The Recession Hits Retirement Communities

Readers of your magazine rely on your coverage of important matters.

Since millions of seniors are residents of non-profit retirement communities, it would be most helpful if you reported on their rights.

These non-profit communities hold and use residents' deposits and monthly payments, but these residents get no title, shares of stock or other ownership rights. And have no voting rights in the selection of directors or management.

George J. Fulkerson of MI 5:02AM May 16, 2009

While indeed many CCRCs have taken an occupancy dip due to the economy, today's seniors should move in sooner than later while incentives are available. Why?

First of all, a senior must be able to live on his/her own in a CCRC's independent carriage home, villa or apartment - so waiting too long could jeopardize availability.

Second, while the housing market continues to tumble, it's better for seniors to sell now than wait. Most are still well within a comfort zone of profit since they purchased their property dozens of years ago.

Third, CCRCs that offer Type A contracts are an alternative to expensive long term care insurance, as Type A contracts lock in the lowest rates for assisted living/dementia care for when it will be needed down the road. (Average person spends three years in skilled nursing according to Kiplinger.com).

Fourth, with not-for-profit CCRCs, there are significant tax savings as the community's entrance and monthly fee may be tax deductible as a prepaid medical expense (some times as much as 30-40%).

Where is there a better financial investment in this current market? At 70, a retiree can plop down $100,000 (life long lease) and still love living life until age 105 for approx $1900 per month (utilities, 30 meals, transportation, events, fitness, health care, etc. included.)

Check out the country's largest fully accredited, not-profit owner and operator in the CCRC industry. www.ACTSretirement.com

colleen of FL 2:43PM April 06, 2009