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5 Ways to Cover Independent Living Costs in Durham, North Carolina

April 1, 2024

close up of senior woman hand putting coin into piggy bank

Moving into an independent living community is a complex and often emotionally charged process. It’s a significant life event, and navigating the transition can be challenging. Beyond the emotional aspects, the financial implications of moving into independent living in Durham, North Carolina, can be a deciding factor for many individuals.

At Bartlett Reserve, we understand this can be an overwhelming journey, and we are determined to help you find practical financial pathways when it comes to covering independent living costs. The earlier you start, the more flexible and cost-effective your financial routes will be. However, it’s never too late to begin. Our team is sharing five strategies to consider during this process.

1. Rent or Sell Your Home 

Your home is most likely one of your most significant assets, and many individuals find that selling their home provides substantial funds to cover independent living costs. However, some people may not be ready to fully part with a house that they have lived in for most, if not all, of their adult life. If this is the case, renting out your home could be the next best option. Doing so can provide you with a steady monthly income you can use to pay for independent living.

2. Use Social Security and Pensions

If you draw Social Security or receive a pension, these forms of regular income can help you pay for independent living. However, withdrawing your funds can be complex, so speaking with a financial advisor can provide clarity and help reduce tax implications.

3. Tap into Life Insurance Policies

Life insurance is often considered a tool just for leaving an inheritance, but you can use your policy to cover independent living costs. There are a variety of ways to leverage your policy, including selling it outright, exchanging the policy for its cash value, taking a loan from the policy, or simply withdrawing funds. 

Some life insurance policies allow withdrawals, providing a financial cushion without necessarily terminating the policy altogether. Your specific policy will determine how you can leverage it to pay for independent living, so be sure to read it thoroughly and speak with an expert for advice.

4. Identify Hidden Assets

It’s not uncommon for individuals to overlook certain assets or benefits they’re entitled to. Conducting a thorough audit of your financial portfolio can reveal utility rebates or tax breaks, unclaimed money, or discretionary spending cuts. By keeping an eye on these details, you could uncover resources that contribute to a robust financial plan for independent living.

5. Utilizing Personal Savings 

Your personal savings and retirement accounts can play a significant part in covering independent living costs. Pulling from a 401(k), Roth IRA, or other account can be a great help in providing additional income. However, there are restrictions on how you can access your funds, so be sure to speak to a financial advisor to create a plan that maximizes your assets.

At Bartlett Reserve, we are here to support you through every step of your retirement journey, ensuring that the transition into independent living is not just a financial process but a journey that helps you create a joyful and fulfilling lifestyle.

Bartlett Reserve is more than a place to live. Our independent living services in Durham, North Carolina, foster a sense of belonging and a community where residents and team members look out for one another like a close-knit family.

If you would like to learn more about our community, independent living services, or pricing, we invite you to visit our website or reach out to a member of our dedicated team to schedule a personalized tour.