Sand Hill's Chief Investment Officer, Brenda Vingiello, CFA, joins Jenny Harrington on “Halftime Report” to go over their most recent portfolio moves. Brenda's commentary begins
Exploring Options for Retirement Living
Published Date : April 24, 2019
You moved to Silicon Valley to pursue career opportunities and then stayed to raise your family. You are now a retired empty nester who has enjoyed clement weather, diverse cultural experiences, superior medical care, and are contemplating how to spend the next chapter of your life. With so many retirement community options available in the area, you can continue to enjoy all that you have come to value. So when is the optimal time to transition from homeownership to some type of retirement community? What factors should you consider?
From a financial standpoint, after years of robust market growth and interest rates expected to rise, it may be a good time to sell the family home, which for most of us in Silicon Valley is our biggest asset. If you are a couple and have the means, you may wish to delay a sale until the first spouse passes away to take advantage of stepped-up cost basis. With such a historically strong rental market, you may choose to use rental income to cover some of the expenses.
There may be valid personal reasons to make the transition at this time as well. Perhaps you are alone and desire companionship. You are ready to be unburdened by the cooking, cleaning, and yardwork required by homeownership or struggle to perform daily activities. Perhaps you want to give your children peace of mind by removing the possibility that they may be responsible for your daily well-being. Are you missing out on pursuing your passions because they are at night and you no longer feel comfortable driving in the dark? Most offer extras such as lectures, cultural events, workshops, exercise classes, and other amenities focused on enriching one’s lifestyle located on the premises.
From a practical aspect, don’t wait. Even if you are not quite ready to make the move, take time to find out what is available in your community. If you need to choose quickly, your first choice may very well not be available. Do not wait until an unforeseen health crisis forces you to make a decision that may not be ideal. Even a small injury or fall can derail aging in place at home. Many of the most desirable facilities have long waiting lists, so expect to spend six months to two years on a wait list for a high-quality option. While you wait, take this time to get ready by downsizing and managing the logistical and emotional challenges.
Fortunately, there are many options available so you can select a choice that is best for your lifestyle. If you are active, healthy, and able to live on your own, an independent living community may be ideal. Assisted living communities are a great choice for seniors who value their independence but require some assistance with daily activities. If you are seeking a long-term approach where you can age in place and receive a continuum of care in the same location, a Continuing Care Retirement Community (CCRC) may be the answer.
Generally, CCRCs require prospective residents to enter in good health and be able to live independently. If you wait too long to apply and your health deteriorates, your housing options will shrink. Many communities reject applicants suffering from serious health conditions like cancer, Alzheimer’s, and heart failure.
Of course, cost will play a significant role in determining which option is best for you. Some facilities have substantial entrance fees depending on the unit and may or may not be refunded, while monthly fees on the Peninsula can range from $3,000 to over $10,000. Prior to starting your search, or considering the sale or rental of your home, we encourage you to meet with your Sand Hill Wealth Manager to determine a budget and plan for the most optimal living scenario in your golden years.
Articles and Commentary
Information provided in written articles are for informational purposes only and should not be considered investment advice. There is a risk of loss from investments in securities, including the risk of loss of principal. The information contained herein reflects Sand Hill Global Advisors' (“SHGA”) views as of the date of publication. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. SHGA does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. SHGA has obtained the information provided herein from various third party sources believed to be reliable but such information is not guaranteed. Certain links in this site connect to other websites maintained by third parties over whom SHGA has no control. SHGA makes no representations as to the accuracy or any other aspect of information contained in other Web Sites. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. SHGA is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of SHGA.
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All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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