Wine Region of New Zealand - A Baby Boomer Dream Trip to Canterbury

This week we have a very special guest post about New Zealand's Canterbury wine region, including information on the wineries you may wish to visit, as well as popular restaurants in the city of Christchurch.  The post was written especially for this blog by experienced kiwi tour guides at MoaTrek, a company which operates small group tours in New Zealand. 

The country of New Zealand is on the bucket list for many American retirees who have always dreamed of traveling south of the equator.  The New Zealand authors who wrote this post even provided several photos of tourists enjoying the food and wine in their unique part of the world, including the top photo with Lake Wanaka in the background.  

Since this blog has never had an article about this region, we are sure our readers will enjoy the article below.  Perhaps it will spur a few of you to explore New Zealand personally! Below is their post:

TRAVEL EXPERTS' GUIDE TO NEW ZEALAND’S CANTERBURY WINE REGION

MoaTrek Wine Bucket List – Canterbury

 

If you love food, wine and unique travel experiences, New Zealand is probably already on your bucket list. You can get many big-name brands of New Zealand wine at your local restaurant or supermarket in a number of countries, but the most memorable experiences are created by visiting the remote but accessible corners of New Zealand’s wine regions, where you personally meet winemakers, drink the world's best wine, and eat meals to match. 

     

This New Zealand wineries guide for travelers has been written by experienced tour guides at MoaTrek, which has been running small group tours around New Zealand since the 1970s and, over that time, figured out where the best wines and wineries are. This article is a guide for overseas travelers planning a trip to New Zealand’s Canterbury wine regions, suggests the best wineries to visit, and recommends the best wines to try on your trip.

New Zealand is one of a group of ‘new world’ wine growing countries changing the global wine landscape - and while our viticulture history doesn’t go back as far as the traditional wine growing areas of Europe and the Middle East, it hasn’t taken long for New Zealand wines to gain a fantastic international reputation. As the youngest country on earth, our wine making history is relatively short; the first grapes were introduced by missionary Samuel Marsden in 1819, who remarked “New Zealand promises to be very favourable to the vine”.

      

The first larger scale wineries were established by Croatian immigrants around Auckland at the end of the 19th century, but it wasn’t until the 1970s and 1980s that the industry really started to develop. 

   

With warm summers, cold winters and good soil, Canterbury has a reputation for excellent and elegant Pinot Noirs, Chardonnays and aromatic wines, renowned for their rich flavour.  The Canterbury GI is very large, covering a 44,500 square kilometre (17,200 sq mi) region of New Zealand. (GI stands for the "Geographical Indications - Wine and Spirits - Registration Act" and
provides an international safeguard for New Zealand's geographic names in the wine sectors).

 

However, almost all of the region's vineyards are concentrated in a relatively small area around the city of Christchurch, prompting the establishment of two sub GIs within it, North Canterbury and the Waipara Valley. These are not the only wine producing areas you may wish to visit, with excellent wineries near Cheviot, Hanmer Springs and on the road to Akaroa producing well-regarded Pinot Noir; but the area around Christchurch is the area we will focus on in this article. 

   

The North Canterbury Wine Region is the top half of the larger Canterbury GI north of the Rakaia River in a small cluster of vineyards concentrated in 168 hectares (420 acres). The area plants Pinot Noir, Sauvignon Blanc, Riesling, Pinot Gris, and Chardonnay varieties.  Notable producers include French Peak (formerly French Farm), Melton Estate and Lone Goat, which is notable for producing well-reviewed Riesling from the vineyards originally owned by Giesen Estate and New Zealand's only Ehrenfelser wine. 

 

The main wine growing area of Canterbury is the Waipara Valley, north of Christchurch, and one of New Zealand’s newer wine regions, which began production in the late 1970s with Pegasus Bay.   The valley floor provides a warm micro-climate ideal for viticulture, with a rain shadow from the Southern Alps, low coastal limestone ridges and moderate, cool ocean winds to the east. 

Master of Wine Liam Stevenson has described Waipara as possibly the ‘most exciting place to grow Pinot Noir’, and it makes up the bulk of Canterbury's plantings (although there are also white wine varietals grown there).

Award winners from this region include Greystone Wines Pinot Noir, which has won the Decanter International Trophy and the Air New Zealand Trophy, and Black Estate, awarded the Trophy for Best Pinot Noir at the International Wine & Spirits Competition in 2010. 

Down-to-earth, warm and embracing, New Zealanders are known for their friendly hospitality... the perfect way to sample the top drops while relaxing in beautiful sunny settings and enjoying gourmet spreads.

How to Get to the Canterbury Wine Region of New Zealand

As the gateway to the South Island, many travelers will spend a night or two in Christchurch and take the opportunity to visit surrounding areas. Popular day tour destinations are Hanmer Springs, Kaikoura and Akaroa, which all have wineries on route to visit. You can drive yourself or take day tours from Christchurch. 

For real wine connoisseurs the Waipara Valley is on the way to both Kaikoura and Hanmer Springs. For those traveling South after crossing the Cook Strait by ferry, a stop-over in Kaikoura will be the perfect place to stay before visiting the Waipara Valley on the way South the following day. 

Canterbury wineries to visit:    
Pegasus Bay Winery, north of Christchurch
Terrace Edge Vineyard and Olive Grove in Waipara
Waiau River Estate in Hanmer Springs 

One Canterbury wine you have to try:
Mount Brown Estates North Canterbury Pinot Gris 2017

What to Eat in New Zealand

Being an island nation, New Zealand is big on fish and seafood. Our coastline is teeming with fish; local favourites include snapper, hapuka and the delicately-flavoured John Dory – best served lightly crumbed with lemon. One could say that fish and chips on the beach is a kiwi weekend institution! 

Scallops and mussels are restaurant staples, and delicious Bluff Oysters come into season during the New Zealand autumn. The rich waters off Kaikoura – an hour north of Christchurch – are famous for crayfish. In the Maori language, ‘kai’ means food and ‘koura’ means crayfish - and unsurprisingly, the local bounty you’ll find here is some of the best available in the world. (See the attached photo of koura, or crayfish.) One of the best ways to enjoy this delicacy is from one of the local ‘crayfish caravans’. These caravans are dotted along the coastline, selling freshly caught crayfish prepared with garlic butter and lemon. Devouring one of these beauties while sitting on the rocks looking out to sea has got to be one of the most quintessentially kiwi dining experiences you can have and certainly tops off a day of marine life encounters in this famous town.

Our Favourite Restaurants in Christchurch

 
Smack bang in the middle of the breadbasket of the nation and as the largest city in the South Island, Christchurch has always punched above its weight in the restaurant game. A lot of our guests finish their New Zealand trip in Christchurch, so a celebration dinner is called for!

Best overall - Cook'n with Gas - One of the most talked about restaurants in Christchurch. This award-winning bistro serves excellent modern New Zealand cuisine in a chilled out 1860s villa.

Best value - Shirley's Kitchen - Popular with university students, this Malaysian spot offers fantastic and affordable food. Try the Kampua, a mouthwatering dish that features noodles, BBQ pork and crispy onions.

Best takeaway - Burgerfuel - This iconic burger joint has locations all over New Zealand and the burgers are top quality - made with fresh, local ingredients such as 100% pure New Zealand grass fed beef and batch brewed tomato relish.

New Zealand has many other famous wine regions you may be interested in visiting like the Marlborough, Hawkes Bay and Central Otago. Check them all out here: 

LINK   https://www.moatrek.com/blog/best-wineries-new-zealand-visit  

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THANK YOU to the kiwi tour guides from MoaTrek for this fun information about what to eat and drink during a tour of the Canterbury wine region in New Zealand.  I hope some of my Baby Boomer readers decide to plan an adventure there.

For more information, you may also be interested in "The Rough Guide to New Zealand."

If you are interested in reading more about what to do after you retire, where to retire, financial planning, Social Security, Medicare, common medical issues after retirement and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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

Photo credits:  New Zealand kiwi tour guides from MoaTrek 

Medicare Inpatient and Outpatient Hospital Stays - What are the Differences?

If you are on Medicare and are rushed to the hospital, you may be told by emergency room staff that they are admitting you to the hospital as an outpatient, or for observation.  If you are sick enough to be kept overnight in the hospital, you probably are not paying full attention to what is going on.  Your only concern is being treated for your condition and feeling confident you are getting the best possible care.  However, whether or not you are admitted as an inpatient or an outpatient does make a difference for your future care and could have a significant financial impact on you.  Here are a few things you and your family need to know.

Why You Might Be an Outpatient Rather than an Inpatient

What if you are rushed to the hospital with chest pain, but the tests performed by the emergency room doctor do not indicate you have had a heart attack?  Rather than sending you home, they may decide to keep you overnight for observation.  You may stay in a special observation unit or you could be in a regular hospital room.  You will spend the night, or even several nights, in the hospital, and will probably need to sign some paperwork, but you are listed as an outpatient, under care for observation. Other than that, your treatment will be the same as if you had been admitted as an inpatient, but the decision could affect both you and your hospital in other ways.

Why Does the Hospital Admit Patients as Outpatients?

The simple reason why this happens is because Medicare has rules governing who can be admitted as an inpatient, and these rules have become stricter because outpatient care is cheaper for Medicare.

In 2011, Medicare spent $690 million for outpatient care.  By 2016, that amount increased to $3.1 billion and has continued to rise since then.  Simultaneously, the cost of reimbursements for inpatient care has decreased.  Hospitals do not like these Medicare rules because they get paid about one-third less to care for an outpatient than they do an inpatient.  In most cases, the patients receive the same care, but the hospitals are paid less to provide that care.

Hospitals face stiff penalties from Medicare if they do not follow the strict guidelines for admission as an inpatient.  If the hospital is audited and Medicare determines they admitted people as inpatients when they should have been admitted as outpatients, the hospital has to return the full amount of the Medicare reimbursement they received.  In fact, in 2016, outside audits forced hospitals to return over $400 million to Medicare for incorrect Part A (hospitalization) charges.

More Procedures are Becoming Outpatient Procedures

Approximately twelve years ago, a neighbor of mine had knee replacement surgery. She spent three nights in the hospital and a week in a rehabilitation center.  Since she was an inpatient during the three night hospital stay, Medicare Part A covered her hospital expenses, as well as the additional week in the rehab center.  This was helpful to her recovery, since she lives alone and would not have been able to care for herself for the first week after her surgery.

In 2018, the rule changed.  Total knee replacements are now considered outpatient procedures.  Even though nothing has changed about the procedure or the required after-care, Medicare now reimburses hospitals less money and patients who cannot afford to pay out-of-pocket for a stay in a rehabilitation facility must find someone who will take care of them.

Even in situations when the hospital does have some discretion about whether the patient should be admitted as an inpatient or outpatient, many of them are hesitant to admit people as inpatients.  This is because Medicare penalizes hospitals when they admit someone as an inpatient and the patient is readmitted within 30 days.  If the patient is only in the hospital under observation, the penalties for re-admittance do not apply.

Hospital Admittance as an Outpatient can Hurt You Financially

At first, you may assume that it really does not make a difference to you whether you are admitted as an inpatient or an outpatient, as long as you receive the same care.  However, being an outpatient can hurt you financially.

If you are admitted to a hospital as an inpatient, you are covered under Medicare Part A.  If you are admitted as an outpatient under observation, you are covered under Medicare Part B.  Under Part B, you may be liable for up to 20 percent of the cost of your hospital stay, unless your Medicare Supplement (Medigap) or your Medicare Advantage plan covers this extra cost.

After you are released from the hospital, the financial pain may continue. If you need to go to a skilled nursing facility or rehabilitation facility after your discharge from the hospital, Medicare will not pay for any of the cost of the rehab if you were in the hospital as an outpatient or if you were an inpatient for less than three days.

On the other hand, if you were admitted to the hospital as an inpatient and spent at least three nights there, Medicare will pay fully for the first 20 days of skilled nursing care and partially for an additional 80 days.  The cost of skilled nursing can be substantial, so this is an important consideration for patients.

The rules regarding inpatient vs. outpatient hospital stays have saved Medicare millions of dollars in reimbursements to skilled nursing facilities.  In fact, it resulted in a decrease of 15 percent in skilled nursing days covered by Medicare between 2009 and 2016.  However, it also forced patients to either pay out-of-pocket for skilled nursing or do without it.

What Can Patients do to Protect Themselves?

Patients and their families need to understand the difference between an inpatient and outpatient hospital admittance.  If they believe they should be in the hospital as an inpatient, particularly if they expect to need skilled nursing care after they are released, they should appeal any decision to only list them as outpatients. Patients also need to set aside funds to cover the cost of skilled nursing whenever it is unlikely Medicare will pay for it.

In addition, you should ask in advance whether or not your Medicare Supplement or Medicare Advantage plan will cover any of the cost of skilled nursing care when you purchase your policy.  If not, you may want to set aside money for these types of events.

You may also want to check with Medicare.gov periodically, so you stay up-to-date on changes.

For more information on a variety of Medicare topics and issues, including ways the Medicare program could be strengthened, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional helpful articles on Medicare, Social Security, where to retire in the US and overseas, financial planning, common medical problems and more.

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

Photo credit:  morguefile.com

Save Money During Retirement

The vast majority of Americans retire on a fixed income, which can get very tight over time.  As the years go by and the increases in their Social Security benefits turn out to be small or non-existent, it can become increasingly difficult to make ends meet.  This may cause stress and depression. While not all financial problems can be solved by continuing to tighten our belts, sometimes making a few changes can help stretch our dollars a little further.  As a result, I researched a number of sites for recommendations on how ordinary retirees can reduce their expenses.  Below are some of the ideas I discovered.

Money Saving Ideas after Retirement

1.  Cut out streaming services such as Netflix, Hulu and Amazon Prime.  If you are currently using all three, eliminating them can save you around $67 a month or $804 a year.  It will also protect you from the inevitable rate hikes.  If you must use a streaming service for your television entertainment, choose the least expensive one and prepay it each year to further reduce the cost.  In addition, with Amazon Prime you can get other amenities, such as free shipping on Amazon purchases, including the gifts you mail to your grandkids. Combined with using an antennae to watch local channels, you could find yourself with all the television options you want to watch. On the other hand, if antennas do not work in your area and the cheapest way for you to get your favorite TV shows is through Hulu rather than cable, then that could be your best option.  Just do your research, eliminate any unnecessary service, and make sure you are using the least expensive choice possible to enjoy TV.

2.  Do you really want to spend money on smartphone games?  Many people who use smartphones also spend an average of $7.25 a month on games.  Stick with free games and apps.  There are plenty of choices.  While you are at it, discuss your phone plan with your current carrier, as well as their competitors.  You may be able to save money by only paying for the amount of phone service you actually use!

3.  Eliminate subscriptions to newspapers and magazines. If you enjoy reading your news, download free news apps to your smartphone or follow your favorite news sources on Facebook and Twitter.  You can read all the major news stories through those sites and actually get the stories more quickly than waiting for tomorrow's newspaper.  This could save you $5 to $10 a month.

4.  Eliminate other subscription services, such as satellite radio.  Use free options like your local AM and FM stations or use Spotify and Pandora.

5.  Give up expensive coffee shops.  Our local Starbucks coffee shop is often full of retirees who enjoy meeting each other and chatting over a cup of coffee or a latte which could cost as much as $3 to $5 per beverage.  However, they could be going down the street to McDonald's and have the same conversations over a cup of $1 coffee.  Depending on how often they get together, saving a dollar or two a day could add up to a significant amount of money over the course of a year.

6.  Buy regular gas rather than premium, unless your car's owners manual specifically requires premium fuel.  The savings could add up over time.

7. Evaluate that annual membership at a warehouse store.  Do you really save enough to make the annual membership fee worthwhile?  How often do you use it?  Could you do just as well at your local grocery store by taking advantage of sales and coupons?  Spend a few weeks comparing prices and decide which is the best option for you.  If you discover that you use the warehouse store for more than just groceries, for example to fill your gas tank, replace your tires, purchase clothing, or for small appliances and gifts, you may decide to keep the membership.  Just make sure you are really using it.

8.  If you are retired and paying the full price for a gym membership, check with your Medicare policy.  Many of them offer free or extremely low cost gym memberships which could save you a substantial amount of money.  In many Medicare policies, these low-cost gym memberships are referred to as Silver Sneakers.  In addition, many local senior centers have exercise equipment and offer free or low-cost exercise classes.  Explore all your options and choose the one which costs the least and you are most likely to use.

9.  If you are still a smoker, give it up and reap the savings.  There are, of course, many other reasons to give up smoking.  However, if nothing else works, the fact that you could save as much as $200 a month, depending on how much you smoke, should be a good enough reason to give up this habit, especially if you are having trouble covering your expenses.

10.  Do you have other expensive habits or hobbies?  While no one wants to give up everything they love in order to survive during retirement, it could be worthwhile to explore less expensive options.  Are you taking guitar, piano, art or golf lessons?  Perhaps you could find free or low cost group classes rather than private ones.  Is your nearest golf course expensive?  Have you looked for a public course in your area?  Many cities offer free classes for senior citizens and have public pools, public tennis courses, public golf courses and other recreational facilities where seniors can participate for free or at a low cost.  Ask someone at your nearest senior center and see what they suggest.

11.  Reduce your debt payments.  Talk to your lender about refinancing your mortgage, if you have one.  If you believe your property tax assessment is higher than the actual value of your home, seek the help of a local Realtor and appeal it.  If you have a car payment, it is possible you may be able to refinance it through your bank or Savings and Loan.  If you are carrying a balance on your credit cards, see if you can transfer the balance to one with 0% interest for the first year, and try to pay off the balance within that time.  Check out every payment you make and see if there is a way to reduce it.

12.  Monitor your utilities carefully.   Lowering your thermostat a degree or two in the winter and raising it a couple of degrees in the summer could lower your gas and electric bills.  Reduce your water bill by taking shorter showers. You can make an even bigger difference by replacing some of your landscaping with drought resistant plants which require very little water.  Do you really need both a cell phone and a landline?  Eliminating the landline could save you $50 to $65 a month.  Making a few adjustments to your utility usage could reap large savings.

13.  Change your Medicare supplement to an HMO or try a Medicare Advantage plan.  Medicare beneficiaries have two choices in getting their Medicare benefits.  They can get basic Medicare and then buy a supplement OR they can get a Medicare Advantage plan.  In most cases, the Medicare Advantage plan is less expensive and often provides extra benefits, such as dental and vision insurance.  Talk to several insurance carriers in your area and compare the cost of their plans. Choices vary from state to state. You will also need to compare your co-pays, deductibles and drug costs.  After making the comparison, decide which plan will give you the best coverage for the least amount of money.  In many cases, a Medicare Advantage plan can save you several hundred dollars a month over the cost of basic Medicare with an additional premium PPO supplement.  If your income is low, you may also qualify for a combination Medicare/Medicaid plan. Be sure to ask about that, because the savings can be significant.

14. Evaluate the gifts you give your children and grandchildren.  Many senior citizens risk their own retirement because they are too generous with their adult children and grandchildren.  Even though you may want to help them, it doesn't benefit anyone if you end up becoming dependent on your children because you can no longer support yourself.  Keep that thought in mind when your children want to borrow money from you or ask for help with car purchases or college loans.  You can offer them guidance in finding other ways to finance the things they want, but you should not give them money that you cannot afford to lose. If you do, it will eventually only cause more problems for everyone.

15.  Don't forget to use AARP or AAA senior discounts.  Many restaurants, movie theaters and other organizations will give you a senior discount but, in most cases, you have to specifically ask for them.  Do not hesitate to ask!  If you belonged to a union or other professional organizations during your working years, you may also qualify for various business discounts. For example, my educator union membership provides me with a 10 percent discount on my monthly cell phone bill.  Take advantage of every discount you can find.

16.  Go to a Food Bank.  Most food banks do not ask you to fill out any financial information.  They will give a bag of groceries to anyone who shows up.  If you are faced with the choice between food and your medical expenses, a food bank may be able to provide you with the essentials.  Then, talk to your medical provider about how you can lower the cost of what you are spending on co-pays or prescription drugs. This is a choice no retiree should have to make.  

If you are looking for more ideas to save you money, you may want to read the book "Minimalist Budget: Everything You Need to Know about Saving Money."  It has even more great ways to save.  Use the above link to check it out.  

Look for Ways to Increase Your Income

If the above actions still leave you short of money, you may want to talk to your local Social Security office and the Department of Social Services.  They may be able to help you get a housing voucher to lower the cost of your rent, add you to the waiting list for low-cost senior housing, provide you with SNAP (food stamps), or put you on Supplemental Security Income (SSI).

If your current income is too high to qualify for any of those programs, you may want to talk to your local Senior Center or state employment office about how to find a part-time job to supplement your retirement income.

If you own a home, you may be able to rent out a room, or rent out storage space in your garage or basement.  Even small increases in your income can help bridge the gap between your fixed income and what you need in order to live comfortably.

Budgets are tight for many senior citizens.  You are not alone.  Reach out to your senior center and local government agencies to get the help you need to balance your budget before you get too deeply in debt.

If you are interested in learning more about retirement planning, Social Security, Medicare, affordable places to retire in the US and abroad, and common medical problems, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional, helpful articles.

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

Photo credit:  Google images / Smart thermostat

Hospice Care - What You Should Know

Baby Boomers are beginning to reach the age when they, their spouse, or their elderly parents may be nearing the end of their lives.  This new challenge brings with it a great deal of anxiety and uncertainty, as well as the possibility of pain and discomfort.  Although we would all prefer the end of our lives to be as easy and peaceful as possible, we are not sure how to bring this about.  One way to get the help you need is to call on hospice to provide assistance during the final months of life.

This week we have a special guest post by Lucille Rosetti from TheBereaved.org.  She has written a book called "Life After Death - A Wellness Guide for the Bereaved."  You can use the above link to her website to contact her for more information about her book.  In the thoughtful post below, she discusses common questions people have about hospice.

Three Questions to Ask When Considering Hospice Care

by:  Lucille Rosetti

When people run out of options for curing or treating an illness, they and their families often have to make some difficult decisions. No one wants to see a family member in pain or discomfort, so hospice care is frequently one of the options on the table.

For most of our lives, medical decisions are fairly simple and easy — take this antibiotic, or eat more vegetables. However, for people facing the end of their lives, the decisions are rarely simple and never easy. You have a lot of questions, so here are a few basic answers to help make you and your loved one feel more comfortable about hospice care.

What can I expect from hospice care?  Comfort.

Hospice care is relatively diverse, so the nuances of what to expect vary greatly depending on your needs. In general, the goal of hospice care is to give someone the best possible life they can have in whatever time remains. Some people mistakenly think hospice care is only for those who are about to die. In reality, hospice care is about providing physical comfort to those whose terminal illness is no longer responding to treatment. There is a misconception that hospice care is a last resort, or that it only occurs shortly before death. While that is true in some cases, there are many people who live for several months or even longer in hospice care.

Who will be caring for my loved one?  Professionals.

Depending on your situation, you may have a variety of caregivers in your hospice team, from nurses to dieticians to personal care assistants to social workers. Taking the time to get to know the individuals on your hospice care team will reduce negative emotions, such as anxiety or awkwardness, and help everyone work together with more compassion and empathy. Building rapport with the team will help both you and your loved one have an easier time trusting the professionals and understanding medical decisions.

This is especially true for the hospice care social worker. Their job is to provide support and comfort to your loved one, making sure their wishes are understood. These are highly trained professionals, and they must have a master’s degree in social work, which often includes around 1,000 hours of hands-on practical experience. 

Some people may wish for their loved one to receive care from a licensed osteopath, who can provide a more holistic approach. However, while Medicare doesn’t offer coverage for holistic medicine, they do offer coverage from physicians who are licensed as osteopaths. If you would like expanded coverage for your loved one, consider looking into a Medicare Advantage plan, which offers a number of different options for you and your family to explore.  (Some Medicare Supplements may also offer you choices which will fit your needs.  You should always explore the best Medicare plan for your situation well in advance of needing hospice care or any other specialized treatments.)

How will I manage things when my loved one passes away? Day by Day.

There are a great many things to do and consider after a loved one passes away. Making sure you have a clear understanding of their end-of-life wishes can make this process exponentially easier. Hospice care workers help ease the burden of end-of-life care for family members and caregivers, but they won’t be involved in how to manage the burden after death.

To keep things running smoothly, be sure your loved one shares their important documents with you, such as their will, insurance information, living will, asset information, and financial records. Your hospice care team can help you know which documents you need and help you start difficult conversations with your loved one about end-of-life arrangements. Talk to them about how they want to be remembered: funeral or memorial, burial or cremation, flowers or donations. 

Moving into hospice care can be scary. To many, it signifies that your loved one has entered the final stages of life. The emotional turmoil can be draining for you and your family member entering hospice. You can find comfort in remembering that hospice care isn’t about dying. It is about prioritizing comfort, living life to the fullest, and celebrating a person surrounded by love.

Our thanks to guest poster:  Lucille Rosetti

If you are interested in more information about common medical issues as we age, Medicare, Social Security, where to retire, financial planning and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.  

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

Photo credit:  provided by Lucille Rosetti - photo from Pexels

Best States for Retirement per Moneywise

Many Americans prefer to remain in their home state after they retire.  However, do you know how your state ranks compared to other states as a retirement destination?  Is it affordable and safe, with a comfortable climate and good healthcare?  Moneywise did the research for you and put together a list of the best states for retirement.  If your current state is on this list, you may be best off remaining where you are, or at least in a retirement community in your home state.  If your current state is not on this list, you may want to do a little research and decide if there is a nearby state where you may be able to live more affordably, comfortably, and safely.

Below is the list of states which Moneywise believes are the best places to retire, with the best states at the top of the list and the rating dropping from there.  All of these states are in the top twenty of those in the United States, according to the Moneywise research.

If your home state is not listed below, you may want to check the article "Worst States for Retirement" to see if it is listed there.  If it is not on either list, consider it a neutral state for retirement.  

Top Ten States for Retirement

New Hampshire - According to both Moneywise and U.S. News, this is the best state for retirement, although you will still have to deal with cold weather in the winter.  However, it has low taxes, including no sales tax or state income tax, beautiful scenery, and high quality healthcare.  In addition, housing prices are lower than that in other nearby states in the Northeastern U.S.   You should know that there is a 5 percent tax on dividends and interest.

South Dakota - If you are looking forward to spending time in the wild outdoors, hunting, fishing, camping and hiking, this could be the ideal state for you.  There is an abundance of affordable housing in both the small towns as well as the cities of Sioux Falls and Rapid City. The state does not tax Social Security or pensions, there is no inheritance tax, and the state sales tax is only 4 percent.

Colorado - Do you love the mountains?  Enjoy skiing or other winter sports? This state has a high quality of life, good healthcare, and high senior tax deductions.  Many of the small towns are quite affordable, although the major cities can be expensive.

Iowa - You may be starting to see a theme in this list of the best retirement states.  It seems that many of the states with plenty of outdoor activities are also great places to retire.  Housing in Iowa is affordable.  In fact, the cost-of-living in Iowa is approximately 12 percent below the national average.  Healthcare is also less expensive than in many other states.

Florida - Florida has long been considered a mecca for retirement, especially for people who lived along the East Coast during their working years.  On the Moneywise list, it is ranked as the 5th best state for retirement. There are miles of beaches and plenty of delicious seafood.  The photo of the sunset at the top of this article was taken in Florida.  Grandchildren will want to visit on their way to Disney World and the other theme parks in Orlando.  Homes are very affordable, whether you buy or lease.  There is no state income tax, estate tax or inheritance tax.  There is also no tax on Social Security or other retirement income. My parents retired to Florida and lived there for three decades until the last few years of their lives, when they returned to their home state to live with family.  They loved Florida and hated to leave.  Of course, if you retire there, you will need to deal with some of the less pleasant wildlife there, including mosquitoes and alligators!

Utah - This state has one of the fastest growing populations for people of all ages.  There are many reasons why people find this state appealing, including beautiful scenery, national parks, and other amenities.  The state is rated high for its healthcare system, Salt Lake City is affordable, and the city also has excellent public transportation.  Social Security and other types of income are taxable, but seniors get a tax credit of $450 per person and other taxes are low.

Virginia - This state has both mountains and beaches, with numerous small towns, yet parts of it are in close proximity to Washington, DC and other large cities.  Blacksburg, which is home to Virginia Tech University, was ranked by Forbes in 2014 as the best place in the nation to retire. My college roommate, who is now a retired English professor, lives there and loves it. Housing throughout most of the state, except for the area close to Washington DC, is quite affordable.  There are also special tax benefits for retirees.

Idaho - Another great state for those who love the outdoors is Idaho.  It is rated the 4th safest state in the nation and the overall cost-of-living is 5 percent lower than the average in the United States.  Social Security is not taxed and healthcare is also less expensive than in other states.

Arizona - This state has become popular for some people moving out of California but who want to stay close enough to easily visit friends and family in their home state.  There are a wide variety of activities in Arizona, including trips to the Grand Canyon.  Golf courses are plentiful and can be enjoyed the year around (although you will want to play early in the morning during the summer).  The state gets 250 days of sunshine every year.  You can choose from the desert areas around Phoenix or the mountain communities surrounding Flagstaff.  My sister-in-law and her husband moved from California to Flagstaff and love it there.  Housing is generally affordable and Social Security is not taxed.

Minnesota - Minnesota is well-named as the state of 10,000 lakes.  There are actually more lakes than that!  On the other hand, the winters can get extremely cold.  The state has a high quality of life, including its healthcare system.

Other States in the Top Twenty Best States for Retirement

The states listed below are also ranked in the top 20 for retirement.  You may want to explore a few of these, as well, before making your final decision about where to retire.

Washington State
North Carolina
Montana
North Dakota
Pennsylvania
Missouri
Massachusetts
Nebraska
Wisconsin
Nevada

If the state where you are currently living is one of those mentioned in this article, you may be best off staying right where you are.  If not, you may want to consider moving to one of the states on this list, especially if you are struggling financially or you do not feel safe or happy with the healthcare in your current location.  Do your research before making a major move, so you feel confident you will be happy with the change.

If your state is not on the list above, check out this article to see where it ranks on "The Worst Places for Retirement."

For more information on where to retire in the U.S. or overseas, financial planning, Social Security, Medicare, or common medical issues, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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

Photo credit:  morguefile.com

Worst States for Retirement per Moneywise

The vast majority of Americans retire in the same state and home where they lived in the years prior to retirement. Usually, they are happy there and wish to remain. However, some retirees yearn to live somewhere fresh and new during the last few decades of their life.  Before they do something rash, they need to carefully research that decision.  They will almost certainly want to avoid ending up in one of the worst states for retirement. Fortunately, Moneywise looked at the cost of living, taxes, climate and crime rates in all fifty states and came up with their list of the 25 worst states for retirement.

What if you already live in one of the states listed below?  If you are comfortable where you are, can afford the cost-of-living, enjoy the weather and you are not affected by a high crime rate in your specific community, you may decide to stay where you are.  After all, you have managed to survive there for most of your life, and enjoyed it.  There is no reason to leave. However, if you are struggling to survive financially or you are fearful because of the crime, you may want to leave your current state in favor of one with a lower cost-of-living and less crime.  

Below, you will find the states which Moneywise listed as the worst places for retirement. The summaries below give details about the twelve worst states based on the Moneywise research, followed by a list of thirteen more which are not as bad, but still fall in the bottom half of the states for retirement locations.

You may also be interested in reading about the "Best States for Retirement per Moneywise."


Twelve Worst States for Retirement

Louisiana - This state was rated as the very worst one for retirement.  It is a pretty state and the people are friendly, but it has high heat and humidity, and you are very likely to have to deal with an occasional Category 4 or 5 hurricane if you live there very long.  You may even meet an unwelcome alligator if you live near a lake or river. The sales tax rate is 9.88%, the nation's highest.  The state also has the second-highest crime rate in the country, although there are some communities like Inniswold and Belle Chase with lower than average crime rates for the state.  In addition to the other problems, the healthcare system is rated low in quality

New Jersey - Although this state has wonderful beaches and multiple golf courses, it also has high taxes and an extremely high cost for housing, whether you are purchasing a home or renting.  As a result, it was rated the second worst state for retirees.  The combined state and local taxes are also the second highest in the United States.  The state sales tax is almost 7% and is charged on restaurant meals, furniture, and car repairs in addition to most consumer goods. The state cost of living is 22 percent above the national average!

West Virginia - This state is beautiful and the cost of living is approximately 3 percent below the national average.  However, the residents of this state are also the most obese and healthcare is expensive compared to other places. Because of the demise of the coal industry, many small towns are in decline and the rate of property crimes is high.

Hawaii - This state sounds like a dream come true for many retirees.  However, the high cost of living is too much for the majority of retirees.  Both the cost of purchasing a home and the rents are exceptionally high.  Many people end up living in expensive high-rises in busy cities on the islands.  Basic items can be expensive and gasoline prices are the highest in the US.  In addition, if you want to visit family and friends on the mainland, the travel can be very costly.

New York State - Outside of New York City, this state has many charming small towns and wineries.  We know, because one of our daughters lives in an adorable town a few miles outside of New York City. Unfortunately, the cost of living is about 29 percent higher than the national average, no matter where you settle in the state.  Healthcare costs are also quite high.  It can be a difficult place to live for retirees on a fixed income.

Arkansas - This state has spectacular scenery and could be a nature lovers paradise.  Sadly, the state also has one of the highest crime rates in the U.S., as well as one of the lowest scores for healthcare.  According it WalletHub, it is ranked last for quality of life.  It gets very hot in summer, with high humidity and lots of mosquitoes. On the other hand, if you don't mind those problems, it is a very affordable place to live.

Kentucky - Hunting and watching football are popular activities in this state.  Sadly, 11 percent of senior citizens in Kentucky live in poverty, and healthcare costs are unusually high. The typical senior is in poor health compared to comparable seniors in other states, often because the number of people who smoke is quite high and the people tend to be more sedentary than average. On the bright side, the cost of living is also very low. 

Rhode Island - It gets extremely cold in this little state.  Although healthcare is good, the state has high taxes, a high cost-of-living and the worst transportation infrastructure in the U.S.  Unless you grew up there and feel connected to the state, it may not be a good choice for most retirees.

New Mexico - This state was on the list because the cost of housing is above average in desirable cities such as Albuquerque and Santa Fe, and the crime rate is very high in other cities, such as Las Cruces. In addition, there are severe weather extremes, ranging from high summer temperatures in the lower elevations, to snow and ice during the winter in the more mountainous areas.

Alaska - Many people who decide to "get away from it all" think of moving to Alaska.  However, the lifestyle can be harsh for someone who is not accustomed to living in a state which is subject to earthquakes, volcanoes, harsh temperatures, and other potential natural hazards, in addition to going months at a time in almost total darkness.  Although state, city and real estate taxes are low, the overall cost-of-living is high because so many products must be flown in from outside Alaska.  The cost of healthcare is the highest in the U.S.  Some people even go to hospitals in the lower 48 states for some of the more expensive procedures.

California - My husband and I have retired to California, and we appreciate our ability to live near some of our children and grandchildren, but we recognize that it can be a difficult state for retirement, despite the generally mild climate and beautiful coastal views, including the one in the photo at the top of this article.  Unfortunately, it also has the second highest cost-of-living, the fifth worst tax burdens, and the seventh-worst healthcare in the U.S.  The state's sales tax is 7.25 percent, plus there are often local taxes.  Roads in some areas are in disrepair. About 15 percent of California retirees end up moving to the neighboring states of Arizona, Nevada or Oregon, where their retirement dollars stretch much further.  My husband and I have benefited by living in one of the more affordable retirement communities in the state, Laguna Woods Village, and we have been pleased by the care we have received from our Medicare Advantage HMO, Kaiser Permanente. However, not everyone can take advantage of these resources, so we understand why this is definitely not the right retirement state for everyone.

Oklahoma - This state is popular for those who love country music and are seeking an enthusiastic group of sports and rodeo fans. However, it is also in the middle of "tornado alley" and residents can expect to be exposed to frequent violent storms on an annual basis.  As a result, many of the roads and bridges are in need of major repairs.  There is a lower than average number of doctors per capita, and a higher than average rate of crime in the cities, as well.

Other States with Below Average Retirement Appeal

The states below were also ranked by Moneywise to be in the bottom half for retirement, either because of their climate, taxes, cost-of-living or crime rates.  However, these states are at least closer to average than the states listed above.  Any state which is not mentioned in this article are considered more desirable for retirees:

Mississippi
Maryland
Indiana
Connecticut
Alabama
Georgia
Illinois
Tennessee
Michigan
South Carolina
Oregon
Texas
Delaware

If your state was not mentioned in this article, you have probably retired in a great place.  If you are considering a move from a state not on this list to one which is, you may want to do more research before making a final decision.  Just make sure you can afford to live comfortably and safely in your new state, pay the taxes, and get the quality of healthcare you need.  If you are happy, that is more important than any list of best or worst places to live!

If you still have not decided where yo wish to live after retirement, you may want to check out the article "Best States for Retirement."

If you are interested in more information about where to retire in the U.S. or overseas, Medicare, Social Security, financial planning, common medical issues and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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

Photo credit:  Photo of the Laguna Beach coast courtesy of the author.

Dental Hygiene and Your Health - Take Care of Your Teeth to Extend Your Life

Many people who are currently retired or near retirement grew up in a time when dental hygiene consisted of brushing your teeth before bed and visiting the dentist only when you were in pain.  Using dental floss and going to the dentist for regular check-ups was not a priority for many middle class and low-income families in the 1940s and 1950s.  Today, after decades of neglecting their teeth and gums, millions of seniors now suffer from dental problems, including inflammation and gum or periodontal disease. What many do not realize is that neglecting your teeth can also contribute to a wide variety of illnesses which affect your entire body and could even shorten your life.

The good news is that taking a more aggressive approach toward dental care, even in your later years, can reverse or slow down the damage the inflammation may have caused to other organs in your body.

Does Medicare Cover Dental Care?

The bad news is that Medicare does not cover most dental care, dental procedures, or supplies, including fillings, cleanings, tooth extractions, dentures, dental plates, or other dental devices.  Patients pay 100 percent for these non-covered services, which means the patients carry the burden of most dental care.  As a result, it is smart for Medicare recipients to buy a dental supplement or choose a Medicare Advantage plan which includes dental coverage.  Both choices are available and are a good idea for retirees.  You should discuss your options with your insurance agent.

In addition, you may want to find a dental school in your area which might provide some types of dental care at a discount.

Taking care of your teeth as you age can be life saving, so it is important to make sure you find a way to access the care you need.

Medical Advantages of Better Dental Care

Fewer Lost Teeth - The most obvious advantage to caring for your teeth and gums is that you are less likely to lose your teeth as you age.  According to AARP, the current average amount an American over the age of 65 spends on dental care is $15,340 over a 20-year period.  People who spend the last decades of life getting dentures, implants or undergoing multiple root canals may actually spend significantly more than that amount.  Learning to take proper care of your teeth could reduce this expense substantially.

Healthier Heart - People who have poor dental hygiene may develop endocarditis, which is an infection or inflammation of the inner lining of the heart chambers and valves.  This can be a fatal heart problem.  In other words, ignoring your teeth could kill you.

Healthier Kidneys and other organs - Research has shown a correlation between poor periodontal health and atherosclerosis, which is the hardening and narrowing of the arteries.  They now know that atherosclerosis is suspected to contribute to a variety of health problems, including chronic kidney disease. 

Lower Cancer Risk - According to a study done in 2017, postmenopausal women who have a history of periodontal (gum) disease are also a a heightened risk of developing breast, esophageal, gallbladder, skin and lung cancer.  

Clearer Lungs - Another study showed that patients who practice good oral care during a hospital stay are able to decrease their risk of hospital-related pneumonia by 39 percent. Even if you are so ill you do not feel like taking care of your teeth, forcing yourself to do so could save your life. Brushing your teeth and using floss regularly at home may also help protect your lungs from unnecessary infections.

Reduced Blood Sugar Levels - People who have periodontal disease and diabetes at the same time may have a more difficult time controlling their blood glucose levels.  Doing everything possible to deal with both these medical issues in appropriate ways will help minimize your risk.  

Less Erectile Dysfunction - Most men have never considered that there may be a link between caring for their teeth and their sexual function.  The reason for the connection is because chronic inflammation in any part of the body, including the gums, can eventually damage the lining of blood vessels in all parts of the body, including the sexual organs.  This one reason alone may make men more willing to care for their teeth and gums!

How to Properly Care for Your Teeth and Gums

See a Dentist at Least Every Six Months - Your dental hygienist and dentist will check your mouth, looking for signs of oral cancer, decay and periodontal pockets in your gums.  If they notice a problem, they will recommend a course of treatment.  It is smart to follow their advice, whether that means flossing your teeth more often, having cavities filled, getting a root canal, or undergoing gum surgery.  While some of these treatments may seem expensive at the time, in the long run they can be less expensive than allowing dental problems to go untreated.  If your dentist suggests that you see him more often than every six months, it is a good idea to follow their instructions.  It could save you money on more expensive treatments in the future.

Follow Your Dentist's Instruction for Oral Care - Between visits to the dentist, it is important you follow your dentist's instructions regarding flossing, the type of toothbrush you should be using, and the type of mouthwash, toothpaste and other products which will work best for your particular dental hygiene issues.  For example, they may recommend products specifically designed to treat dry mouth or tooth sensitivity. If you have any questions about which products are best for you, you should ask them directly.

If you are interested in learning more about common medical issues as you age, Medicare, Social Security, financial planning, where to retire and more, use the tabs and pull-down menu at the top of the page for links to hundreds of additional helpful articles. 

Source of facts used in this article:  AARP Bulletin, October 2018

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

Photo Credit: Dental School at the University of New England

Caregiver Burnout - Regain Your Life and Health

Millions of Baby Boomers across the nation are caregivers for a family member, whether that person is their elderly parent, a spouse, a handicapped child or another relative.  If you have cared for a sick loved one who had the flu or some other illness for a few days, imagine how demanding the experience would be if it continued for years.  It is not unusual for a caregiver to become exhausted, stressed, overwhelmed, depressed, lonely and, in some cases, the caregiver may even become ill themselves.

In addition, a caregiver who is married and responsible for their own family may find that devoting themselves to the care of an ill relative can take a toll on their other relationships.

As a result of the many problems which can affect a caregiver, it is important they learn how to take care of themselves, as well as the people under their care.  This balancing act can be essential if they want to maintain their own health.  Below are ideas to help caregivers regain their lives, keep themselves healthy and maintain their relationships, without abandoning the people who need their help.

Caregivers Need to Ask for Help

Check out respite care - Many communities offer a public adult daycare program.  This gives you the opportunity to drop off the person under your care for the day.  Often you will find that elderly people, even those with serious health problems or dementia, enjoy being able to get out of the house, spend time with other people, and engage in stimulating activities.  Meanwhile, you can use the day to run errands, schedule doctor's appointments, see friends or simply take a nap.  Adult daycare services are frequently offered on a sliding financial scale, so caregivers can pay an affordable amount based on their income.  In addition, some private nursing homes offer temporary stays on a space-available basis, which make it possible for you to leave an ill patient with them for a few days while you take a trip with your family.  This is an ideal solution when you need a break, but do not have anyone else in the family who can help you. It can also be a solution if you become sick, need to go into the hospital yourself, or have other problems which make it temporarily impossible for you to keep up your caregiver duties. 

Ask friends and family for help - I have a friend whose husband developed severe Parkinson's disease in his mid-60s.  He likes to sit at home all day and watch Westerns or football on TV.  He rarely speaks or engages with anyone.  Naturally, my friend is not comfortable leaving her husband alone at home.  As a result, she often asks friends and family members to simply come to her home and sit with her husband while he watches TV.  This gives her a break and the opportunity to get out of the house and do things for an hour or two several times a week.  If you know someone who is caring for a family member in a similar situation, reach out and offer to sit with their loved one occasionally.  It will just take a few hours of your time, and there is no better gift you can give a caregiver than a little of your time.

Say "Yes" When Someone Offers to Help - Many caregivers believe they are the only person who can take care of the patient under their care.  However, both you and the patient need to learn to accept help when it is offered.  You do not want to feel you are being held hostage by a demanding relative who will not let you out of their sight.  It is beneficial for both the caregiver and the patient when they allow other people to help as much as possible.  In addition, you are also helping the person who offered to help you.  People feel good about themselves when they do something nice for someone else, even if it only happens occasionally.  Having someone sit with your family member while they sleep or watch football on television is an easy way for your friend to help you and feel good about themselves at the same time.  Even if a friend is not comfortable staying alone with the patient, but they offer to bring over food or mow your lawn, accept the offer.  It is one less thing you will have to do.  Learn to be gracious and appreciative in accepting whatever help you receive.

Let the Patient Help Themselves as Much as Possible - The person under your care may not be able to do much for themselves, or they may be able to do some basic things such as feeding themselves or using the remote control for the TV.  Let them do as much as possible for themselves.  It will lessen their boredom and help them feel good about themselves.  It will also take some pressure off of you.  You can make their self-help easier if you make sure your home is as safe as possible.  You may want to install handrails in the bathroom, remove rugs which make it difficult for them to use a walker, order a remote control or telephone with extra large buttons, or make other simple adaptations to your home.  The more they can do for themselves, the easier it will be to care for them.

Caregivers Need to Take Care of Themselves

Stay in touch with friends - It is not enough that you find ways to get out of the house if you only use the time to buy groceries and run other essential errands.  You also need to spend time with your friends, go out to lunch, and keep up your favorite activities, whether that means staying involved with your place of worship or joining a book club.  Do not feel guilty about having fun.  In addition, chat on the phone with your friends whenever you cannot see them.  You will only resent the person under your care if you feel you had to give up everything and everyone important to you.

Pamper yourself - Whether you get an occasional massage or go away for the weekend, doing something special for yourself once in a while is essential.  Make a list of things you used to enjoy and try to schedule a few of those activities as often as you can.  Make appointments to get a manicure or have your hair done; go shopping; take a walk in the park. 

Join a caregiver support group - Many senior centers, community recreation departments and churches offer caregiver support groups. This is an excellent way to make new friends, share your feelings, and learn about community resources which could help you.  If you cannot find a support group near you, there are online groups available.

Take care of yourself - Make sure you take care of your own health.  Be sure to go to the doctor yourself, get exercise, take a relaxation class like yoga or meditation, eat well and get plenty of sleep, even if that means taking a short nap in the afternoons.  If you enjoy reading, exercising, gardening, spending time online or knitting, do not give up your favorite activities.  Set aside some time each day to engage in one of your favorite activities and take care of yourself. You cannot care for someone else if you become ill yourself.

Get all the information you can - You may want to purchase a helpful guide to being a caregiver.  If you are taking care of someone with dementia, a particularly helpful guide is:  "The 36-Hour Day: A Family Guide to Caring for People with Alzheimer Disease, Other Dementias and Memory Loss."  You will find this book is an invaluable resource and will help you maintain your own sanity.

If you want to learn more about common health issues as you age, Medicare, Social Security, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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

Photo credit:  morguefile.com

Low Investment Costs on Retirement Funds can Save You Money

As people approach retirement, many of them plan to take a conservative approach to handling the money in their 401(k) or IRA.  At the same time, they want to be sure that every penny they have saved over the years can be put to work earning an income for them, with as little as possible going towards unnecessary fees.  What is the best way to achieve those goals?

According to the AARP Bulletin columnist and author, Jane Bryant Quinn, who wrote the book, "How to Make Your Money Last," most retirees do not need to use a broker or financial advisor if  they decide to simply invest their money in a mutual fund and collect the dividends.  They can put their savings into funds with diversified investments, be charged either no fee or very low ones, and still be able to take a hands-off approach to their investing.

When You Should Hire a Financial Advisor

Before we discuss the low cost and zero cost funds which are now available, it is important to point out that if you have a lot of assets, a complicated financial situation, or prefer to be personally involved in choosing individual stocks and similar investment products, you should seek out a financial advisor who can help you put together a comprehensive financial plan and assist you in making investment decisions. In these situations, hiring a financial planner and utilizing their services is a wise choice.  If you decide to do this, expect the advisor to charge you up to 1 percent of the value of your assets annually for handling accounts under $1 million.  If their investment strategy is successful, it can be well worth the money.

When using a financial advisor, be sure to take full advantage of all the services, research reports, and advice the company offers.  You and your advisor should watch your investments carefully, re-balance your portfolio periodically, and make investment changes as market conditions shift.

Low-cost and No-cost Funds are Becoming More Available

For investors who do not want to spend their later years following the stock market daily, the decision to invest in mutual funds is an easier option.  Like a financial advisor, most funds will charge annual fees, which can be as much as 1.1 percent of the amount you have invested.  This will reduce the expected return on your investments.

In the past few years, consumers have discovered that they can do just as well, and sometimes better, by investing their money in low-cost and no-cost mutual funds.

In 2018, Fidelity began to offer consumers a Zero Fee Total Market Index Fund which is invested in a variety of U.S. companies, plus a Zero Fee International Stock Index Fund, another fund which focuses specifically on major U.S. companies, and one which invests primarily in midsize and smaller U.S. stocks.  There is no minimum investment in these funds, so even those retirees with very modest retirement savings can benefit from one of these funds.

In addition to the no-cost funds offered by Fidelity, both Charles Schwab and Vanguard offer a variety of low-cost funds which charge as little as 0.02 percent annually.  Before making a final decision, investors may wish to check out all their choices and talk to the staff at more than one company.  Ask about the minimum required investment, the amount of income their funds have historically paid their investors, the stocks held in each fund, and any other questions you may have.

You may also want to discuss your options with a financial planner, by scheduling a one-time appointment with one who will go through all your options.  Make sure you feel confidant in your decision before making an investment.  

You may also consider low-fee exchange-traded funds, some of which have low minimums and no sales fee.  ETFs, like mutual funds, will mirror the rise and fall of specific sectors of the larger market. They are traded on the stock market throughout the day.  

More Information on Handling Your Retirement Savings

In addition, you may wish to read my recent post on this blog, "Your Retirement Savings Can Last for Decades - Learn How."  That post goes into additional detail about the investment recommendations of Jane Bryant Quinn, and explains the 4 Percent Rule for withdrawing money from your retirement account, so you can assure yourself that your money will last as long as you do.   It also explains when it may be more realistic for some retirees to follow a 3 Percent withdrawal plan, instead. 

While you are at it, order a copy of  Jane Bryant Quinn's extremely helpful book and learn more about how to get the most from your retirement savings.  The name and link to her book is: "How to Make Your Money Last."

If you learn everything you can about handling your retirement savings, invest your money wisely, and avoid unnecessary fees and other expenses, you should be able to maximize the amount of income you will have during retirement, without running the risk that you will run out of money.  Preparing in advance and investing your assets wisely will save you a great deal of stress as you age.

For those who want to learn more about wise financial planning during retirement, Social Security, Medicare, where to retire, common medical problems (including dementia) and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional helpful articles.

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

Photo credit:  Graphic courtesy of Pixabay

Your Retirement Savings Can Last for Decades - Learn How

The single issue which concerns nearly everyone on the brink of retirement is how they can be sure the money in their retirement account will last for the remainder of their life.  This is a significant and understandable reason to worry.  No one wants to reach their 80's or 90's and realize they have run out of money.  As a result, AARP teamed up with personal finance expert Jane Bryant Quinn to come up with a simple way to make sure your money lasts as long as you do.

Start with Your Guaranteed Income

Almost everyone in the United States will have a certain amount of guaranteed retirement income, even though it may not be enough for you to completely depend on.  The most common source of this income is Social Security. However, if you worked for a school or government agency, you may have a state or federal pension instead.  In addition, you may have a private pension, an annuity, income from rental property or some other source of regular, reliable income.  If you have not yet retired and your guaranteed retirement income seems to be very small, you may want to work a few more years in order to enhance the amount of guaranteed income you will have for the rest of your life.  At age 70, workers will have maxed out the amount of Social Security benefits they can receive; at age 65, their spouse will have maxed out the amount they can receive in spousal benefits.  There is no point in waiting to collect your benefits past these ages.

If your savings and assets are limited and your Social Security or other pension is small, arrange a personal appointment with someone in your local Social Security office and with your Department of Social Services.  You may be able to increase your guaranteed basic income and benefits by qualifying for Supplemental Security Income (SSI), SNAP (food stamps), or low-cost senior housing assistance.  These extra benefits are available to low income citizens and you have paid for them through your taxes, so there is no reason not to take advantage of them.  If you qualify, they can go a long way towards helping you have a modest, but survivable retirement.  

Total Up the Amount in Your Savings and Retirement Accounts

Once you have worked as long as possible and secured the highest level of Social Security benefits you can, it is time to evaluate how to make the money in your retirement savings accounts last the rest of your life.  If you have been saving a portion of your income in a 401(k) or IRA during your working years, you will be able to use income from that money to supplement your Social Security, pension or other sources of guaranteed income.  Total up the amount of cash you will have to work with upon retirement.

In addition to the money in your retirement savings accounts, you may decide to sell your current residence and downsize to a smaller home when you retire.  In some cases, this move may also give you extra cash which can be used to supplement your retirement income.  There may also be other non-income producing assets you can sell, such as coin collections, jewelry you no longer wear, or similar valuables. Pool together all the cash you can, total it up, and see how much money you will be able to put to work.

Set Aside a Cash Cushion

Take a portion of your cash savings and set it aside for emergencies, upcoming expenses, or large medical bills. If you live another 20 to 30 years after retirement, it is likely you will need to tap into this cushion occasionally to cover surprise bills you may have above your normal monthly expenses.  Sooner or later, you may have to replace a hot water heater or pay a large medical deductible, and you want to be prepared. You do not want to deplete your other assets in order to do this.  Use this emergency cushion carefully. You should avoid burning through it during the first few years after you retire, especially on something like a big trip.

If there is a dream trip you want to take after you retire and you feel you can afford it without wiping out your retirement savings, set aside some travel money at the beginning of your retirement and do not exceed this budget.  Remember, it will be difficult, if not impossible, to replace any money you spend after you retire.  Use those funds carefully.

Invest the Remainder of Your Cash 

Jane Bryant Quinn, the AARP expert, recommends that the ideal way to invest your savings and assure yourself of an income for the remainder of your life is to invest half of it in low-cost index mutual funds or exchange-traded funds that hold stock in large companies and put the other half in Treasury bond funds.  (As an aside, this blog has reported in the past that Warren Buffet also recommends that retirees invest a substantial portion of their retirement savings in low-cost index mutual funds.  It seems like good advice for most people.)

If you are unsure about which investments would be right for you, you may want to purchase Jane Bryant Quinn's book, "How to Make Your Money Last."  It offers excellent advice.  

Follow the Four-Percent Rule

The four-percent rule is one which many financial experts recommend for most retirees.  This system allows you to use four percent of your retirement savings the first year after you retire.  You can increase your withdrawal rate by the amount of inflation each year.  For example, if you have $100,000 invested, you can spend $4,000 the first year.  Then, increase the amount you withdraw by the inflation rate for that year.  If inflation is 3 percent, you can withdraw $4,120 the next year.  Even if the market has ups and downs, this system should assure you that your money will last 30 years or longer, because your withdrawals will be at least partially replaced by the dividends and interest you receive on the principal.

If you decide to avoid the stock market and put your money only in bonds and CDs, you will have a lower return and may have to change the four-percent rule, discussed above, to a three-percent rule.  This works exactly the same, but you start with a lower withdrawal rate of 3 percent.  In other words, for every $100,000 invested, you can withdraw $3,000 the first year.  If inflation is 3 percent, you can withdraw $3,090 the next year.  This very conservative approach is another way to assure yourself that you will have supplemental income for the remaining years of your life.

The one thing you do NOT want to do is to begin retirement by taking more than four percent from your retirement savings, unless you have stock investments which are doing exceptionally well and you feel certain you are not putting your future financial security at risk. Even then, you should not take more than 4.5 percent.  If you withdraw more than that, you must be prepared to also cut back your withdrawals during times when the stock market falls. If you do not want your income to fluctuate in this way, stick to a withdrawal rate of 4 percent or less.

Rearrange Your Lifestyle to Fit Your New Income

Now that you know what your income will be from your retirement savings, add that to your Social Security or pension.  Compare the total to your realistic retirement budget.

If your Social Security and other guaranteed income, when added to four percent of your retirement savings, totals less than your current income, you may have to make some changes to your lifestyle.

As mentioned above, you may need to downsize to a smaller, less expensive home.  The advantage of this is that other housing related expenses, such as property taxes, utilities and maintenance, would also be lower.

You and your spouse may also find it advisable to adjust to sharing one car, or one of you may decide get a part-time retirement job.  You need to make adjustments so your retirement expenses and income match.

If it seems impossible to match your income to your desired lifestyle at the age when you planned to retire, you may decide it would be best to wait to retire until you have paid off your mortgage or until your Social Security benefits or pension would be larger.

It will be much easier and less stressful to start out retirement with a lifestyle which fits your new income, rather than try desperately to maintain your current lifestyle, even when your income and assets do not justify it.   A few hours of planning will save you years of grief in the future.

Make Sure a Surviving Spouse can Maintain this Lifestyle

What happens when you or your spouse passes away?  Will the other spouse be able to survive financially?  Before you finalize your retirement plans, make sure both you and your spouse will be financially secure even after one of you dies.  Calculate the guaranteed survivor income plus the investment income each of you would receive individually after the death of a spouse. Make sure this reduced income will cover the fixed expenses each of you would still have for items such as mortgage payments, property taxes, utilities, car payments, food and medical bills.  If the income of either of you would not be adequate to survive individually, come up with a plan to compensate for the difference.

You may want to start your retirement off by spending even less than the 4 percent rule would allow.  This would allow your assets to grow. Purchasing life insurance policies might also be an option for some couples.  Plan ahead and decide how each of you will deal financially with being widowed. This will reduce some of the stress when the time comes.

Jane Bryant Quinn goes through all this in even greater detail in her helpful book, available here from Amazon, "How to Make Your Money Last." 

Relax and Enjoy Your Retirement

Financial worries have been shown to increase the risk of death, so it is important for every couple and individual to carefully evaluate their situation before retirement.  Once you have made the necessary adjustments so you are confident your money will last the rest of your life, you will be able to relax and truly enjoy your remaining years.

If you want to learn more about financial planning, Social Security, Medicare, where to retire, common health problems and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

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

Photo credit:  Google Images - Fool.com

Keep Your Drivers License as Long as Possible

Most senior citizens in the United States hope to continue to drive as long as possible.  As a resident of an over-55 active adult community, many of my neighbors in the 80s and, in some cases, their 90s are still driving.  Others, however, have lost their driver's licenses or simply given up driving their own cars.  If you hope to be able to drive as long as you possibly can, there are a few facts you should know in order to continue to enjoy the freedom of driving.

Car Crash Deaths for People Over 70 Have Decreased

According to the Insurance Institute for Highway Safety (IIHS), the number of people age 70 and over who have been killed in crashes decreased by 18 percent over the past two decades.  People in that age group were involved in fewer crashes per mile traveled, too.

One reason for this good news is that cars are safer than ever before.  Side-impact protection, including side airbags, have contributed to better safety for older drivers.  More people are able to walk away from accidents which would have killed them in the past.

Another factor in the better driving outcomes is that many older people are healthier and are able to function better than people of the same age a few decades ago.

How to Maintain Your Driving Ability

Despite the reduction in car crash deaths, it is still important for senior citizens to do everything they can to maintain their driving skills at optimal levels in order to keep their drivers' licenses.  Below are a few ways to do that:

Review the Warnings on Your Medications:  Do you take any medications which make you drowsy or warn against operating machinery after taking it?  Check with your doctor and find out if those medications can be taken before bed rather than at a time when you might need to drive your car.  You may also want to ask if there is an alternative drug which will make you less groggy.  Your doctor might also suggest that you avoid certain situations, such as driving at night.

Take a Driving Course:  We all need to brush up on our driving skills and recent changes to the laws in our state.  You may find it helpful to periodically take a class designed specifically for older drivers.  AARP offers these courses throughout the United States.  Your insurance company may even give you a discount for taking it.  You can find more information about these classes at:  aarp.org/drive

Purchase a Safer Car:  You can keep yourself safer when you drive if you upgrade your older vehicle to a newer one which has a rearview camera to help you see while backing up, automatic emergency braking, collision warning systems, and blind spot or lane-departure warning systems.  All of these features are designed to help you avoid collisions.

Hire a Consultant if You have Become Nervous or too Scared to Drive:  A Driver Rehabilitation Specialist can help you feel more secure when you are behind the wheel.  They can assess your current skills, offer advice, and suggest vehicle modifications which could make driving more comfortable for you.  In some cases, you can get a senior discount or your health insurance may cover the cost of the evaluation.

When to Stop Driving

Eventually, nearly everyone will have to give up driving.  When should you turn in your car keys?  Without question, you should stop driving if you have uncorrected cataracts, severe arthritis which makes it difficult to control the car, or if you have been diagnosed with Alzheimer's disease.  You should also consider giving up your car keys if you have severe sleep apnea which leaves you exhausted during the day, or if you are prone to seizures or other health conditions which can come on suddenly, such as sudden drops in your blood pressure or blood sugar levels.

You should also stop driving when you have too much difficulty reading the street signs, if driving makes you feel anxious or stressed, or if you cannot look over your shoulder to change lanes.  You should also do some soul searching about your ability to drive when your friends and family members begin to express concern about being in the car while you drive.

Until you reach this point in your life, follow the suggestions above to continue to drive and enjoy your freedom as long as possible.

If you are interested in learning more about common medical problems as you age, travel, Social Security, Medicare, where to retire, financial planning and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

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

Photo credit:  morguefile.com