5 Smart Money Moves Before Entering a Retirement Community
Moving into a retirement community is a big decision, one that comes with a major lifestyle shift—financially, emotionally, and socially. It often means leaving a longtime home, adjusting to a new routine, and planning for future care needs.
Think of this as a fresh start, with fewer maintenance headaches and more time for the things and people you love. But to truly enjoy it, you’ll want to make sure your money is just as ready for the move as you are.
To give you a head start, we talked with a few financial experts and identified five smart financial steps every retiree should consider before settling into a continuing care or assisted living community.
Stay tuned until the end to make sure this change will be a life improvement.
1. Get Liquid
Let’s start with a truth that hits hard once you start shopping around for retirement communities: care is not cheap. According to Genworth’s 2024 Cost of Care Survey, the median monthly cost of assisted living in the U.S. is $5,900.
This is why liquidity is key. You may have built a solid portfolio over the years, but if most of it is tied up in real estate, long-term CDs, or stocks you’d rather not sell during a dip, you could find yourself “asset rich and cash poor.”
Consider meeting with a financial advisor to assess your portfolio’s balance between growth and accessibility. Think about shifting some funds into stable, liquid vehicles like money market accounts or short-term bonds. That way, you’ll have quick access to cash for monthly fees, unexpected health costs, or even a spontaneous weekend getaway.
2. Review (and Update) Your Estate Plan
Life moves fast, and estate documents should keep up. Before you enter a retirement community, make sure your estate plan reflects your current wishes and circumstances.
This includes:
- A valid will (with updated beneficiaries)
- A durable power of attorney for financial decisions
- A healthcare proxy or advance directive
- And, if relevant, any trusts you’ve created
Outdated documents can lead to confusion, legal trouble, or even conflict among family members. The last thing you want is a drawn-out probate mess over something as simple as an old bank account or life insurance policy.
3. Evaluate and Simplify Investment Portfolios
By the time you're planning a move into a retirement community, your investment strategy should shift from growth mode to preservation and income.
Start by consolidating scattered accounts. Managing five different IRAs and a brokerage account might have been fine at 55, but at 75, simplicity is your friend. Fewer accounts mean fewer statements, fewer tax surprises, and less stress.
Next, consider adjusting your risk exposure. Your portfolio should lean toward safer, income-generating assets, such as bonds, dividend-paying stocks, or annuities.
Pro Tip: Tangible assets like gold coins help hedge against inflation, so they’re worth considering. If you’re not sure how to choose which gold coins to invest in, seek professional advice.
4. Reassess Insurance Coverage
Your insurance also needs some updates. For instance, you should check with your provider to see if it covers the type of facility you’re moving into. Also, make sure the coverage limits and daily benefit amounts have kept pace with the rising cost of care.
Next, look at your life insurance. If your kids are financially independent and your debts are minimal, you might be able to reduce or repurpose your policy. And don’t forget homeowners' or renters' insurance. If you’re selling your home and moving into a facility, you’ll likely need a completely different policy focused on covering your personal belongings.
5. Talk It Out with Family (and a Pro)
Before you move, have an honest discussion with your adult children or trusted loved ones. Share your plans and wishes and how they can support you, whether that’s as a health care proxy, financial power of attorney, or just someone who knows where the important papers are.
This move helps you avoid confusion, prevent future conflict, and ensure your wishes are understood and respected. It also clarifies your loved ones' roles and prepares them to support you in emergencies. Open conversations now reduce stress later and build trust when it matters most.
Throughout this transition, you should also have access to professional advice. A financial advisor, elder law attorney, or care transition planner can provide clarity, confirm your decisions, and help you avoid mistakes that are expensive to fix later.
In Summary
A move to a retirement community is more than a change of address—it’s a chance to step into a new chapter with clarity and confidence. By taking these smart financial steps now, you’re protecting your assets and peace of mind.
Plan ahead, keep it simple, and don’t be afraid to ask for help. You’ve worked hard to get here. Now it’s time to make sure your money works just as hard for you.