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10 Ways to Get Americans Spending Again
Tweet Share on Facebook July 29, 2011 Comment (5)Despite years of near-zero interest rates and government stimulus programs, American consumers have not recovered their spending appetites. They are still reeling from big mortgage and other debts, facing stagnant wages and long-term unemployment, and desperately seeking reasons to once again believe in the American Dream.
[See 10 Smart Ways to Improve Your Budget.]
Since consumer spending is responsible for more than two-thirds of U.S. economic activity, employers are reluctant to hire people until they see more demand. So while corporate profits continue to soar, those trillions of booked earnings stay on the sidelines while economic growth sputters.
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How to Cut Your Drug Costs
Tweet Share on Facebook July 28, 2011 Comment (5)Drug price inflation seems impervious to market forces, even during this very weak recovery. So it makes sense to do a thorough review of your drug costs at least once a year. Next year's Medicare coverage decisions seem far, far away but that annual renewal or, for first-timers, initial election period, will be here before you know it.
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7 Lifestyle Behaviors Linked to Alzheimer's
Tweet Share on Facebook July 27, 2011 Comment (1)Taking good care of yourself has always been at the top of my list as the best retirement investment. Out-of-pocket health expenses are the biggest and most uncertain drain on our retirement nest eggs. Diet and exercise thus can yield enormous financial and quality-of-life returns.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
I'm back to beat this drum again, following last week's report that Alzheimer's disease may be heavily linked to preventable lifestyle factors, mostly involving health issues. Research released at an international Alzheimer's conference in Paris found that seven risk factors may contribute to as many as three million cases of Alzheimer's in the United States. The operative word here is "may"—more about that later.
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6 Likely Social Security Changes
Tweet Share on Facebook July 25, 2011 Comment (27)Washington's current soap opera, As the Debt Ceiling Turns, is winding down to its season finale. Grand plans for a "big deal," including changes to Social Security and Medicare, have given way to face-saving efforts to permit the country to issue new debt and still allow the political parties to claim the high ground as they gear up for 2012 election campaigns.
[See 10 Ways to Boost Your Social Security Checks.]
So, for the time being, retirees can breathe a bit easier about changes to their key benefits. Even though nearly every "reform" plan said it would avoid changes for people at or even nearing retirement age, the only good entitlements plan for senior advocacy groups was a dead entitlements plan. It looks like they will get their wish. For now.
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Do We All Live in Central Falls?
Tweet Share on Facebook July 22, 2011 Comment (2)Central Falls in Rhode Island may be a "City with a Bright Future" as the town's website proclaims. But it doesn't have such a bright present, hitting such a rough patch that its finances have been taken over by a state-appointed receiver. Without enough money to pay its bills, the receiver is now seeking big cutbacks in pensions for retired Central Falls police and firemen.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
Some retirees would be asked for haircuts approaching 50 percent of their pension. We're not talking about cushy deals that have outraged taxpayers in other parts of the country. According to public records obtained by The Providence Journal, the biggest payment among the town's 140 pensioners is slightly more than $52,000 a year. It goes to the widow of the town fire chief, who passed away last year after nearly 40 years at the department. Also, retirees never participated in Social Security taxes and thus are not entitled to its benefits.
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Retirement Woes May Be Exaggerated
Tweet Share on Facebook July 20, 2011 Comment (1)Study after study has found that Americans save too little for retirement, make bad investment choices, and underestimate retirement expenses for healthcare and other items. However, two economists and aging experts at the Rand Corp. say a detailed review of the actual financial resources and spending practices of people age 66 to 69 produces a more optimistic portrait.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
"Our main finding is that a substantial majority, about 71 percent of those just past the usual retirement age, are adequately prepared for retirement," said Michael D. Hurd and Susann Rohwedder in their study "Economic Preparation for Retirement." Hurd is director of the Center for the Study of Aging at Rand, a nonprofit research firm based in Santa Monica, Calif. Rohwedder is associate director of the center.
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5 Predatory Money Pitches to Watch Out For
Tweet Share on Facebook July 18, 2011 CommentThe stubborn continuation of tough economic times has made it likely that you'll be exposed to bottom-feeding merchants aiming take advantage of you with offers of "help." They live in late-night TV ads, Internet promotions, and elsewhere. All too often, their gain comes at your expense, and they are particularly aggressive in exploiting seniors.
[See 10 Smart Ways to Improve Your Budget.]
Be vigilant and careful about responding to offers. Do not give out personal information to vendors you do not know or trust. Make sure your computer is protected so that you don't inadvertently provide personal information you'll later regret.
Don't be silent if you've been targeted by a scam merchant. Get in touch with your local or state consumer protection agency. Find out if your local Better Business Bureau (BBB) knows anything about the company or the offer that's been pitched to you. Share your concerns with trusted friends on social networks, so the word gets out. Turning on the lights freezes cockroaches, and shedding light on bad business practices has the same effect.
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10 Tips for Caring for Aging Parents
Tweet Share on Facebook July 18, 2011 Comment (11)Caring for an aging parent may be the highest calling of your life. But it also can rob you of time, money, and your own experiences. In some cases, these personal sacrifices can create bitterness and regret, causing ill will toward the very people you love and have pledged to help.
MetLife's aging and retirement research unit, the Mature Market Institute (MMI), measured the financial costs and sacrifices of family caregiving in a study released last month. More recently, it used those findings to create recommendations for how family members might cope with the financial stresses of caregiving.
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Understanding a Key Tax Break at Senior Communities
Tweet Share on Facebook July 15, 2011 Comment (4)Seniors may qualify for hefty tax breaks if they move into a retirement community that offers assisted living and skilled nursing support as part of what are considered lifetime-care benefits. If their children or other family members provide major financial support for entrance fees and monthly expenses, they might also be eligible for tax deductions.
[See 10 Ways Your Home Can Pay You Money.]
Many seniors and their families are not aware of this tax benefit, according to Jerry Grant, executive vice president and chief financial officer of ACTS Retirement-Life Communities. ACTS is based north of Philadelphia and operates 23 continuing care retirement communities in eight eastern and southern states. But he says virtually all ACTS residents use the benefit once it's explained to them.
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Social Security Statements Remain Unavailable
Tweet Share on Facebook July 13, 2011 Comment (4)The Social Security Administration's decision to end paper statements summarizing people's Social Security benefits has been criticized by the government's chief watchdog agency. Consumers badly need more information about the program, not less, the Government Accountability Office (GAO) concluded. It added that widely publicized proposals to reform the program will make it even more important for the public to get accurate information to use in adapting retirement plans.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
Last March, the Social Security Administration (SSA) stopped sending out paper versions of "Your Social Security Statement," an annual report based on a person's actual work history and projected Social Security benefits. This paper statement is the SSA's primary outreach communication. It is particularly important in helping people near retirement make decisions about when to begin claiming Social Security benefits.
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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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