- Sell your home: This will give you a lump sum amount that can be used to pay for years of continuing care and the convenience of aging in place. Since you only make monthly payments, most of what you get from your home sale can be invested to earn returns.
- Bridge loans: Age or illness-related frailties may necessitate moving into a CCRC before your home sells. In such situations, a bridge loan can help pay for your care. Some lenders specialize in bridge loans for seniors and pay the retirement community directly. Once your home is sold, you can pay off the bridge loan. The remaining amount is yours to pay for your care and/or invest.
- Reverse mortgage: Seniors typically use this form of financing to fund continuing care when there is a spouse or other family members still living in the home. It pays you a specified amount each month on the condition that the full amount will be paid back when the owner moves or dies. Reverse mortgages are relatively easy to qualify for if you are over 62 years and have home equity. Also, there are no monthly loan payments to make.
- Renting your home: If you are not ready to sell your home because it is not an ideal market or you simply want to retain it, renting it out is a great option. The rent can be used to pay for living in a CCRC and any remaining mortgage payments.
- Estate sale: If you are selling your home to move into a CCRC, you may be tempted to put valuable items such as antiques, art, and paintings in storage till they can be sorted out. Having an estate sale relieves your loved ones of the responsibility of doing that and provides you with cash. It will also save you the cost of storage.
- Family agreement: If children or other family members are willing to help cover the cost of your care, a written family agreement can ensure they are reimbursed from the proceeds of an estate sale. Make sure your care needs and each one’s contribution is properly documented to avoid future problems.
- Crowdfunding: If you do not mind seeking outside help, crowdfunding can help raise money to pay for your continuing care. Fundraising sites like GoFundMe allow you to set up a page with your story, where you can set a fundraising goal, and request donations from anyone who wants to help. These sites typically charge a percentage of the donations, usually around 5% of the total you raise, as a user fee.
How Will I Pay for My Stay in a Continuing Care Retirement Community?
How Will I Pay for My Stay in a Continuing Care Retirement Community?
You can work all your life to build a retirement nest egg, yet come up short when it comes to long-term care. A Continuing Care Retirement Community (CCRC) offers safety, security, and peace of mind. You can continue to live an independent life and have the support that you need when age or illness slow you down. While it is an ideal option when maintaining a home becomes overwhelming, many seniors worry about how they will pay for a CCRC. Our experts show you some simple ways to obtain the funds you require.
Financial Planning and Ways to Pay for Continuing Care