✨ Pricing; Costs; Finances

New member and first post--hope this belongs here!

Wanted to join NaCCRA in order to get some perspective from those of you who have moved to a CCRC, and finding good info here. Then thought I could ask members about my dilemma:

I have been looking at my options for a move from my home, and am considering a CCRC LIfe A contract.

I definitely qualify financially for the IL size unit I am considering. I have no LTC, am now a widow in my early 70s and alone, and find myself very attracted to the setting up of "care" for myself, in the many ways a CCRC seems to fulfill that, from the LTC aspect, but also from some of the amenities--dining, a ready-made community, SO many activities, even housekeeping and linen service feel like ways to "care" for myself.

But, in making this move, I will no longer be able to be a "saver" and will move to being a "spender." I've done the math; at my current income and expenses, I have 37 years of cash assets to fund living, and that's without touching my investment assets. So, I can clearly do this.

But I struggle with that transition. It is soooo ingrained in me to be frugal with money, to save and save and save, and the thought of letting that go makes me anxious, even as I know, in my head, that my money and assets come from decades of hard work, and it is time to spend on me.

Any words of advice to make that switch?

Thanks.

Looks like you are what is called a "solo-ager," and this category of agers is growing. Our needs differently in many ways from other retirees. You are on the right path. We solo-agers must spend more time and plan more carefully because there is no one to automatically jump in for us. You are on the right track. Be assured, the decisions you are making are life altering and any decision of such magnitude is going to come along with considerable worry and fear. Everyone faces this part of the journey.

1) The relief of making those difficult decisions early is immense - no more "what-if" worries. You planned ahead.

2) The 24/7 emergency security system gives you peace of mind as someone is always there.

3) Professional services such as social workers to help navigate through unexpected issues.

4) Think of your move as "choosing your family." Among the hundreds of residents, you will find kindred souls with similar interests who care for and watch out for each other.

Here are some references that may help:

AARP: The Solo Ager’s Guide to Retirement – Insights on why "Life Plan Communities" (CCRCs) are a top choice for those without kids.

The Mather Institute: The Age Well Study – Research proving that residents in CCRCs report higher levels of social, emotional, and physical wellness than those aging alone at home.

LeadingAge: Aging Without a Net – Professional white papers on how senior living providers are specifically evolving to support the needs of solo residents.

Maura Conry (solo-ager)

NaCCRA Forum Facilitator

Wendy,

To loosen your grip on being a "saver", it might help to read the following books:

"How Much Can I Spend in Retirement? - A Guide to Investment-Based Retirement Income Strategies", 2017, by Wade Pfau, a widely recognized expert in the field of retirement income planning.

"Living Off Your Money - The Modern Mechanics of Investing During Retirement with Stocks and Bonds", 2015, by Michael McClung.  Although not a financial professional, Mr. McClung has thoroughly researched retirement income planning and has run the system he developed through exhaustive testing against historical market data. He explains all this in great detail in the book, which is intended as a do-it-yourself guide. Unfortunately, the companion website which provides some of the ongoing data needed to do it yourself has disappeared.

"Pensionize Your Nest Egg - How to Use Product Allocation to Create a Guaranteed Income for Life", 2nd edition, 2015, by Moshe Milevsky , Professor of Finance, and Alexandra MacQueen, Certified Financial Planner.

Wendy,

Also, you said "I have 37 years of cash assets to fund living."

Have you factored in future inflation (a big unknown)?

Wendy,

You are asking the right questions. If you have a financial planner, they can do a "Monte Carlo" analysis. This is a simulation that tests whether you will outlive your money under various best and worst-case scenarios. It then gives you the probability of outliving your money. Nobody can guarantee future events, but prudent choices can minimize risks.

It's not just financial risk you want to consider. Put bluntly, you are probably choosing your final home and the community of friends who will witness your final years. You probably want to be surrounded by those who delight in your company and want you to thrive. You are intentionally picking that community. Bloom where you are planted, but pick good soil. NaCCRA's home page features links to a consumer guide and other materials that will help you choose well. In addition to attractive amenities, financial stability, and good location, you want to be sensitive to the vibe of the community you invest yourself in.

Richmond Shreve

NaCCRA Board Member & VP

Forum Moderator