Thinking of Moving

[redduck]

We are thinking about moving into an Adult Community in maybe two years. So far, we’ve visited one of the Villages. However, the residents were rather old and infirm and the place itself was not cheerful or modern (sounds way too much like me). The fees were approximately $6000 a month (total for the two of us) and we get two meals a day. That means I’d have to scrounge around for my other four meals.

The other place we visited was like a new five-star hotel. Very modern, well-lit, great swimming pool, nice gym, nice exercise room. Also has a bar with several TV’s and has huge TV screen in a theater-like room. This place is located in a terrific area;--very pretty with walking paths. The area has security, restaurants, a Whole Foods, etc. The people living there seemed very happy and energetic.

We each would get a $300 dining room allowance per month. Valet parking only—but no tipping. All for $6000 for two. The $6000 will increase by approximately 5% every year.

However, for the privilege of living there you need to put up $1M. When you leave (for whatever reason) they will return $900,000.

We plan to keep looking, but the second place is so enticing. In truth, we wish we never saw the second place.

Any thoughts?

 

[braumeister]

Do you really think you would qualify to live in an adult community?

 

[HFWR]

Can’t manage those costs, but maybe there’s a nice overpass nearby...

 

[brucethebroker]

I am curious. What guarantee do you have of getting the 900k back? Is the management co. (or whoever) bonded? Are you issued an equity position? 900k is some serious cash.

 

[Sunset]

So the second place cost is $6,000 per month + ~$5,000 per month (missed investment earnings from $1M) + (the $100,000 so we could be optimistic and call it over 20 yrs , so an extra $416 per month)
The monthly total at best of the second place is: $11,416

Not quite so cheap as the first place.

 

[redduck]

Do you really think you would qualify to live in an adult community?

It's not what I think, it's what the Adult Community Board thinks. But, to answer your question, "Probably not."

Can’t manage those costs, but maybe there’s a nice overpass nearby...

Yes, there's a very nice overpass a few mile away. You get a brand-new Montgomery Ward Refrigerator carton and $80 in coupons to El Pollo Loco all for $300,000 up front and $660 a month. Valet parking is included.

I am curious. What guarantee do you have of getting the 900k back? Is the management co. (or whoever) bonded? Are you issued an equity position? 900k is some serious cash.

I asked about that. She didn't give me a full answer and I didn't pursue it as we were in a group and were just checking the place out. I would need to know a lot more about the finances (or someone representing me would need to know a lot more).

So the second place cost is $6,000 per month + ~$5,000 per month (missed investment earnings from $1M) + (the $100,000 so we could be optimistic and call it over 20 yrs , so an extra $416 per month)
The monthly total at best of the second place is: $11,416

Not quite so cheap as the first place.

Yes, that's a lot of money not making me a lot of money.

 

[RunningBum]

What sunset said about that opportunity cost of tying up $1M. On a smaller note, how far would that $300 go toward meals for that month?

 

[aja8888]

We are in our mid 70's and living in our own paid for home in a 55+ community. We pay $185 per month for lawn and trash service, fence and sprinkler repairs, tree trimming, etc. We eat out often. I'm keeping our $1 MM for other things.

When things get so bad I can't drive or go to the bathroom on my own, then things will change.

I'd go nuts if I had everything done for me and had to go to a dining room daily.

Think about an alternative to high priced lockup.

 

[joeea]

Any thoughts?

Sounds like a nice place.

Sounds expensive. And it gets expensiver every year (5% a year for how many years? Yikes!) How many bedrooms do you get for that?

What kind of assets and budget do you have?

 

[redduck]

What sunset said about that opportunity cost of tying up $1M. On a smaller note, how far would that $300 go toward meals for that month?

You can buy complete dinners there for about $9-12. Breakfasts I think run about $6-7. The residents told us the food was quite good (and, I would think this is a demanding crowd). Top-end dinners cost about $16.

 

[braumeister]

The other place we visited was like a new five-star hotel. Very modern, well-lit, great swimming pool, nice gym, nice exercise room. Also has a bar with several TV’s and has huge TV screen in a theater-like room. This place is located in a terrific area;--very pretty with walking paths. The area has security, restaurants, a Whole Foods, etc. The people living there seemed very happy and energetic.
...
place is so enticing.

Not having seen the place, I don't think I would be interested, but from your description you obviously are very attracted to the place. This is one of those individual things, where it's right for some but not for others. I think only you can make the decision. Opinions from the rest of us won't really count for that much.

I'll make one comment: considering the cost involved, I would want to be very sure it's right for me. Is there some kind of option where you can spend a few days there on a trial basis?

 

[CaliKid]

I have a close relative who moved to a place like the second one you describe. It has been absolutely incredible for them. High level food and high level service. Well worth the money. If you can afford it I'd go for the nicer one.

 

[Moemg]

We plan to keep looking, but the second place is so enticing. In truth, we wish we never saw the second place.

Any thoughts?

Keep Looking!

 

[joeea]

You can buy complete dinners there for about $9-12. Breakfasts I think run about $6-7. The residents told us the food was quite good (and, I would think this is a demanding crowd). Top-end dinners cost about $16.

With a $300/month allowance, I see a lot of purchases at the Whole Foods in your future...

Better get an Amazon Prime credit card.

 

[redduck]

We are in our mid 70's and living in our own paid for home in a 55+ community.I'd go nuts if I had everything done for me and had to go to a dining room daily.

Think about an alternative to high priced lockup.

Well, we are still looking and not in a big hurry. We could probably move to a place like Texas and have a nice home in a 55+ community (I know I would qualify), but then we would be far away from our families (who interesting enough volunteered to move us and all our stuff to any place that was two time zones away from them).

You don't have to go to a dining room daily. You can eat on your patio, on their patio (nice view) or in your room. But if you don't eat in the dining room, you'll miss out on the food fights. I hear if you miss out on the ten best food fights of the year...

Sounds like a nice place.

Sounds expensive. And it gets expensiver every year (5% a year for how many years? Yikes!)

What kind of assets and budget do you have?

What kind of budget Hey, I just got serious about putting together an asset allocation.

 

[Bamaman]

We put my mother in such a place. We paid just over $200k security deposit for a 1 bedroom apartment and the $2050 rent included 20 meals monthly in the nicest restaurant I have ever seen. The chef was Dutch and the nightly meals elaborate.

If you later get sick, they have a step up assisted living unit. And when you need full nursing home care, they have that too.

After my mother suddenly passed, we got back 90% of the security deposit. Obviously the security deposit is to guarantee (1) high class tenants and (2) nobody spends all their money and sticks the landlord with whatever Medicaid pays.

 

[joeea]

What kind of budget Hey, I just got serious about putting together an asset allocation.

Uhm, okay. Two years away and you can't estimate a budget?

You know the saying that goes "If you have to ask how much, you can't afford it."...

 

[walkinwood]

Why are you considering an adult community like this one? health, finances? Just curious. I'd appreciate knowing if you feel comfortable sharing. Tx.

 

[W2R]

Keep Looking!

+1000

You can do better, for less.

 

[redduck]

We put my mother in such a place. We paid just over $200k security deposit for a 1 bedroom apartment and the $2050 rent included 20 meals monthly in the nicest restaurant I have ever seen...

If you later get sick, they have a step up assisted living unit. And when you need full nursing home care, they have that too...

Pretty much the same deal here, but we were looking at two bedrooms and smallish-den. Sounds like your mom's place was equally as nice as this one, but homes/rentals and 55+Communities are outrageously expensive in Los Angeles.

 

[redduck]

I have a close relative who moved to a place like the second one you describe. It has been absolutely incredible for them. High level food and high level service. Well worth the money. If you can afford it I'd go for the nicer one.

Thanks, CaliKid...
It's interesting, at least for me, that this is the first time I actually cared big-time about making money in the stock market. Maybe I should say it this way: making money in the stock market has much more meaning now than it ever has before. Something like that. Anyhow, there are lots of other choices of where to live and we have some time to figure it out.

 

[redduck]

... I think only you can make the decision. Opinions from the rest of us won't really count for that much.

Yes, but opinions, thoughts and experiences of others can factor in the decision.

I'll make one comment: considering the cost involved, I would want to be very sure it's right for me. Is there some kind of option where you can spend a few days there on a trial basis?

Hey, braumeister, it's me, redduck...remember!!! Just how do you feel I would do on a trial basis? What they do is, they invite you back for meals and activities. They also have an expert(?) in helping you downsize your home. Additionally, they will connect you with a real estate agent if you need one. I would doubt they have a trial basis program set up--sounds like it would be too risky for them.

 

[redduck]

Why are you considering an adult community like this one? health, finances? Just curious. I'd appreciate knowing if you feel comfortable sharing. Tx.

Sure. I can share a bit. We, The Duchess of redduck and I are 74. We live in, not an isolated area, but in an area that's sort of a pain to get to and get out of--nothing is far away, but nothing is close, either. It's also in a fire area. Health is sort of OK for both of us, but I can see if one of us gets sick, this is not the house (as per location) to get sick in. The house is also becoming too big (actually, it is the same size as always), but we are shrinking.
Finances are OK, we never paid much attention to them. The Duchess records every penny she spends, but doesn't go any further with the information. We never had a budget. We have no debt.

Why an adult community like this one?: Not sure. We are just thinking about it and wondering if it's doable. Since I am not a DIY guy, it is appealing. And, a place like this frees up a lot of your time--but, at a financial price. It does have a good feel to it. We shall see.

 

[aja8888]

Sure. I can share a bit. We, The Duchess of redduck and I are 74. We live in, not an isolated area, but in an area that's sort of a pain to get to and get out of--nothing is far away, but nothing is close, either. It's also in a fire area. Health is sort of OK for both of us, but I can see if one of us gets sick, this is not the house (as per location) to get sick in. The house is also becoming too big (actually, it is the same size as always), but we are shrinking.
Finances are OK, we never paid much attention to them. The Duchess records every penny she spends, but doesn't go any further with the information. We never had a budget. We have no debt.

Why an adult community like this one?: Not sure. We are just thinking about it and wondering if it's doable. Since I am not a DIY guy, it is appealing. And, a place like this frees up a lot of your time--but, at a financial price. It does have a good feel to it. We shall see.

I can see how my comments earlier were a bit different than your needs now that we have more information. We are the same ages and my DW is very handicapped and I am a total DIY guy and very healthy. I spend a good deal of the day helping her with daily tasks, although this is diminishing a bit. We are ONE MILE from three major hospitals and a new MD Anderson Cancer facility (actually, the MDA is 1/2 mile away.

Our 2000 sq ft one level house is in a reasonably priced 55+ neighborhood (430 homes). The selling prices of these homes is about $120/sq ft and they are all built with the latest features for handicapped people.

With our situation, we would not opt to move into a costly facility where I would feel shut in and not able to work on my 1971 Super Beetle or other car I am restoring at the time. A place like you mention would be good for DW, but not for me. And the cost would be pretty high, even for this reasonably priced area of the country.

I can't really give you any good advice, except shop this move real hard. Those buy in numbers scare me.

 

[Yarnstormer]

We put my mother in such a place. We paid just over $200k security deposit for a 1 bedroom apartment and the $2050 rent included 20 meals monthly in the nicest restaurant I have ever seen. The chef was Dutch and the nightly meals elaborate.

If you later get sick, they have a step up assisted living unit. And when you need full nursing home care, they have that too.

After my mother suddenly passed, we got back 90% of the security deposit. Obviously the security deposit is to guarantee (1) high class tenants and (2) nobody spends all their money and sticks the landlord with whatever Medicaid pays.

This sounds like about what my Mom’s retirement home was. (Georgia)
Her buy in was less but it was a good while ago. When she passed her buy in was not returned - I think she opted for lower rent or something like that. She was there a long time so it worked out.

I would hate the socialization and dining room but she seemed pretty happy with it except for the “mean girls” and they are everywhere!
We still had to hire sitters in the end to keep her entertained and not falling as she would try to walk when she could not. There were not enough caregivers imo in the nursing unit. Great place to be old, not so great a place to be sick. Mom should have replaced her knees to preserve her mobility but she was hard headed.

You never saw so much food waste in your life. Mom took back leftovers from every meal so “two” meals a day was more than adequate.