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

Share:

Recent Posts:

Correlation Between Income Taxes and Medicare Premiums

When the time has arrived where a conversation includes both taxes and Medicare, often there are more exciting items to plan for such as visiting family, traveling, golfing, or diving into a life-long hobby you’ve always been interested in. Although those other interests often take precedence, it is important to understand the correlation between income taxes and Medicare premiums as there are a few planning considerations related to the Medicare Income-Related Monthly Adjustment Amount (“IRMAA”). IRMAA is an additional surcharge for Medicare that is payable based on your income level.

Recent Quarterly Newsletters:

Thrive By Ensuring Your Loved Ones Are OK Edition

Our Q3 2022 newsletter focuses on how to thrive by ensuring your loved ones are OK. In it, we have created an eight-page fillable guide you can create for loved ones to follow after you pass. We also provide other guidance on estate planning, caring for aging parents and preparing for a potential disability.

Thrive by Learning and Growing Edition

Read our Q2 2022 newsletter on how to thrive by learning and growing. CEO Rick Manske reflects on graduation season and what this time of achievement and change means for students and loved ones. CIO Bill Hansen writes about education savings; President Harli Palme writes about tax savings related to college expenses; Portfolio Manager Nancy Blackman cautions about hidden costs of college. Advisor Charles Thompson outlines why it’s important that we value and prioritize travel. Advisors Judd Meinhart and Hilary Daniel write about job transitions and what to do with your 401(k) and new benefits. Advisor Neal Nolan ends with 10 ways to celebrate Independence Day and we highlight announcements across our firm. We hope you enjoy this edition!

Recent Whitepapers:

Stay Up To Date With Parsec

Sign up to join our mailing list and receive quarterly newsletters, whitepapers, news, and more right in your inbox.
Scroll to Top

Not a Client But want to receive updates?

Please sign up to join our mailing list and receive our latest news, thought leadership content and invitations to upcoming webinars.