarantee of lifetime care, but it's about 99% unlikely. Their yearly audited finacials are open to the world to see. If they were to default, you can bet that the rest of America had already defaulted. The next is to make sure that assisted care and skilled nursing are on the same premises and operated by the same facility as the independent living part. Look, I'm not pushing these places. I never thought I would consider one, but when I looked at the finances, the monthly fees (which range from around $2K to $4.5K depending on whether you're in a 450 sqft studio or a 1800 sqft cottage or condo, and everything in between), I concluded that it was a good deal. Meals included, and everything else included as well, including virtually free access to a nearby country club and a huge YMCA wellness center. They also have a massive wellness complex on the premises of the CCRC itself. Anyway, when I looked at what we currently pay for property taxes, insurance, utilities, maintenance and upkeep, it looked to be a more than a good deal. On top of everything else, a significant portion of the enrollment fee and the monthly rent/fees are deductible as medical expenses on your federal taxes. We can sell our current house and pay the entrance fee, and we'll still have a load of money left over to cover the rent for many years. Our SS alone will cover the entire monthly fees for the largest unit on the premises. All we will need to withdraw from our portfolio will be somewhere around 1% each year to pay taxes and extra living/travel expenses. The only real downside I saw was the fact that the inmate population was heavily tilted towards folks in their mid to upper 70s, 80s, and 90s. The oldest person there is 108. There are a nice number of folks under 70, so that helped some. For us, we need to move anyway, because I need to be much closer to a certain Medical Center due to reasons somewhat unique to me. Additionally, since I probably won't be around 10 years from now, it's nice to know that my wife would be taken care of for the rest of her life, without having to make these types of decisions on her own. We still haven't decided for sure yet, other than to put down a $1K deposit to get on what is a very long waiting list, although most of the folks currently on the list won't be activiely seeking to move into the place for many years yet, so the waiting list is somewhat deceptive in that regard. Regardless, we wouldn't even consider moving there for at least 4-6 years. All I can say is that it's worth keeping an open mind about things like this, because some of these types of options are really good, while some aren't so good. I watched my parents and my wife's parents stay in their respective homes too long, and they got to the point that they couldn't or wouldn't make good decisions, then when there was no choice at all left, they got left with what was available, not necessarily what they might have wanted. By the way, there was no "hard sell" at all. The place has been 99-100% occupied for many years, even with the bad economy, plus they have a huge waiting list, so a "hard sell" was hardly needed. Staying in your normal home is much to be preferred, no doubt about it, but times change and circumstances change, so it's best to be prepared as they used to say in Boy Scouts.
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