It is seemingly inevitable, according to leading economic and financial experts, that our nation is heading for a recession in 2023 as the economy reportedly gets worse. World Bank, one of the world’s largest sources of funding and knowledge for developing countries, also warned of a looming global recession. The only question now it seems, how bad will it get and how can you safeguard your financial assets?
Fortunately, there’s a retirement option to protect your investments, save money, and alleviate some anxiety about the uncertainty of today’s erratic economic climate. Financial advisers concerned about an impeding recession strongly encourage baby boomers to seriously consider moving into a continuing care retirement community, while they still can.
Why now and not later? Here are four major reasons why moving into a CCRC makes financial sense right now before a recession.
1. Inflation soared in 2022 to a level unseen in four decades!
Remember the high prices, gas rationing and economic crisis of the 1970s? That is the last time we have seen inflation hit record numbers as it did in 2022. By moving to a continuing care retirement community, residents don’t have to worry about rising food prices, skyrocketing electricity and water bills, and added expenses like cable TV increases, or the rising costs of home repairs and other services.
“I literally pay only two bills, my cell phone and Acts monthly fee,” said Diane Brown, a resident of Buckingham’s Choice. “No more utility bills, and no surprisingly higher month-to-month charges.”
“I don’t have to arrange for snow removal or lawn maintenance either. Everything is included in my monthly fee. It’s so easy to manage,” she added.
For Ted Villafana, a resident of St. Andrews Estates, constant home repairs was his breaking point. “I had just finished paying 5,000 for a new air conditioning unit. The real estate taxes, insurance, the pool, lawn care, electricity, water… our roof would need replacing soon. It got to the point where I said, enough is enough.”
The option of dining at a variety of restaurants on Acts campuses, access to fitness centers with professional trainers, wellness and brain health programs specifically beneficial to older adults, entertainment and social events are also conveniently and economically included in one predictable monthly fee.
“We used to go out to restaurants 3-4 times a week and that could be a small fortune now,” Ted said. “We love going to dinner [at our Acts community] with the friends we’ve made here, enjoy great food and entertainment. I think in terms of what you get for the money and how much you save.”
2. Medical costs are skyrocketing, even outpacing inflation.
The cost of long term care may vary geographically yet it’s still rising faster than the rate of inflation. In 2023, the projected average annual cost of a nursing home is nearly $122,000, compared to $65,000 annually in 2004.
Read more about the cost of long term care and how adult children are urged to plan ahead
Since 2000, medical costs have also risen each year by 4.85 percent, and sadly medical costs are ranked the No. 1 cause of bankruptcies in the United States. All it takes is one unexpected health crisis to deliver a devastating blow to families.
By moving into a continuing care retirement community, you have access to Acts Life Care, which ensures future care is prearranged at today’s dollars in one predictable monthly fee. If your medical needs should change, your monthly fee will never increase soley on level of care. Assisted living and skilled care is also conveniently located on the same campus. Acts residents also enjoy tax advantages because both its entrance fee and monthly fees can be eligible for tax deductions as a prepaid medical expense.
3. Higher home repair costs and a declining housing market.
With the current housing market in flux, financial advisers say now is the time to get the best price for your home and it’s not worth the risk to wait. Just this week, the Federal Reserve announced it is raising interest rates yet again, which could potentially slow down the housing market further.
Another key indication of a recession, residential construction spending is drastically down since last spring. According to Reuters, “residential investment has contracted for six straight quarters, the longest such stretch since the housing market collapse in 2006.”
If you’re considering selling your home to downsize, time is of the essence as home prices are still relatively high and the listing days relatively short. By selling now, you won’t be at the mercy of a volatile market threatened by expensive borrowing rates.
Still not ready to sell? Check out our article on housing market trends in your region
Inflation is also hitting homeowners with higher costs of home repairs. Thumbtack, a modern home management platform, found the average cost to care for a single-family home has risen 9.3 percent in the past 12 months due to labor and material shortages. Depending on how old your home is, you may be forced to keep up with frequent and extensive repairs. Then there is the exorbitant cost of remodeling your home to “age in place,” installing ramps and lowering countertops, could mean thousands of dollars in upgrades to maintain your independence.
Living at an Acts community, all home maintenance and repairs are included in your monthly fee. No more all the hassle of dealing with contractors and venders! Just ask Clinton Pettus, a resident of Bayleigh Chase. His air conditioning unit stopped working last summer, at the worst possible time, over a holiday weekend.
“We put in a work order and before noon that day, the house was cool again,” Clinton said, “If we were not living here, it may take several days to get a repair person to come on a holiday weekend.”
Many Acts residents joke about being so spoiled by Acts’ diligent maintenance crews that they don’t even have to change a lightbulb!
4. As a not-for-profit, Acts continually invests in its communities.
Another key indication of a recession is a declining number of construction projects and real estate development projects. Financial experts who firmly predict a 2023 recession, point to building permits for future construction projects which plummeted for a record 12-straight months.
Fortunately, Acts is one of the nation’s largest not-for-profit operators of continuing care retirement communities, backed by more than 50 years of excellence in the senior living industry. As a not-for-profit, Acts is mission-driven and prioritizes the quality of life for our residents instead of making a profit for shareholders. Acts has a reputation of strength and stability and continually invests in its communities to attract the next generation of seniors. There are several active campus renovations and expansion projects across its 26 campuses. While some businesses are pulling back on future construction, Acts is consistently modernizing its active resort-like communities to adapt to the needs and desires of today’s retirees.
While the turbulent economy and a possible recession are worrisome for many, by moving into an Acts community, residents take comfort in knowing all their future needs will be taken care of, so they can spend less time worry and more time living!