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More Seniors Opting for Nontraditional Retirement Communities
Tweet Share on Facebook February 27, 2009 Comment (6)Years ago, as people approached retirement, they thought about where they wanted to live out their days. They most likely consulted with friends and family, and then decided to either stay put or move to a retirement community. Maybe they had a great pension plan that opened up a new world of places to live and travel. And for a period, warm-weather locations were the great draw. Remember when the Sun Belt was a new phrase, or when Phoenix was known mainly as the title city in a Glen Campbell song? When people flocked to those areas, they were thinking of retirements of perhaps 10 or 15 years.
Today, retirement has evolved into a complex balance of leisure, work, volunteerism, family, and travel. People still prefer to stay in their own homes as long as they're able. But those homes are likely to be anywhere these days. And the idea of remaining in comfortable homes, in familiar communities, and near family and friends has, over time, acquired the formal name of Aging in Place. As the number of people in their 60s, 70s, and 80s continue to grow at much faster rates than the overall population, you can expect Aging in Place to become a much bigger deal.
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Why Roads Are Becoming a Friendlier Place for Older Drivers
Tweet Share on Facebook February 25, 2009 Comment (1)Driving is a freedom that can grow in perceived value as people age. Retirement can mean reduced schedules; aching bodies may limit physical activities; and living on fixed incomes may curb travel, restaurant meals, and other treats. But being able to get behind the wheel of a car reinforces our independence and ability to chart our own course. As we age, our driving skills deteriorate along with our eyesight and physical reaction times. However, we do a good job of compensating. According to statistics gathered by AAA, drivers over the age of 65:
- Kill fewer motorists and pedestrians than drivers in any other age group
- Have the lowest crash involvement rates per licensed driver
- Have the lowest crash involvement rates involving alcohol impairment
- Have the highest seat belt use among adults
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Boomerater™ Report: Bartering to Save Cash
Tweet Share on Facebook February 23, 2009 Comment (29)The Boomerater™ Report is our weekly collaboration with Boomerater.com. Boomerater is the online resource for Baby Boomers offering information on topics such as finding financial planners and assisted living facilities. In each report, we feature a selection of helpful tips from Boomerater’s collection of financial, consumer, and lifestyle content.
We also post a question of the week for which we are looking to hear your thoughts and first-hand perspectives. Last week, we asked readers what bartering deals they recommend to conserve cash. Here are a few of the responses:
A. I started by swapping my landscaping services with members of my church (we publish a list of anyone willing to barter services.) I also tried Craigslist but didn't see anything in my area I wanted to trade for. ITEX is a more flexible alternative. You sell a product or service and get ITEX virtual dollars in your account. Then you can use those dollars to buy another product or service from an ITEX member. I have traded landscaping for computer services and have gotten new clients in the process. The only drawback is they charge a 6 percent fee to both parties in the deal.
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A Guide to Roth IRA Conversions
Tweet Share on Facebook February 20, 2009 Comment (30)Converting the balances of your IRAs, 401(k) rollovers and other qualified retirement plans into Roth IRAs will become much more attractive next year because of changes in federal rules. Still, such conversions should be carefully considered by investors. It's not too early to begin planning for this process.
As a refresher, traditional IRAs are funded with pre-tax dollars and defer taxes on investment gains. When funds are withdrawn from the account, they are taxed as ordinary income. Roth IRAs, by contrast, are funded with post-tax dollars but they allow investment earnings to avoid taxes when the funds are withdrawn from the account. Roth IRAs don't make sense in pre-tax investment accounts and they can't be opened by taxpayers making more than $169,000 (joint returns) or $116,000 (separate returns). Furthermore, conversions of traditional retirement funds into Roth IRAs have not been permitted for households with annual incomes above $100,000.
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7 Steps to Finding the Right Credit Counselor
Tweet Share on Facebook February 18, 2009 CommentI don't know about you, but the collapse of the economy and stock market has made my financial plan look a lot like a piece of Swiss cheese that has seen better days - yellowing, curling up at the edges, and definitely giving off a bad odor. Sadly, millions of us seem to be facing Swiss-cheese financial futures these days.
If you're in that camp, perhaps a trip to your friendly neighborhood consumer credit counselor would be a good idea. Having someone other than your Uncle Lou take a look at your finances could be a godsend. A good counselor has seen lots of people like you before, and has developed solid suggestions on how you can overcome your current problems - and perhaps a wee bit of financial paralysis. A counselor can help you build a new financial plan that reflects current economic realities and is right for you. Finding the right counselor may be far easier said than done. Here are some steps to help increase your odds of sitting across the table from someone who just might make your life a lot easier:
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Boomerater™ Report: Favorite Brain Games
Tweet Share on Facebook February 17, 2009 Comment (2)The Boomerater™ Report is our weekly collaboration with Boomerater.com, the online Q&A website for Baby Boomers. In each report, we will feature a selection of helpful tips and advice from Boomerater’s collection of financial, consumer, and lifestyle content.
We also post a question of the week in which we're looking to hear your thoughts and first-hand perspectives. Last week we asked readers to tell us about their favorite brain games. We had many great responses and here are some of them:
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A Dozen Tips for Older Taxpayers
Tweet Share on Facebook February 13, 2009 Comment (18)Although the government's stimulus program will provide tax relief in 2009, older taxpayers won't get any breaks on their 2008 returns. And after a year of wrenching losses on investments and falling home prices, the memory of 2008 may be particularly bitter at tax time. Still, the goal remains to pay as little tax as possible, so U.S. News asked H&R Block tax expert Gil Charney, principal tax researcher at the company's Tax Institute, some of this year's commonly asked tax questions. Topics include IRAs and 401(k)s, Social Security, Medicare drugs, estate taxes, long-term care insurance, home deductions, charitable contributions and divorce.
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4 Tips for Investing in Your Physical Wealth
Tweet Share on Facebook February 11, 2009 Comment (16)Getting healthy—and staying that way—is the best physical and financial insurance. Invest a dollar in better health today, and your future returns (in the form of lower health-care expenses) could far exceed earnings from stocks and bonds.
Concerns about future health-care expenses top the list of older Americans’ financial worries. According to the Employee Benefit Research Institute (EBRI), a husband and wife turning 65 in 2010 will, on average, need $376,000 for health expenses not covered by Medicare. That figure excludes long-term care expenses. The problem with averages is that individuals are not average: “While 50 percent of men turning age 65 in 2008 will live to age 81, and 50 percent of women will live to age 84, 25 percent can be expected to live until ages 87 and 90, respectively,” EBRI says. “Furthermore, one in 10 men currently age 65 can expect to live until 91, while one in 10 women can expect to live to 95.”
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Boomerater™ Report: Good Thoughts for Bad Times
Tweet Share on Facebook February 9, 2009 Comment (9)The Boomerater™ Report is our weekly collaboration with Boomerater.com, the online Q&A Website for Baby Boomers. In each report, we will feature a selection of helpful tips and advice from Boomerater’s collection of financial, consumer, and lifestyle content.
We also post a question of the week. Last week we asked readers for their feelings on the current economic crisis, and what positives may come out of the situation. Here are a few of the responses:
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The New Rules of Reverse Mortgages
Tweet Share on Facebook February 9, 2009 Comment (17)Reverse mortgages allow qualified borrowers to tap the equity in their home, pay off their existing mortgage balance--and all the while live in their home as long as they're able. Now, recent changes in a federal loan program may make reverse mortgages attractive to millions more senior homeowners by raising the dollar value of homes that qualify for the program and extending it to the purchase of new homes. The federal program allows consumers to pay a one-time insurance premium, which guarantees that they'll receive the stream of income they are promised when executing the reverse mortgage. With retiree nest eggs hurt by declining investments and continuing weakness in home values, backers of the program see it as an increasingly attractive way for cash-strapped seniors to remain in their homes while receiving income from the properties. However, reverse mortgages sold without the federal guarantee have created image problems for the industry in the past. Even with federal involvement, the products are still complex and carry high fees, which is why it's important for consumers to understand what they're getting. Here are some things to carefully consider when deciding if a reverse mortgage is right for you.
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The Best Life
Philip Moeller, contributing editor for U.S. News Money, writes about achieving success and happiness in older age. He also is a research fellow at the Sloan Center on Aging & Work at Boston College.
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