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Evaluating Longevity Calculators
Tweet Share on Facebook March 11, 2009 Comment (4)Want to feel like a god? Go online and use a life-expectancy calculator. Your answers to health, family history, and lifestyle questions can either add or subtract lots of years from your life--all at the click of your mouse.
The calculators are not authoritative and don't claim to be, particularly for those with serious pre-existing medical conditions. However, they're indicative of where your life is headed, at least in terms of longevity. That's important because nearly every investment and retirement expert emphasizes that most people greatly underestimate how long they will live. As a result, their retirement plans--which are already modest for starters--fall woefully short of providing them retirement income for the rest of their lives.
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Boomerater™ Report: Check Credit of Potential Tenants
Tweet Share on Facebook March 9, 2009 CommentThe Boomerater™ Report is our weekly collaboration with Boomerater. Boomerater is an online resource that help baby boomers make informed life decisions, covering topics such as finding financial advisors and senior housing 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 advice and first-hand perspectives. This week, we explore the topic of having a boss who is a lot younger than you. Go to Boomerater.com to share your thoughts, and in the next report, we will feature some of the best responses.
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Housing Bust Deals a Cruel Blow to Older Homeowners
Tweet Share on Facebook March 9, 2009 Comment (7)Home foreclosures, sub-prime loans, and underwater mortgages have understandably dominated concerns about the collapse of the housing market. Yet plunging home values have also triggered equally devastating consequences for the retirement hopes of millions of older homeowners. Perhaps even more than falling retirement-plan investments, 30 percent to 40 percent drops in housing values are destroying the very foundations of retirement for people who did all the right things and played by the rules. Dean Baker, founder and co-director of the Center for Economic and Policy Research (CEPR), spoke to largely closed ears and minds as far back as 2002, when he warned of an imminent housing collapse. He has since turned his attention to the impact of that collapse on older Americans.
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Is a New Retirement Account in Our Future?
Tweet Share on Facebook March 4, 2009 Comment (5)Retirement security is a painful oxymoron to millions of older Americans. According to estimates from Dean Baker, co-director of the Center for Economic and Policy Research, we have lost $15 trillion in wealth from the declining values of our investments and our homes. No stimulus package can bring that back anytime soon.
However, committees in the House and Senate have already begun the process of looking for better retirement solutions. They are joined by think tanks and financial trade associations. Expect to see lots of summits called, and much circling of wagons. We will be witnesses to an extended reassessment of whether or not the private sector is to be trusted with our money. Heck, it goes beyond that. Consumers are on trial as well. Can we even be trusted to take good of our own money? -
Boomerater™ Report: Taking Car Keys from Parents
Tweet Share on Facebook March 2, 2009 Comment (14)The Boomerater™ Report is our weekly collaboration with Boomerater. Boomerater is the online resource for Baby Boomers offering advice on areas such as financial planning and finding a job. 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 where we are looking to hear your thoughts and first-hand perspectives. Last week, we asked readers for advice on taking car keys away from parents. Here are a few of the responses:
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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:
