Thursday, July 31, 2014

Investigate Exchange Rates Before Moving Overseas

This blog has covered a number of wonderful places to retire overseas, including Thailand, Mexico, South America and Europe.  Some retirees choose to move overseas because they feel it will be less expensive than living in the United States.  Others have made the choice because they are attracted to the lifestyle in a certain region.

While I have covered international retirement destinations as diverse as San Miguel de Allende, Mexico, small towns in Panama, Hua Hin, Thailand, and the east coast of Italy, one of the subjects that I have not mentioned is the need to consider fluctuations in the exchange rates when you investigate where you can afford to live.

It recently came to my attention that many people from the United Kingdom who retired to France, Spain and Greece about a decade ago are moving back to their homeland because the pound has weakened dramatically against the Euro.

One of the articles I read about the British ex-pats who are wanting to return home said that 39% of Brits in Greece and 34% of those in Spain are trying to sell their properties, often at a large loss,  because property values have dropped in both of these countries, as well as in France.

Of course, lower property values are not a concern for ex-patriots who are extremely wealthy, which I discovered when I read a blog post on ExpatForum.com about the situation in Spain.  While ex-pats in some areas are suffering, those living in the more affluent areas of Europe seem to be doing just fine.

While the largest issues I found involved citizens of the United Kingdom who moved to the continent of Europe 10 to 12 years ago, Americans need to think about this risk as well if they decide to move to another country.  It is important for ex-patriots to leave some room in their budget for fluctuations in the currency.

For example, if you and your spouse have a combined income from Social Security of $2500 to $3000 a month (about average) and you plan a lifestyle that requires you to use all of it every month, what happens if the exchange rate fluctuates even a modest 10 percent? Would you be able to stay in your new country, or would you have to pack up and return to the United States?  Do you have enough savings to weather a temporary fluctuation?

Of course, fluctuations in the exchange rate can go the other way, too.  It is possible that there will be some years when the dollar will rise against foreign currencies and you will find that you can indulge yourself a little, eat out more frequently, and travel occasionally because the exchange rate is working in your favor.  The problem is that there is no way to predict the future.

Bottom line:  If you want to insure yourself of a comfortable retirement in another country, make sure you leave room in your budget for monetary fluctuations and put aside a little nest egg to get you through the tough times.  At the very least, you will retire overseas with a bit more peace of mind.

If you are looking for more information about retiring overseas, or other retirement topics, use the tabs at the top of this page for links to hundreds of other articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Sources:

Now They Want to Come Home! British Ex-pats Flee the Continent to Get Away from Eurozone Turmoil

Hello Fellow ex-Pats in Spain - How is the Recession Affecting Your Area?

Photo credit:  en.www.wikipedia.com/commons

Wednesday, July 23, 2014

Financial Survival for Retirees

Many of the Baby Boomers I know are still working, even some of those who are well past the age of 65.  Among our friends, I know of several salesmen, a doctor, several business owners, some lawyers, an engineer, an insurance broker, a number of financial planners and many other people in a variety of occupations who are continuing to work as long as they can because they do not want to face the possible lifestyle change that could occur if they stop working.

As a result, I frequently expose my readers to a variety of approaches to retirement planning that will help people assure themselves that they will not outlive their retirement savings ... one of the biggest fears of the Baby Boomer generation.

On one hand, it is exciting to know that many of us will live 20 to 30 years after we retire, or even longer.  For some of us, however, it is also frightening, especially if we do not feel we have adequately prepared for retirement.

As a result, I recently reviewed the short book, "The Baby Boomers Retirement Survival Guide" by Certified Financial Planner Rich Paul, for the online magazine Squidoo.  You can read my full review here:

http://www.squidoo.com/book-review-the-baby-boomers-retirement-survival-guide

In his book, he discusses important investment strategies that Baby Boomers will want to understand, especially if they plan to invest and manage their own savings, while assuring themselves that their money will last the rest of their lives.  For example, he talks about the importance of asset reallocation and balancing your portfolio so that too much of it does not end up in one risky investment.

One of the things I like about this book is that it is written in easy-to-understand language that clearly explains things in a way that is helpful to both the novice and the experienced investor.

Since most Baby Boomers have only saved a modest amount towards their retirement, and they want to make sure their money lasts as long as possible, it is important that we all understand how to make wise investment decisions that limit our risk.

Rich Paul's book is one that is very useful for anyone who plans to manage their own retirement funds.  It is also a valuable resource for someone who is letting professionals manage their money, since they need to understand whether or not the experts are doing a good job.  Far too many people have turned all their assets over to someone else to handle, only to be disappointed at the results.

In addition to this book, if you are trying to learn how to handle your retirement savings, you will want to use the Retirement Money tab at the top of this blog to find links to dozens of other articles about investment strategies that are recommended by other well-known investors and investment advisers.

You will also find links to hundreds of other retirement articles by using the other tabs at the top of this blog.

There is no single approach to retirement that is right for everyone.  It is extremely important that you do your research, explore your options, and then follow the plan that seems right for you.

You are reading from the blog:  http://www.baby-boomer-retirement.blogspot.com

Photo credit:  Photo of book cover is courtesy of www.amazon.com

Wednesday, July 16, 2014

Gavilan for Retirees in Rancho Mission Viejo, California

With the incredible number of Baby Boomers who are reaching age 65 (approximately 10,000 a DAY), the need for retirement housing is immense and growing larger all the time.  Consequently, a number of home builders have stepped up to build senior housing in a wide variety of price ranges.  Here in Southern California, retirees frequently want to stay in the area and, fortunately, there are a plethora of options available to them ... from Palm Springs to the Pacific coast (shown in this photo).

Until recently, those residents who wanted to live in a senior community in Orange County were limited primarily to older communities.  Now, however, there is a new option for home buyers.

Gavilan in Rancho Mission Viejo

One of the newer communities that is gaining in popularity in Orange County, California is the gated senior community of Gavilan in Rancho Mission Viejo.  There are three builders who are developing Gavilan, each offering their own styles and price options:

Standard Pacific Bungalows - 2 bd/2 bath/2 car garages - $500,000 - $600,000

Standard Pacific Casitas - 2 bd/2 bath/2 car garages - $600,000 - $700,000

Shea Single Family Homes - 2 bd/ 2 1/2 bath/2 car garages - $750,000 - $850,000

Del Webb Single Family Homes - 2-3 bd/2 1/2 bath/2 car garages - $800,000 - $900,000+

This gives home buyers a variety of options whether they can afford to spend $500,000 or twice that amount.

Amenities at Gavilan

Most of the new, modern homes in Gavilan are one story, with the exception of a few styles for those retirees who prefer the two-story option.  Among the green amenities you can expect in your home are: tankless water heaters, Energy Star appliances, water-efficient fixtures, weather sensing sprinklers, extra insulation and high efficiency air-conditioning systems.

The homes in this community surround the beautiful adult rec center known as the Hacienda.  Built around a luxurious salt water pool and spa, the Hacienda has a large, open great-room with a giant flat screen TV and a staffed bar, which makes it an excellent spot to mingle with your neighbors.  The Hacienda also contains a yoga studio, a fitness center, a barbecue area and bocce ball courts.

The community is located just off the Ortega Highway, a short distance east of the coastal community of charming San Juan Capistrano.  

Learn More about Gavilan at Rancho Mission Viego:


http://ranchomissionviejo.com/homes/gavilan/

If you are looking for more ideas about great places to retire, check out the tabs at the top of this blog.  They contain links to hundreds of additional articles about where to retire in the United States and overseas, financial planning, medical issues, changing family relationships, and more.

You are reading from the blog:  http://www.baby-boomer-retirement.com


(Photo credit:  Photo of the Southern California coast was taken by author, Deborah-Diane; all rights reserved.)

Tuesday, July 8, 2014

Should You Get a Medicare Advantage Plan with Your Medicare?

As you approach the age of 65, your first step in obtaining Medicare is to contact the Social Security Administration and sign up.  The ideal time to do this is within three months before you turn 65, during the month you turn 65, or during the three month period afterwards.  You can sign up at a later age, but you will pay more, in most circumstances.

You can read more about how to complete this process by reading my article "How to Sign Up for Medicare."

Once you have signed up for Medicare, your next step is to decide if you want to get a Medigap policy (Medicare Supplement Insurance) or a Medicare Advantage Plan.  In this post I will discuss Medicare Advantage plans, similar to the one I have selected.  You may also want to read my article  "Should You Get a Medigap Supplemental Policy with Your Medicare?"  

Medicare Advantage Plans

When you select a Medicare Advantage Plan you are still using Medicare.  You get your Part A and Part B services directly through your Medicare Advantage Plan.  Your healthcare providers are required to provide you with everything that original Medicare offers except hospice care and research studies.  You will still receive those services; Medicare just covers them directly.

The benefit of getting a Medicare Advantage Plan is that they usually offer extra services in addition to those you would get only from straight Medicare.  Depending on the insurer, these extra services could include vision, hearing, dental and wellness programs.  Some Medicare Advantage Plans charge no premium above what everyone must pay for basic Medicare; others charge a small additional premium.

For example, I have chosen to use Kaiser Permanente in California as my Medicare Advantage provider.  The only additional fee they have is an optional $20 a month for their Plus plan, which includes dental and extra vision benefits.  You need to understand your plan, however, because the fees and services vary from company to company.

All Medicare Advantage Plans must follow Medicare's rules and provide you with the basic services.  However, they can charge different out-of-pocket fees and they may have their own rules about their services, such as requiring you to get a referral from a primary care doctor in order to see a specialist.

Different Types of Medicare Advantage Plans 

There are a wide variety of Medicare Advantage Plans available and choices vary from state to state.  You can choose an HMO, a PPO, a Private Fee-for-Service plan, Special Needs Plans, HMO Point-of-Service plans and Medical Savings Account Plans.

A few months before your 65th birthday, most of the providers in your area will start mailing you brochures about their plans and some will have seminars to explain how their plans work.  Hospitals and senior centers in your community may also sponsor informational meetings.  Selecting the right program for you can be very confusing, so I highly suggest that you talk to your friends who are already on Medicare.  Ask them about the type of plan they are using, what they like about it and what they would change.  It is recommended that you discuss your choices with an agent who represents a variety of insurance companies and types of policies.

You may also need to take costs into consideration.  One of the factors which helped me make up my mind to use Kaiser was the fact that the optional premium was only $20 above the cost of basic Medicare and my out-of-pocket costs were very low ... for example, $10 to $15 for office visits.

On the other hand, the disadvantage was that, when I decided to switch from my prior insurance to Kaiser, I had to change all my doctors.  Some people are so attached to their current doctors that they don't want to make such a drastic change.  My husband was one of those, which is why he chose to use a Medigap Supplemental insurance policy rather than a Medicare Advantage Plan.  Since I am quite healthy and never saw my physician except for an annual medical exam, I did not mind making the change.
 
There is a lot more information that you need to know about Medicare Advantage plans.  In addition to reading brochures, attending seminars, and speaking with an agent, you can learn more by contacting Medicare directly.  I have included the contact information below. 

Contact Information for Medicare:

http://medicare.gov/

1-800-MEDICARE  (1-800-633-4227)
TTY 1-877-486-2048

Questions about Eligibility for Medicare:

Social Security Administration:  1-800-772-1213

To Get Personalized Insurance Counseling:

Call the State Health Insurance Assistance Program which is also called SHIP.  The number is different for each state. The one for California is listed below:

California SHIP:  1-800-434-0222

Regardless of your circumstances, nearly everyone should contact Social Security within three months before or after their 65th birthday and decide what they need to do.  This is the first step you should take in the process.

If you are interested in learning more about preparing for retirement, you may want to check out the tabs at the top of this page.  They contain links to hundreds of articles on family relationships after retirement, the best places to retire in the United States and overseas, financial planning and medical issues.

You may also be interested in reading:

How to Sign Up for Medicare
Should You Get Medigap Supplemental Insurance with Your Medicare?

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.wikipedia.com/commons
 

Thursday, July 3, 2014

Should You Get Medigap Supplemental Insurance with Your Medicare?

As I mentioned in a recent post, within three months before or after your 65th birthday, it is important that you contact the Social Security Administration to sign up for Medicare.  This is true even if you already have insurance through an employer or the military.

Once you have completed the paperwork for Medicare, the next thing you will need to decide is if you want to get a Medigap policy (Medicare Supplement Insurance) or a Medicare Advantage Plan.  In this post I will go over the Medigap Supplemental Insurance plans, like the one that my husband has selected.  You may also want to read "Should You Get a Medicare Advantage Plan with Your Medicare?" and "How to Sign Up for Medicare." These articles will help you consider all the options available to you.

Medigap Supplemental Insurance  

The reason why someone would want to have a Medigap policy is because Medicare doesn't pay for everything.  While regular Medicare will cover most of your medical expenses when you are over age 65, there are large deductibles and expenses that are not covered.  Medigap policies are designed to "fill the gap" by covering some of those expenses like copayments, coinsurance and deductibles, so that patients do not end up with a lot of large medical bills.   Some of the Medigap policies also cover things that Medicare does not include at all, such as emergencies during foreign travel, although each plan is different so you need to shop around to make sure you are getting the coverage that meets your needs the best.

You will have to pay a premium with a Medigap policy, in addition to the premiums you pay for Medicare.  You cannot have both a Medigap policy and a Medicare Advantage policy.  You have to choose one or the other.

One of the reasons that people sometimes choose a Medigap policy rather than a Medicare Advantage Plan is because they want to stay with their current doctors rather than be limited only to the doctors that are part of a Medicare Advantage HMO or PPO list of approved providers.   

For example, my husband has CKD (chronic kidney disease) and he was very happy with the doctors who were treating him prior to his 65th birthday.   He contacted all the physicians that he sees and discovered that all of them accepted both Medicare and Blue Shield.  As a result, he chose to buy a Blue Shield Medigap policy so he could stay with his favorite doctors. Conversely, I was not that attached to my physician so I chose a Kaiser Permanente Medicare Advantage plan.  My plan is substantially less expensive, but his plan allowed him to stay with his current physicians, which was important to him.

My husband also chose a Plan "F" Medigap insurance policy.  This is the most expensive Medigap plan.  He pays about $275 a month in addition to the $135 that Medicare currently takes out of his Social Security.  However, when he had a heart attack, we paid no deductible or co-pay.  On the other hand, as of 2019, when this article was updated, I only pay the standard $135 a month to Medicare, which is deducted from my Social Security, to cover the cost of my Kaiser Medicare Advantage plan.  However, spending the same amount of time in the hospital and having heart surgery would have cost me at least $1000 in deductibles and co-pays.  In other words, my husband pays an extra premium, but no co-pays and deductibles.  I do not pay an extra premium, but I do have co-pays and deductibles ... although they are quite reasonable.  

Whatever policy you choose, if you are unhappy with it, you should know that once a year in the fall  open enrollment period (between October 15 and December 7) you can select a different plan to use the following year.  However, if you have end stage renal failure (which means you are on dialysis), there are severe restrictions on switching plans.  This is one reason my husband wanted to keep his current doctors.  He did not want to change doctors, end up unhappy, and then be stuck with new doctors he did not like.

You can find a lot more information on the Medicare website.  In addition, as you approach age 65, you will be contacted by a number of Medigap and Medicare Advantage companies in your state.  You may want to attend their seminars and learn about the differences between what the various companies offer before you make a final decision.

Contact Information for Medicare:

http://medicare.gov/

1-800-MEDICARE  (1-800-633-4227)
TTY 1-877-486-2048

Questions about Eligibility for Medicare:

Social Security Administration:  1-800-772-1213

To Get Personalized Insurance Counseling:

Call the State Health Insurance Assistance Program which is also called SHIP.  The number is different for each state. The one for California is listed below:

California SHIP:  1-800-434-0222

Related Articles You May Want to Read:

Should You Get a Medicare Advantage Plan with Your Medicare? 
How to Sign Up for Medicare

Regardless of your circumstances, nearly everyone should contact Social Security within three months before or after their 65th birthday and decide what they need to do.  This is the first step you should take in the process.

If you are interested in learning more about preparing for retirement, you may want to check out the tabs at the top of this page.  They contain links to hundreds of articles on family relationships after retirement, where to retire in the United States or overseas, financial planning and medical issues.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit: www.wikipedia.org/commons