Entrance Fee

DEFINITION of 'Entrance Fee'

A term that can refer to any charge for admission. However, it is commonly used in reference to continuing-care retirement communities (CCRCs). Rather than purchase a unit in a CCRC, residents typically pay a high entrance fee and monthly payments. The entrance fee is paid in exchange for services provided at the CCRC, such as nursing care throughout the lifetime of the resident.

BREAKING DOWN 'Entrance Fee'

In terms of investment, the longer you live the more services you use up and, therefore, you make better use of the entrance fee. There are many financial, legal and medical issues to consider when choosing a CCRC. It is recommended that residents, their families and/or professional advisors research a prospective CCRC thoroughly before the entrance fee commitment is made.

RELATED TERMS
  1. Continuing Care Retirement Community

    A residential facility providing meals, healthcare and social ...
  2. Nursing Home Resident Trust Fund

    An account in a nursing home that helps residents manage finances ...
  3. Transaction Risk

    The exchange rate risk associated with the time delay between ...
  4. Exchange Fees

    A type of investment fee that some mutual funds charge to shareholders ...
  5. Service Charge

    A type of fee charged to cover services related to the primary ...
  6. Clearing Fee

    A fee charged by a clearing house for its services. A clearing ...
Related Articles
  1. Financial Advisor

    How to Find a Continuing Care Retirement Community

    A look at how financial advisors can help older clients find the right continuing care retirement community.
  2. Financial Advisor

    The Tax Benefits of Continuing Care Communities

    Continuing care retirement communities may be a viable option for some as they age. They also offer these tax benefits.
  3. Retirement

    How to Find the Right Retirement Community

    You're going to be spending a lot of time there, so invest time and thought into which retirement community you pick – before you invest your money.
  4. Retirement

    Are Fees Eating Up Your Nest Egg?

    You may not be able to avoid all fees associated with retirement planning, but you should know what you’re being charged for. Here's a list of common fees.
  5. Retirement

    Are Fees Depleting Your Retirement Savings?  

    Each retirement account will have a fee associated with it. The key is to lower these fees as much as possible to maximize your return.
  6. ETFs & Mutual Funds

    A Guide To Investor Fees

    Fees are one of the most important determinants of investment performance and something that every investor should know.
  7. Retirement

    5 Ways to Protect Pensions from Nursing Homes

    How to safeguard a patient's funds from shady or unscrupulous staffers.
  8. Managing Wealth

    Things Nursing Homes Are Not Allowed to Do

    What rights do a home's residents have? The same ones they they had before they entered the facility.
  9. Investing

    How a 1% Annual Fee Can Ruin Your Nest Egg

    What kind of impact does an annual 1% fee have on your portfolio? The answer may surprise you.
  10. Financial Advisor

    How To Optimize Your Portfolio and Reduce Fees

    Investment fees aren't avoidable altogether, but there are strategies investors can employ to keep those fees at bay and reduce the impact on returns.
RELATED FAQS
  1. Are continuing care retirement communities accredited?

    Learn about the accreditation requirements for continuing care retirement communities (CCRCs) versus the requirements for ... Read Answer >>
  2. What fees can I expect from a financial adviser?

  3. As an investor can I take a management fee?

    I have invested in one business - about 200k USD as capital amount. Can I take management fees on my capital amount? Company ... Read Answer >>
  4. What kinds of fees are involved in futures trading?

    Learn what the various costs are that are charged by brokerage firms and trading exchanges to individual futures trading ... Read Answer >>
  5. If I haven't realized capital gains from selling a primary residence in the last ...

    My husband and I owned a home, sold it in 2013, and now we are considering buying a home but are uncertain of whether we ... Read Answer >>
  6. Where do I look for fees that I am charged on investments? What are those fees called?

    The fees and expenses charged for investments vary. The fees usually depend on the type of investment and the investment ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center