4 Strategies for Financing Your Move to a Life Plan Community

Financial Planning   |   By HumanGood

The benefits of moving into an all-inclusive senior living community are myriad: more opportunities to build and nurture meaningful relationships, better health, greater independence, a maintenance-free lifestyle and more time to focus on whatever you love most.

With a HumanGood community, you’ll gain access to a range of amenities that are sometimes not as easy to get at home: a fitness center, housekeeping services, cultural and educational programs, exceptional dining and even that bit of help you may someday need. 

How are you going to finance all of this, and how can you make the most of your budget? Here are our top tips. 


1. Prepare to Finance Your Move to a Life Plan Community

Moving means you'll likely save money over time, but the initial upfront expenses can seem like a lot. Some strategies to finance the transition include: 

  • Get your home ready to sell so you can extract the most possible value. 

  • Speak to a financial advisor about how best to structure your savings and investments to make the most of your move. 

  • Make a budget and stick to it. If you’re spending a lot on entertainment and services at home, you might find that you actually save money once you move. Factoring little luxuries, presents and other items into your budget can help you ensure you always have enough.

  • Get clear about Social Security and other benefits. If you’re newly retired, you might not know how much you’ll earn from your pension, Social Security and other investments. Spend a day or two gathering all the relevant documents and getting clear answers to retirement benefit questions. If you have any questions, you can contact the Social Security Administration office at 1-(800) 772-1213.  


2. Know How to Choose a Medicare Plan 

Medicare is one of the great benefits of turning 65. But, as with any other health insurance, it’s important to choose the right plan for your needs. Some tips to get it right include: 

  • Know when to begin shopping. You can buy your plan for the three months prior to the month you turn 65 through the three months after.

  • Be mindful of penalties. You may have to pay an ongoing penalty — a permanent rise in the price of Medicare — if you don’t enroll during the enrollment period. 

  • Choose highly rated plans. Medicare provides ratings for each plan. Choose a five-star plan if one is available, and never choose one with fewer than four stars. 

  • Read the coverage documents carefully. Different plans offer different services. Ensure the services you use the most have full coverage. 

  • Compare the benefits of Part D. Medicare Part D offers prescription drug coverage and some other services. 


3. Enjoy the Ease of Travel

Almost everyone wants to travel in retirement, and with a thoughtful financial approach, you don’t have to scale back. Better still, many of our residents say that community living empowers more travel because they know their homes are safe and secure. There’s no need to worry about lawn maintenance or a housesitter, and however long you’re gone, you can be confident that you'll return to friends and neighbors who are glad to see you. 

Some tips for getting the best bang for your travel buck:

  • Plan longer trips. You can often get a discount by staying for a full week or longer. 

  • Go with a group. Split the costs and multiply the fun. 

  • Look into AARP, USAA and AAA discounts. 

  • Go during the offseason to enjoy fewer crowds and significant savings. 


4. Make the Most of Your Assets 

You’ve worked hard your entire life, and you deserve to enjoy what you've built. Don’t fall into the trap of feeling like you have to scrimp and save every penny because of an uncertain future. If you’ve saved enough, you can often spend a bit and still have financial security. It’s all about making the most of your assets. 

Some important strategies include: 

  • Schedule annual meetings with a financial planner — ideally a third-party fiduciary — to assess the balance of your investments and weigh what, if anything, needs to change. 

  • If you’re still working — even part time or earning a hobby income — consider how much of the income to put back into savings. 

  • Take advantage of the many tax breaks available to seniors, which include a larger standard deduction, Medicare premium deduction and deductions for health expenses. If you’re concerned about your tax liability, work with a tax advisor now to build a financially responsible plan. 

HumanGood communities free your time so you can focus on living your best life, whether that’s spending more time with family and friends, volunteering, enjoying your hobbies or traveling. Financial worries don’t have to be a part of that lifestyle with a little planning.

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