Thursday, July 01, 2010

Should people consider paying large entrance fees when moving into retirement communities?

Some assisted living centers and retirement communities have relatively large entrance fees, which can be $100000 to $200000 or so. In some cases the monthly rent is somewhat less, however, and partial refunds, based on the number of months of residency, are possible if the resident either moves out or passes away.

A good example is provided by the Goodwin House in northern Virginia, with link to the financial options page here. It talks about a “declining formula” but it appears that the resident and family actually have a financial incentive for the person to live longer, which sounds like a morally good thing.

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