Continuing Care Retirement Community – Magnolia Trace, Alabama

In this episode, we interview Brad Breeding the Co-Founder and CEO of MyLifeSite.net which is the premier website for all kinds of information about CCRCs.

Just a ton of free information for consumers, advisors, even communities. Like the Consumer Guide To Evaluating CCCs, which I highly encourage everyone to get. It’s free folks!  Get it here.

Brad and I discuss the history of CCRC’s. The issues they face if they are a not-for profit. And, most importantly, the viability of CCRCs with an aging population. How do you price the fees accordingly to make sure you are well-capitalized to take on the risks inherent with providing long term care?

The first thing Brad recommends to anyone considering a CCRC is to see if they have an agreement with an actuarial company that provides analysis. If the CCRC does not, how exactly are they pricing future costs?

That is a critical, maybe the most critical, factor to consider when it comes to choosing a CCRC. Will they be there when you need them most?

The Long Term Care Insurance industry shined a light on what can happen if longevity risk is mis-priced.  Try buying a policy today from Penn Treaty or Genworth. Not going to happen.  Market mistakes cost those companies dearly.

So, you want to make sure the same thing doesn’t happen to you, especially given this is probably the biggest expense you’ll ever make.

Do your research.  Seek help in your analysis if you need.  But whatever you do, don’t just read the glossy sales brochure.  You need to dive in deeper than that. Mylifesite.net is THE place to start.

Continuing Care Retirement Communities can be found in every area of the United States.

In this video we analyze the Magnolia Trace CCRC in Huntsville, Alabama.

There are five different options plus a one year “look in” of sorts where you can try the community out without putting down an entrance fee.

Magnolia Trace Pricing

I’ll share with you the current pricing for their Royale I and II. THis is a 1572 sq. foot 2 bedroom unit with a den. We’re also assuming a couple is moving in. The monthly fee is includes a lot of utilities with one chef prepared meal a day. (You need to see what else comes with the fee or is missing).

Life Care Premium: Entrance fee $315,000 – $340,000 monthly fee $4670

Asset Preservation: $250,000 – $275,000 / $5250

Income Preservation $ 365,000 – $400,000 / $4360

Life Care 50 (you get a 50% refund to your estate)
$440,000 – $475,000 / $5100

Now the one I like best is the Modified Life Care where if you have.

 

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