What You Need to Know About Continuing Care Retirement Communities (CCRCs)

I fear that for many, myself included, continuing care retirement communities (CCRCs) are something that we don’t want to think about. At least not now. I’m healthy overall, working full-time and staying busy with my family. But our children are flying the nest and now might just be the time for me — and you — to start this dreaded, albeit crucial, planning. Moreover, it is important to know your options for aging parents or other loved ones who might be in need of more assistance.

It’s safe to assume you are going to need assisted living at some point in your life, and you should make plans for how you want to receive that care.

As a planner both professionally and personally I think it’s important to consider not just the numbers but also the softer side of choosing a retirement community. There are different types of CCRCs. Weigh the costs and benefits of each type to determine which one will best suit your needs and desires.

There is an entire process for how to choose a retirement community. I encourage you to start this process when you are in your 60s, as the waiting lists are long at many communities.

First, I suggest you review the North Carolina insurance commissioner’s reference guide to choosing a CCRC: ncdoi.gov/documents/continuing-care-retirement-communities/ccrc-reference-guide

When you are creating your list of options, look beyond the marketing materials and review the finances of the organization. The organization’s website is a good place to start your research. Then, for those you gravitate toward, take a complete tour of the community to make sure you see all the levels of care in the community and ensure that they meet your expectations and needs.

Lastly, tax planning can play an important role in the CCRC decision process. Depending on your individual situation, you may be able to make some significant tax planning decisions as part of your move into a CCRC. Your Parsec advisor can review those scenarios with you.

For more information on CCRCs, I recommend this podcast where our Co-Director of Tax Services Larry Harris spoke with Kathy Foster from Asheville’s Deerfield Episcopal Retirement Community: soundcloud.com/parsec-financial/ccrc.

As you consider all this information, talk with your Parsec advisor. They can help you evaluate retirement living options and develop a plan around your individual goals.

Terry Redman, CFP, CPA
Financial Planning Strategist


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