It was such a pleasure meeting all of you at November’s Moving Expo! All of us felt the energy and excitement in the air! As you prepare for your move to The Outlook at Windhaven, you and your financial advisors may be evaluating how to best fund your Entry Fee and monthly service fees. As a senior-focused division of a Federal Savings Bank in business since 1889, and having personally helped retirees for over 25 years with this decision, I share a checklist of things to consider that can be helpful in your financial decision-making process!

At the end, we also share a link to a downloadable Guide on how to Fund Your Entry Fee. Many Life Plan Community residents and their financial advisors tell us it is quite helpful in their financial deliberations.

Step 1: Take inventory of your financial accounts.

It sounds simple, yet sometimes this first step is the most important. By writing down all of your retirement accounts along with their balances on a single sheet of paper, you have a clear starting point you can frequently refer back to! Pilots are famous for their checklists before takeoff, so you’ll be in good company!

Step 2: Consider the tax impact of withdrawals.

As one future resident shared with me at the Moving Expo, “My home is my ‘Entry’ to The Outlook at Windhaven!” And often, that is indeed the case! But if you need to fund your Entry Fee before you have sold your home, you may be considering withdrawals from any one of the many retirement accounts you had opened in years past. As you enjoy life in The Outlook at Windhaven, you may also be wondering how much to withdraw annually from each account. If so, it is important to review the tax impact with your advisors before you make any withdrawals.

We created a handy list of all retirement accounts and questions to consider before making any withdrawals at secondact.com/lifeplan. We encourage you to visit that page, identify which accounts you may hold, and review our suggested questions you and your advisors may want to consider before making any withdrawals.

Step 3: A clean, well-staged home commands a higher price.

You may be planning to have your home sold before making the move, with the cash from your sale proceeds standing ready to fund your Entry Fee for a smooth move forward! Or you may want to move into your new home first, get settled in a bit, and have time to sell your home. It is often easier to prepare, stage and list your home if you are not living in it. A well-staged home inside and out frequently attracts a higher price and even multiple offers. By working with one of the many real estate professionals you met at your Moving Expo, you can enjoy a smooth transition from one home to the next! We encourage you to begin your planning early if you haven’t started already!

Step 4: Review your additional funding options.

During the Moving Expo, another future resident shared with me, “I really want to move into the community first and sell my home afterward. I don’t want strangers coming in and out of my home while I’m still living in it.” Like her, many of you inquired as to how to fund your Entry Fee so you can move into The Outlook at Windhaven first, and have time to stage and list your home so you can command the highest possible price. In addition to retirement account withdrawals, you may have other options at your disposal without realizing it. Options such as:

1. A Home Equity Line of Credit Especially for Senior Living such as the one offered by us at Second Act. It can act as a financial bridge, a bridge loan in essence. You can take advantage of your home equity by obtaining a line of credit on it to fund your Entry Fee and enjoy taking the time you need to sell your home for the highest possible price. Thousands of seniors across the USA take advantage of bridge financing to lock in their chosen units now, enabling them to move forward with financial confidence and peace of mind!
2. Sale of Securities: If you own many different types of securities and have purchased them at different points in your life, their cost basis may differ. Deciding which securities to sell should be reviewed by a capable tax or financial professional.
3. Securities Loan: Another future resident shared with me, “I have been debating if I should take out your home equity line of credit or take out a loan against my securities. What do you think I should do?” After speaking with this gentleman, it felt to me that a line of credit against his securities may actually be the best option for his specific situation. I encouraged him to speak with his financial advisor on whether or not to pursue this option.
4. Sale of a Life Insurance Policy: Many people do not know that their life insurance is a financial asset, just like the stocks and bonds you own. If you have a life insurance policy you may no longer need, you could consider selling it, frequently referred to as a “Life Settlement.” We can help connect you to buyers of policies should you wish to explore this option.
5. Long-Term Care Insurance Claims: If you are moving into your new home with a spouse who needs a little support, you may be wondering how to successfully file a claim. We can help.

Depending on your personal situation, any of the above options could be a solution so you can move first and have time to sell your home. Because of our unique expertise in retirement living options and banking, at Second Act Financial Services, we serve as a Financial Solutions Office for The Outlook at Windhaven. We can review the many options at your disposal with you and your advisors.

Visit secondact.com/theoutlook to make an appointment with Karen Nelson for a financial conversation! And for a helpful discussion on all your Entry Fee funding options listed below, download our Funding Guide by clicking here! See you on moving day!