Before you make such an important commitment and sign up for a retirement community, do your homework.
Check the books. A retirement community must have financial statements showing assets, liabilities, and net income. These statements should be audited by a reputable professional. Deal breaker: If a community won’t show you its current financials, walk away.
Go to a pro. After you have the financial statements from a community you’re considering, hire an accountant or an attorney lawyer to evaluate them.
Insight: It’s worth paying a few hundred dollars in professional fees for some assurance the community won’t go bankrupt after you’ve moved in.
Read (and re-read) the contract. Before making any payment, make sure you know exactly what you’ll be paying and what you’ll be receiving in return. Don’t be reluctant to question any provisions that are unclear. You need to pay particular attention to the contractual provisions covering health care because that’s one of the main reasons for moving into a community.
Nursing hours. Some communities will have a registered nurse on-premises at all times while others have a nurse only 9-5 on weekdays. If there are gaps, find out what backup services are provided.
Hospital service. Look for written assurance that a community has arrangements with a nearby hospital or clinic for medical situations that require a physician rather than a registered nurse. The more prominent the medical center, the better.
Nursing home access. If you eventually need custodial care, will you be placed in the community’s own nursing facilities or in a nearby home? Are there enough nursing beds to serve all those who need care?
What happens if there’s a shortage? If a married couple lives in a community, what extra costs will be involved if one spouse needs nursing care while the other remains in their former residence?
Get answers to these questions before you pay any entrance fees.
