My biggest retirement mistake: delaying move to retirement housing | members only

WHAT THE PRO SAYS While the Bunnells came to regret renting for so long, doing so at first made sense in their situation, says Sherry Finkel Murphy, a certified financial planner in Saratoga

Springs, New York, and founder of Madrina Molly, a financial education company focused on women over 50.  Finkel Murphy says renting a smaller place can be an emotionally important step in

downsizing. It buys you time to figure out the next step after the “heavy lifting” of getting rid of your old place, she says, and alleviates the pressure of trying to quickly decide if a

particular house or neighborhood is right for you in the long run. If the next step is a CCRC, as it was for the Bunnells, understand the financial complications. With a traditional home

purchase, you (or your heirs) can profit from selling if you no longer want or need the property. With a CCRC, there is no equity; the money you put down is an entrance fee to buy into the

community and gain access to its different services and housing levels. In some communities, residents can get a partial refund if they change their mind and decide to move out. The

refundable amount typically decreases the longer you stay, and the fee becomes nonrefundable at some point. “It’s all in the fine print,” says Finkel Murphy. “I did have a client who

decided, after buying into a continuous-care facility, that she wanted to be closer to family, and went through the effort of undoing it so that she could be in a rental, independent-living

arrangement,” Finkel Murphy adds. The client lost money, “but at least she was a stone’s throw from her daughter and family.” Deb and Paul’s $173,650 fee was relatively low (CCRC entrance

fees average around $400,000 and can reach into the low seven figures, according to _U.S. News & World Report_), and it’s refundable at a 76 percent rate if they move out of the

community before entering assisted living. If they go into assisted living, the money is put in escrow, and assisted-living fees are deducted monthly (by $3,900 if one of them makes the

move; $5,500 if both do). Before deciding whether to live in a CCRC, read the contract carefully, and try a rental unit first if the community offers them, Finkel Murphy advises. Throwing

away a few months of rent to see if you like the place may save you throwing away a lot more if you buy in prematurely and then change your mind.