“All CCRCs are not created alike.” When I speak to groups about choosing a CCRC this is always one of the first things I say. Let me tell you what I mean.

Did you know that there are five main types of CCRC contracts offered among various communities? It is important to understand which type of contract is best for you personally and financially. 

I can’t tell you how many times I have heard that someone chose a particular community because a friend went there or because it had, for instance, and indoor swimming pool, without ever taking the time to really understand the various types of contracts out there and which one is best for them.

Understanding the differences between the various types of CCRC contracts and how each would fit your particular situation will help you make a more informed and suitable decision.

Choosing a CCRC is a decision that cannot easily be unwound. Make sure that your First Choice is the Right Choice!

www.carolinacontinuingcare.com

Since the time that the U. S. Senate Special Committee on Aging released their Investigative Report on CCRC’s there have been a number of articles in the national media giving rise to issues that retirees need to consider before moving into such a community. These are issues we have been talking about with our clients for quite some time. Most of the articles recommend that prospective residents take the contract to their attorney, CPA, or financial advisor to be reviewed. While this certainly isn’t a bad step to take the simple fact may be that beyond reviewing the document the advisor may not have any real knowledge about the industry in general or the types of things to specifically look for or questions to ask. You don’t want to pay a lot of money to an advisor just for them to say, “It looks like a standard contract to me.” It is important to be sure any advisor you use has an in-depth understanding of the industry, as well as the both the pros and cons of choosing a CCRC.

At Carolina Continuing Care Consultants we have studied the CCRC industry extensively and are aware of the pitfalls, risks, and special types of situations that prospective residents need to be aware. We bring the pertinent information to one central location and to serve as an objective resource for guidance.

Yahoo News: Carolina Continuing Care Consultants’ President, Brad Breeding, quoted in Kiplinger Magazine of Personal Finance. Click Here: Yahoo News Press Release

In the wake of the Senate Hearing on CCRC’s articles continue to come out weekly about the importance of making sure you understand the details before entering a CCRC. (This is what we have been saying!) These communities are wonderful places and the residents we talk to are very happy. We recently heard a new resident of a local CCRC tell us that she felt “liberated.” But, as we have been saying for quite some time- and as the Senate Special Committee on Aging is starting to recognize- there are some risk involved and prospective residents need to be aware of what they are. Here is a link to a recent article on NewJerseyNews Room.Com: Retirement Communities: Baby Boomers Should Go Slowly

We at Carolina Continuing Care Consultants have done the research. We have asked the questions you need to ask. We have compared financial statements of the area communities. Using this information we are prepared to serve as YOUR resource for in-depth and objective information about CCRC’s and other retirement communities.

This past month the U.S. Senate Special Committee on Aging held a hearing called “Continuing Care Retirement Communities: Secure Retirement of Risky Investment.” During this hearing Senator Franken (D-MN) said, “…but it’s critical that seniors have access to all the information they need to decide whether a CCRC is right for them.” Here is a link to video of the full hearing: http://www.aging.senate.gov/

Great new article out in Kiplingers September issue about the latest in CCRC’s: “On Sale: Retirement Havens.” I was honored to have been quoted in the article, which you can read here.

Choosing a CCRC or other retirement community is a big decision. At Carolina Continuing Care Consultants we are here to help by reducing time, effort, and confusion and providing you with the tools to make the best decision!

In my conversations with people about Continuing Care Retirement Communities it often becomes apparent to rather quickly that many people are not entirely clear on the difference between a CCRC and an assisted living community or other type of long-term care facility. Therefore I thought a quick post to address the confusion might be helpful.

The main thing that distinguishes a CCRC from other types of long-term care communities is that a CCRC embraces the “continuum of care” concept. This means that ta person will typically enter a CCRC while still healthy and active and, in exchange for a fee, will be guaranteed by the community that the appropriate level of care will be provided in the future as the resident’s lifestyle and care needs change.

A non-CCRC community will often provide the sames levels of care but without a guarantee that the care will be available to you and without accepting pre-payment for future care needs.

CCRC’s are a viable retirement option for “Baby Boomers.” There are several things that have changed the face of retirement communities over the years and have helped to create a growing demand for CCRC’s. For more information, see our recent article in the December 2009 issue of Raleigh’s Midtown Magazine: http://www.carolinacontinuingcare.com/inc/files/editor/files/Midtown.pdf

There is a nice article in today’s issue of the Raleigh-based News and Observer, written by David Bracken, that presents a clear and concise explanation of the development progress being made by a couple of the new CCRC’s in the Raleigh-Cary region. (http://www.newsobserver.com/business/story/233786.html?story_link=email_msg) The article speaks briefly to the requirements that the state of North Carolina has in place for non-profit versus for-profit CCRC’s, as it relates to percentage of units that must be under contract before construction can begin. It also talks a little bit about how debt service for development will be covered, which is a very important aspect when considering the mid-long term financial stability of a community. Finally, Mr. Bracken mentions the refund options offered by the communities. Refund options are a big selling point for many CCRC’s but may not always be the right choice. Everyone’s situation is different and it is important to consider different aspects before determining if a if a refund option is best for you. For more information visit our website at www.carolinacontinuingcare.com or send us an email at info@carolinacontinuingcare.com.

People often wonder where to turn for information about Continuing Care Retirement Communities. There are many resources but the problem is getting below the surface level stuff. Gathering information will only help so much because what is right for one person may not be right for another person. Like any other big decision in life, it really comes down gaining an understanding of the issues and then planning appropriately. You have to be able to sort through the maze of details and apply them to your unique situation. Simply visiting communities and reading marketing materials does not constitute proper planning. It is important to understand the details and contracts, and how they vary from one community to another, and begin real planning to determine which type of community is ultimately best for you and your family.  At Carolina Continuing Care Planning we use our depth of knowledge and research to help people plan appropriately.

People often ask me, “What is the best way to compare CCRC’s?” Since this appears to be a popular question I think the answer merits a post on this blog.

First and foremost, it is extremely difficult to use a single formula or measure to compare CCRC’s. For example, the contracts, fee structures, amenities, health care, and financials can differ drastically from one community to another. In fact, many communities offer multiple contracts and fee structures to choose from within their own community so this makes an apples-to-apples comparison among different continuing care retirement communities even more difficult.

Let’s suppose for a minute that it was possible to prepare a side-by-side comparison that somehow incorporates all of the details of the different CCRC’s. Until you understand all of the specifics, and more importantly, how the specifics would apply to your personal situation, it wouldn’t be very helpful and could actually cause more harm than good.

Therefore, I recommend that you begin the CCRC research process not with a comparison of the communities but, instead, with a personal analysis of what you most desire out of a community. In other words, the process must begin with you! For instance, what do you most desire out of a community? Close your eyes and visualize it? Also ask what you DO NOT desire out of a community. These two questions alone can go a long ways. There are many other questions you need to ask of yourself before you will begin to paint a picture in your mind of the type of community that would be best for you.

Next, you will need to have a clear understanding of the inner workings of  contracts, fee structures, refund options, insurance, and the financial stability of the communities. This is an education process and is critical to choosing the right community.

Once you narrow it down to a few communities then you can begin to focus in on the communities. I wouldn’t describe this so much as a comparison as I would an in-depth analysis of each retirement community individually.  I have developed a four part process for my clients that will walk them through the important details of this stage.

In summary, choosing a CCRC is a very significant lifestyle and financial commitment. It is important to make sure your first choice of a community is the right choice. As with any other important life decision, there is an in-depth planning process that should be followed and the process must start with you.