Home Safety Modifications for Senior Citizens

The vast majority of Americans plan to continue to live in their pre-retirement homes as long as possible.  In order to make that possible, many of them will need to make a few modifications to their homes so they are more accessible and safer.  Some of the modifications may be minor and can be done by the homeowner.  Others may require hiring a contractor.

Whether you do it yourself or hire someone to make the changes for you, the safer you can make your home the less likely you are to have an accident and be injured.  This is important because, according to the Centers for Disease Control, every year one out of three adults age 65 and older will experience a fall. Below is a list of common modifications and suggestions for hiring a reliable contractor so you will be able to safely stay in your home as long as possible.

Common Home Safety Modifications

Power stair lifts - If you own a two-story home and do not have a bedroom and full bathroom on the main floor, a power stair lift may make it easier for you to stay in your home even if you have surgery or find it difficult to climb stairs for other reasons.  Stair lifts can be expensive, so talk to several companies before making a decision.  Despite the cost, installing one will probably be cheaper than moving.

Grab bars in the shower or tub - If you add bars to the shower wall and an inexpensive shower chair, you can more easily continue to enjoy showers with less fear of slipping and falling.  A professional may be required to secure the bars to the wall, so it is done without cracking your tiles.

Walk-in tub - For those who prefer a bath to a shower, a walk-in tub is much safer than a traditional tub which requires you to step over the edge to climb in and out.  Contact several companies and try sitting in the tubs in the showroom before making your final selection.

Hand rails in hallways and stairs - If you have stairs around your home, make sure you have handrails to hold onto as you age.  Be especially aware of short outdoor stairs which often do not have rails alongside them.   A simple rail installed next to the stairs can make it much safer for you to use the steps.

Wheelchair / walker ramps - If the only way to currently enter your home is by using stairs, you may want to add a ramp so it will be easier to enter if you ever need to use a wheelchair or walker, even temporarily.  You do not want to wait until you need a ramp before you consider adding one.

Lower counters in kitchen and bathrooms - For the same reason you do not want to wait until you need them before you lower your kitchen and bathroom counters, you may want to investigate the idea of lowering yours before you find yourself using a wheelchair.

Changing door and cabinet knobs to levers - Levers are easier to use if you develop severe arthritis in your hands.  They are also attractive and easy to install years before you need them.  If you are handy, you may be able to handle this improvement yourself.

Widen doorways to accommodate a walker or wheelchair - There are narrow wheelchairs which can go through nearly any normal doorway.  However, if you are a very large person or have an unusually narrow door or tight space, you may want to see if you could widen the openings.  You may even consider making changes to your floorplan to open up the living area of your home.

Electrical Alterations - If you bring a contractor into your home to do other work, you may also consider asking them to raise your outlets and lower your light switches so both are easier to reach if you loose some of your mobility.

Make Simple Changes to Prevent Tripping - If your floors are covered with an assortment of rugs, you may consider removing them or using rubber mats under them to prevent their movement.  In addition, look for any other dangerous situations in your home, such as electrical wires and extension cords which you have to step over.  Change anything that could be dangerous in order to reduce your fall risk.  For example, instead of wearing normal socks in the house, it may be safer to wear indoor shoes or special socks with knobby, rubberized bottoms, which are not as slippery.  Take a long, hard look at your home and lifestyle, then do everything you can to reduce or eliminate dangerous situations.

How to Find a Reliable Contractor

For those home improvements which you are not able do yourself, you will need to hire a contractor.  However, you want to make sure you choose someone who is familiar with the Americans with Disabilities Act and is a Certified Aging in Place Specialist.  You can get a list of these contractors in your area from the National Association of Home Builders at NAHB.org.  The person you hire should be able to evaluate the safety of your home and make a variety of suggestions in a range of prices.

In addition, call your State Contractor License Board to see if they have any additional information about the contractors in your areas.  Once you select a contractor, ask for their license number and verify its status with the board.  Do NOT use an unlicensed contractor.

Get at least three bids before making a final decision.  This could save you money.  At the same time, you do not necessarily want to use someone whose bid is dramatically lower than the other bids, unless you understand specifically why they are able to do the work so much more cheaply than their competitors.

Learn more about home modifications from the National Resource Center on Supportive Housing and Modifications at www.homemods.org.

If you are interested in learning more about how to safely retire in your own home, common medical problems, other places to retire, financial planning, Social Security, Medicare and more, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.


Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which is due to be released by Griffin Publishing early in 2018.

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

Photo credit:  morguefile.com

Choose a Financial Planner or Advisor with Experience

While many people do not want to admit it, very few of us are experts at handling our own retirement investment accounts.  It is difficult for us to fully understand all the different choices in mutual funds, annuities, dividend paying stocks, growth stocks, life insurance and other investment options which are available.  In addition, even fewer people fully understand the tax and estate planning implications of the different investment choices.  As a result, it is very important to choose a financial planner or advisor who is qualified to give us the investment advice we need.

Investment Advisor Certifications

First of all, you will want to choose someone who is experienced, has completed a course of study, passed a challenging exam and is fully certified.  There is literally an alphabet soup of designations for financial advisors and you will want to confirm your advisor has at least one of them. This is by no means a complete list, but some of the common types of certifications are:

Certified Financial Planner (CFP) - They must complete a program which covers stocks, bonds, taxes, insurance, retirement planning and estate planning.

Chartered Financial Analyst  (CFA) - Their courses of study include accounting, economics, portfolio management and security analysis.

Investment Advisory Representative  (IAR) - Like the others, they must take classes and pass an exam.  They are also required to register with the SEC.  They give advice on investing in stocks, bonds, mutual funds and other types of investments.  They may also manage portfolios.

As mentioned above, there are also other types of certifications. Some advisors may have more than one designation.  It is important to make sure the advisor you use is properly registered, is in good standing with the government agency which regulates them, and adheres to a code of ethics as a fiduciary, which means the advisor will put your interests above their own.

Questions to Ask Your Investment Advisor

You will want to get recommendations from friends, your lawyer or your CPA when you choose your investment advisor.  Find out how much experience they have and if their clients have been satisfied with their service.

Once you have found an investment advisor whom you trust, you need to ask them an assortment of questions which will help you decide if they have your best interests at heart and if they can provide the services you need:

1.  How do they get paid?  What fees and commissions can you expect to pay?  How often?  Will you pay a quarterly management fee or will you pay a commission for each transaction?  Which will be the better value for your account?

2.  Will they manage your portfolio prudently?  Will they keep your costs to a minimum?  Will they diversify your investments and re-balance your portfolio periodically?  Do they avoid conflicts of interest such as steering you towards certain types of investments which would pay them higher commissions?

3.  Are they willing to work with your attorney to help with your estate planning?

4.  Are they willing to coordinate with your CPA to help you decide the type of IRA you should have, when you should take investment losses and when you should make charitable contributions?

5.  Can they help you set up a stream of income during retirement?  Will they help you decide the best time to take your Social Security?  Will they help you learn how much you are required to withdraw from your IRA each year and how to make your IRA last as long as possible?  Will they help you plan a realistic retirement budget?

What You Cannot Expect from a Financial Planner

No matter how experienced and careful they are, there are a couple of things you cannot expect from your financial planner.

Do NOT expect them to be able to time the stock market.  The best experts in the world can rarely guess when the stock market has peaked and when it has hit its bottom during a recession.  The best you can hope for is that they can help you survive recessions with most of your assets intact ... while maximizing your income when times are good.

Do NOT expect them to magically cut your taxes.  There are only so many legal and wise deductions you can take.  It does not make sense to cut your taxes by making foolish decisions such as intentionally taking out an excessively large mortgage, choosing a bad investment in order to get a tax loss, or giving more money to charities than you can afford.

What are Your Responsibilities in Working with a Financial Planner?

It is just as important for the client to be honest in their financial dealings as it is for the financial planner to be honest.  A planner does not want to be pulled into a shady investment scheme because, in the long run, it will not benefit either of you.

In addition, you should pay attention to your portfolio and consider the suggestions of your financial planner thoughtfully.  You should also carefully review your statements and transaction confirmations.  Sometimes, even when you and your planner do everything right, the traders or corporate offices for the company could make an error.  When this happens, you want to catch it as quickly as possible. It is your money, so you need to pay close attention to what is happening in your portfolio.

If you pick a planner carefully, have reasonable expectations, and do your part in following your money, you will get the most value out of having a professional financial advisor manage your assets.

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

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which will be published by Griffin Publishing in 2018.

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

Photo credit:   www.morguefile.com

2018 Social Security COLA and Medicare Premium Increases

Most retirees in the U.S. have been hoping they would finally get a meaningful increase in their Social Security checks in 2018.  Over the past few years, most retirees have seen such small cost-of-living increases in their Social Security that the benefit was eaten up by rising Medicare premiums and other expenses.  Unfortunately, for the vast majority of retirees, this year will be no different.

The Social Security Administration recently announced the COLA for 2018 will be 2 percent.  For someone receiving $2600 in Social Security benefits (near the top of the range), this will amount to $52 a month, bringing their total benefit to $2652.  However, as you will see in the details below, beneficiaries will not be able to keep all of that increase.

For someone currently receiving the average benefit of $1330 a month, their COLA will amount to approximately $26.60, raising their monthly benefit to $1356.60. Unfortunately, typical beneficiaries will only be able to keep a tiny portion of that increase.

While receiving any increase in income sounds positive, the truth is that most retirees should not expect to see a meaningful net increase in their Social Security benefits in 2018.  This is because the amount which will be deducted for Medicare premiums is expected to rise to $134 a month.  Many current Medicare beneficiaries only pay between $109 to $112 a month.

If your Social Security benefit is so low that deducting $134 a month would actually reduce the size of your current benefit check, then the Medicare premium will be adjusted so you will not pay the full amount until your Social Security benefit is high enough in the future to absorb the full $134, and that is assuming Medicare premiums do not rise more in future years.

You could also have a larger increase in your Medicare premiums for another reason, and that is if your income went up significantly last year.  Sudden increases in retirement income, because of an unusually large IRA withdrawal or windfall, can cause your Medicare premiums to increase dramatically and retirees should consult their tax attorney and take into consideration all of the financial consequences of a large IRA withdrawal or income increase. However, the Medicare premium increase should only apply to the year following the increase in income, unless it is permanent or continues for several years. This will only apply, however, to people who have a very large increase in their retirement income.

Below are details of what most people can expect regarding changes to the typical Medicare premium:

If your Current Social Security Benefit is $2600 a month:

Current Social Security: $2600.00
Current Medicare cost:     -112.00
    Current Income:          $2488.00

2018 Social Security:     $2652.00
2018 Medicare cost:          -134.00
    2018 Income:              $2518.00

Net extra income is $30 a month

If your Current Social Security is $1330 a month:

Current Social Security:  $1330.00
Current Medicare cost:       -109.00 
    Current Income:           $1221.00

2018 Social Security:      $1356.60
2018 Medicare cost:           -134.00
    2018 Income:               $1222.60

Net extra income is $1.60 a month

Obviously, the exact amount you will receive in your 2018 checks will depend on what you currently receive and whether or not you have your Medicare deducted from your Social Security benefits.  (About 30 percent of beneficiaries do not have Medicare deducted from Social Security, either because they participate in a public employees pension plan instead of Social Security or because they have delayed collecting their Social Security benefits).   However, it is important to note that no matter how much Social Security you currently receive, your 2 percent COLA is likely to be much less significant than what you probably hoped to receive in 2018.

If you have a high income, which is defined as $85,000 for an individual or $170,000 for a couple, your Medicare premium will be even higher than $134.

You can get more details about how things will change in 2018 at medicareresources.org.

Expect Additional Increases in Medicare Co-Pays and Drug Prices

In addition to higher Medicare premiums, beneficiaries may also pay higher Medicare co-pays and drug prices, depending on their plan.  Annual maximum out-of-pocket expenses could rise for some beneficiaries, as well.  Check your Evidence of Coverage schedule from your plan administrator to see how you will be affected.

If you have a Medigap plan, you could also pay higher premiums for your extra insurance, depending on your specific plan and insurance carrier.

The bottom line is that most Social Security recipients will continue to see their net income fall behind the rate of inflation, since any small amount they may receive is unlikely to be enough to offset the higher cost of food, utilities, automobile fuel and other necessities in 2018.

Once again, Social Security recipients should expect to do more belt tightening.

If you are interested in learning more about Social Security, Medicare, financial planning, where to retire, 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 helpful articles.

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, due to be released by Griffin Publishing in 2018.

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

Photo credit:  Kaiser Family Foundation at KFF.org

Medicare and Cancer Benefits - Prevention, Diagnosis and Treatment

On occasion, this blog allows guest experts to submit a post on a complicated topic.  This week, I am delighted to have a post on how Medicare will cover the prevention, diagnosis and treatment of cancer.  The post also goes into detail on the differences in your coverage if you have a Medigap or Medicare Advantage plan.

This post on Medicare and cancer benefits was written by Danielle Kunkle, the co-founder of Boomer Benefits, an insurance agency specializing in Medicare-related insurance products in 47 states. Her contact information is included at the end of this article.

Medicare and Cancer Benefits

If you have cancer or a family history of cancer, you may have concerns about how Medicare will cover treatment of cancer. Treatment for cancer can be expensive, but Medicare will be an enormous help with diagnosing and treating this health condition.

Medicare provides a wide range of cancer services from preventive care all the way to surgery and chemotherapy. Understanding Medicare’s coverage of cancer treatment starts with first understanding the parts of Medicare.

Original Medicare Parts A and B

Part A is your hospital insurance. It will pay for hospitalization, skilled nursing, blood, home health care and hospice.

Part B is your outpatient insurance. It covers doctor visits, lab-work, durable medical equipment, surgeries, ambulance and many other medical services. In relation to cancer, Part B will also pay for chemotherapy, radiation, second opinions before surgery, drugs administered in a clinical or hospital setting, and physical therapy or rehab care.

Medicare Part B also provides mental health care to deal emotionally with your diagnosis and preventive care screenings, such as mammograms, cervical screenings, prostate exams and colonoscopies.

Medicare Part D Drug Coverage

Part D is for your retail prescription drugs. Although Part D is optional, it is really very important when it comes to cancer care. This is because some cancer medications and anti-nausea medications are now in an oral form which you pick up yourself at a pharmacy. You will want good coverage for these potentially expensive medications.

Your Part D pharmacy card will provide drugs to you at a copay level instead of you paying full price. Most importantly, all Part D plans provide catastrophic coverage. After your spending reaches a certain annual limit, the insurance company then must pay 95% of the cost of your medications for the rest of the year.

Common Questions Regarding Medicare and Cancer

Here are some of the most common cancer questions we receive in relation to Medicare’s coverage of cancer treatment.

Is Immunotherapy covered by Medicare?

Immunotherapy is a form of treatment which helps the body’s immune system fight cancer. Medicare Part B provides coverage for most intravenous medications which are considered reasonable and necessary. Check with your doctor before beginning treatment.

What will be my cost for cancer treatment under Medicare?

You are responsible to pay for your hospital and outpatient deductibles, which are set by Medicare each year. You are also responsible to pay 20% of the cost of your Part B services. There are Medigap plans available which pay after Medicare pays its share. The one with the most comprehensive coverage is Plan F, which will cover 100% of your cost-sharing responsibility.

Medicare beneficiaries can enroll in any Medigap plan without health questions during the first 6 months after their Part B effective date. There are no pre-existing condition exclusions or waiting periods if you apply during this Medigap open enrollment period.

If a Medigap plan is not in your budget, another alternative is Medicare Advantage. Also called Part C, Medicare Advantage plans are private plans which pay instead of Medicare. These plans usually have a network of doctors from whom you will get your care. Some plans require you to choose a primary care doctor who can then refer you to your oncologist and other specialists.

Medicare Advantage plans often have lower premiums than Medigap, but you will pay copays for your various treatments as you go along. As long as you apply during a valid election period and live in the plan’s service area, most people with Original Medicare can get approved for a Medicare Advantage plan. There is only one health question about end-stage renal disease which could prevent you from being covered under a Medicare Advantage plan.

Which cancer doctors can I see while on Medicare?

Medicare has over 800,000 providers. Many cancer treatment centers and specialists participate in Medicare. Visit Medicare’s website to find a list of participating providers.

How Do I Know if a Drug is Covered by Part B or Part D?

Part B typically covers drugs which are offered in intravenous form. However, if your doctor prescribes an oral version of one of these medications or an anti-nausea medication, Part B may cover it. Your doctor must give it to you within 48 hours of your cancer treatment.

If you take a drug which only comes in oral form, your Medicare Part D drug plan will likely cover it. Should you be prescribed a drug that is not on the formulary, your doctor can file an exception with your drug plan to request coverage for it.

Does Medicare cover second opinions?

Sometimes cancer patients want a second opinion before a surgery. Medicare Part B does cover this at 80%. Most Medigap plans will cover the other 20%. If you are enrolled in a Medicare Advantage plan, check your plan’s summary of benefits to determine what your copay will be for this doctor visit.

Author Bio

Danielle Kunkle is the co-founder of Boomer Benefits, an insurance agency specializing in Medicare-related insurance products. They help baby boomers new to Medicare learn about their benefits and coverage options across 47 states.  You can reach her at dkunklebb@gmail.com or 1-855-732-9055.

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

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which will be released by Griffin Publishing in 2017.

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

Photo credit:  Google images

Safety Rules for Grandchildren

Many of today's grandparents are very involved in the lives of their grandchildren.  Three million grandparents are currently raising their grandchildren; millions more regularly babysit them. However, at the 2017 Pediatric Academics meeting, the attendees discussed the fact that many safety rules have changed over the past few decades and grandparents could be unintentionally putting their young grandchildren at risk.  Whether you are actively raising your grandchildren or occasionally babysitting them, it is important to learn the new rules for keeping them as safe as possible.

Why Grandparents Are Not Aware of Safety Recommendations

Grandparents are often confused by the changing recommendations. Young parents are constantly bombarded by new recommendations on how to keep their children safe.  Grandparents, however, are only rarely included in the visits to pediatricians and they are even less likely to have conversations with their peers about the best way to feed, transport and care for an infant.  As a result, they are frequently left out of the loop when new suggestions are released by experts.  In addition, some grandparents are resistant to the idea that things have changed since they raised their kids and they need to change their child-rearing ideas, too.

Modern Safety Recommendations for Infants and Young Children

1.  Today's pediatricians recommend that babies be put to sleep on their back, not on their sides or stomach as they were in the past.  Caregivers should not put blankets, toys or pillows in the crib with an infant. Making these changes can reduce the risk of SIDS (Sudden Infant Death Syndrome), which is the leading cause of death for infants between the ages of one month and one year.

2.  If a child is burned, butter is not the proper treatment for it.  If the burn is severe, call the child's pediatrician or take the baby to the emergency care or urgent care center nearest your home.

3.  Injuries should be cleaned and covered with a bandage to reduce the risk of infection.

4.  When a child has a fever, they should NOT be put in an ice bath, although this treatment was common 30 or 40 years ago.  Today's experts point out that this treatment can drop the body temperature too much and cause hypothermia.

5.  Infants should be transported in a rear-facing car seat as long as possible.  Toddlers should ride in a forward facing car seat with a five point restraint system. Older children can use booster seats after they outgrow their car seat.  The exact age and size of the children in each type of seat varies from state to state, so make sure you know the requirements for your state.  Before you offer to car pool with another parent or grandparent, make sure your vehicle can accommodate all the necessary car seats and booster seats.  Many cars can only accommodate a maximum of two car seats in the back seat. Children cannot ride in the cargo area of an SUV or station wagon, which was common a few decades ago.  Below are the laws in the State of California, according to the California Highway Patrol website in 2017.  The laws may vary slightly in the state where you live:

2017 California Child Safety Seat Laws

• Children under 2 years of age shall ride in a rear-facing car seat unless the child weighs 40 or more pounds OR is 40 or more inches tall. The child shall be secured in a manner which complies with the height and weight limits specified by the manufacturer of the car seat.
• ​Children under the age of 8 must be secured in a car seat or booster seat in the back seat.
• Children who are 8 years of age OR have reached 4’9” in height must be secured by a safety belt.
• Passengers who are 16 years of age and over are also subject to California's Mandatory Seat Belt law.

How Grandparents Can Stay Up-to-Date on Childcare Recommendations

The rules above are just the tip of the iceberg, and new suggestions for proper child and infant care are released frequently, including when to begin feeding solid foods to an infant, the types of food they should eat, and the products which are safe to use on an infant. As a result, if you are raising a grandchild or occasionally babysit one, it is important you stay current.  Go to well-baby checkups at the pediatrician's office, if possible.  In addition, attend parenting meetings and read current books and magazines on child rearing.

Below are a few sites where you can learn the latest childcare recommendations:

American Academy of Pediatrics Healthy Children Website

Parents.com

Parenting.com

For Car Seat Laws, check your state Highway Department website

If you are interested in additional information for grandparents, or tips for senior citizens, including where to retire, financial planning, Social Security, Medicare, 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.

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which is being published by Griffin Publishing in 2018.

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

Photo credit:  morguefile.com

How to Hire a Home Care Agency

At some point, nearly everyone who lives long enough is going to need a little extra help.  If you or your loved one does not need to live in a skilled nursing or memory care facility, a home caregiver may be able to provide all the assistance you or your family member needs.  Whether you are hiring the person for yourself, a spouse or a parent, what are some of the issues you need to consider in choosing the right caregiver and agency?

Choose a Licensed Caregiver Agency

Although it may be tempting to hire a private individual as a caregiver, it can be a risky move.  Most district attorneys and law enforcement officials have dealt with cases in which valuables or money were stolen by unlicensed, private caregivers.  In addition, an unlicensed caregiver is more likely to ask for "loans" or not be qualified to provide proper care, especially in an emergency.  They may have had little or no training or experience in dealing with medications, lifting people who have fallen, knowing when to call 911 or handling other situations.  A better solution is to deal directly with an agency which is bonded and responsible for training and assisting you in choosing the appropriate employee for your situation.

What to Look for in a Licensed Caregiver Agency

The State of California has a Home Care Services Consumer Protection Act which requires agencies to meet certain requirements.  Even if you live in another state, these are guidelines you should look for in any agency you may choose to employ:

*  They should conduct background checks on their employees
*  They should provide an employee dishonesty bond
*  They should provide training (although in California only 5 hours are required)
*  They should carry liability insurance
*  They should keep records on any reports of suspected abuse
*  They should provide workers compensation coverage for their employees

What to Look for in the Caregiver Who Comes to Your Home

Whether you are hiring the caregiver for yourself or a family member, you want to make sure they will be a good fit and able to handle the job.  You should insist on meeting the caregiver before they begin working alone with you or your family member.  There are certain issues to consider:

*  You need to recognize that a caregiver is NOT there to provide medical care.  The caregiver is employed to provide needed assistance with activities of daily living such as grocery shopping, cooking, feeding, bathing, dressing, dispensing medication at the appropriate times, or moving the client from the bed to a wheelchair or making similar transitions.  They may also drive them to medical appointments and social engagements.

*  The caregiver should be a self-starter, recognize when something needs to be done, and be willing and energetic enough to do it.

*  The ideal caregiver should have a caring personality.  They should smile often, be willing to give a hug occasionally, listen to repetitive stories, and laugh at the funny ones.  Since they may be the only person their client sees regularly, they need to be able to fill of the role of both caregiver and friend.

*  They should be willing and able to keep their client as active as possible, helping with their physical therapy exercises and enabling them attend their favorite social events or fitness classes.

*  The caregiver should be observant and intuitive, able to recognize when "something doesn't feel right."  They should be comfortable letting other family members or medical personnel know if they suspect there is a problem and be ready to call 911 in an emergency.  They should also be good communicators and able to explain any changes they see. 

*  They should be diplomatic and discrete in dealing with other family members, especially if their client is dying, goes on hospice or becomes stressed when certain relatives are around.

What You Can Do to Help the Caregiver

Whether you hire a caregiver for yourself or a family member, there are steps you can take to make their job easier and more beneficial for the client.

* Give the patient the opportunity to have input in choosing the caregiver.  They are the one who will spend their days with this person and you want to hire someone they will enjoy being with.  The patient also needs to be involved in compiling the instructions which will be given to the caregiver, so they feel they still have ultimate control over how they will spend the final months or years of their life.
*  Provide the caregiver with a detailed list of medications and when each one should be taken.
*  Provide a list of the patient's favorite foods and recipes, as well as any mealtime preferences and food allergies.
*  Explain sleeping, television, music and other preferences to the caregiver.
*  Make sure the caregiver knows who is and is not allowed in the home with the client.
*  Have the physical therapist or other medical personnel show the caregiver any exercises the client should be doing, the proper way to move the person and other important details of their care.
*  Give the caregiver a list of emergency numbers ... family members, doctors, therapists, etc.
*  Put all this information and anything else which you think will be important in a binder which the  caregiver can refer to if they have any questions.  This is especially important because occasionally the caregiver may become ill and a substitute caregiver will take their place. 

You should also make arrangements to have bills paid, taxes done and other business matters handled by someone other than the caregiver.  The caregiver should not be expected to take care of these things, so another family member, conservator, or public guardian will need to handle these matters if you or your family member becomes unable to handle their financial affairs.

If you need more information about retirement planning, common medical issues, where to retire, Social Security, Medicare, changing family relationships and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which will be released by Griffin Publishing in 2018.

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

Photo credit:  morguefile.com

Social Security Myths and Misunderstandings

We have all read a host of discouraging news stories about Social Security, including that it is going bankrupt, people are living too long, and everyone should collect their benefits as soon as possible.  Many of these articles are unhelpful because they are based on distortions and myths about Social Security. These misunderstandings can cause people to make poor financial decisions which may hurt them for the rest of their lives.  As a result, I was pleased to see an article addressing these Social Security myths in the September 11, 2017 issue of the highly reputable business newspaper, Barron's.

You may want to look for the issue yourself at your local news stand or library.  However, here is a brief summary of what they had to say about the six most common myths about Social Security, as well as my comments:

Myth: "Healthy Payment Hikes are Back"

Although the COLA or cost-of-living increase for 2018 will be larger than what retirees have seen in recent years, when it has ranged from 0 to 0.3 percent, it is still smaller than the average increase of 2.6 percent which retirees saw over the past 30 years.  The 2018 COLA will only be 2 percent. Unfortunately, recent increases have been so low that the Senior Citizens League estimates Social Security benefits have lost 30 percent of their purchasing power since 2000.  While any increase at all is better than nothing, many senior citizens are finding that it is becoming increasingly more difficult to survive on Social Security.

Not mentioned in the Barron's article is the fact that all or most of the COLA in recent years has been eaten up by increases in Medicare premiums.  This will be true in 2018, as well, when the Medicare premium for most people will increase to approximately $134.  As a result, many retirees have seen virtually no actual increase in their checks over past few years and that will continue to be true in 2018.

In fact, Medicare increases sometimes jump if your total retirement income rises too much.  Sudden increases in retirement income, because of an unusually large IRA withdrawal or windfall, can cause your Medicare premiums to increase dramatically and retirees should consult their tax attorney and take into consideration all of the financial consequences of a large IRA withdrawal or income increase. However, the Medicare premium increase should only apply to the year following the increase in income, unless it is permanent or continues for several years. This will only apply, however, to people who have a very large increase in their retirement income.

Myth:  "Social Security is Going Broke"

There is NO danger that Social Security will completely run out of money, because people are continually paying into the program.  The trust fund, which supplements the amount brought in by current workers, has enough money to pay full benefits until 2033.  After that, the Social Security Administration could still pay out 77 percent of promised benefits until 2090 and 73 percent of promised benefits after that, just based on the ongoing payroll deductions of the workforce. Those lower payments would only happen if Congress does absolutely nothing to fix the problem. Most experts believe that if Congress increases the amount of Social Security taxes withheld from paychecks, slightly postpones the full retirement age or makes a few other small changes discussed later in this article, full benefits could be paid out for many decades in the future. 

Myth: "American Longevity is the Reason Social Security is Having Financial Problems"

This may surprise many people, but U.S. longevity for people over the age of 65 has not increased very much over the past few years.  In fact, the Barron's article reported that in 2015 longevity for Americans over 65 decreased for the first time in over 20 years, according to the Centers for Disease Control and Prevention.  In fact, according to an October 27, 2017 post by @Tad_Doughty, who manages several hundred million dollars in assets:

"The U.S. age-adjusted mortality rate -- a measure of the number of deaths per year -- rose 1.2 percent from 2014 to 2015, according to the Society of Actuaries.  That's the first year-over-year increase since 2005, and only the second rise greater than 1 percent since 1980.  At the same time that Americans' life expectancy is stalling, public policy and career tracts mean millions of U.S. workers are waiting longer to call it quits.  The age at which people can claim their full Social Security benefits is gradually moving up, from 65 for those retiring in 2002 to 67 in 2027."

In other words, people are retiring later and dying sooner.

The real problem in maintaining Social Security payments is that fewer children are being born and this will cause a sharp decline in the number of working adults by 2035.  This is the actual reason why it may be necessary to slightly increase Social Security taxes or make other changes.

Myth:  "Social Security is Too Dangerous for Congress to Touch"

The Barron's article indicated that this is a myth because Congress has made changes to Social Security in the past, most notably in 1983.  According to Barron's, any one of the following possible changes, or a combination of them, would solve the problem:

* Decrease the promised benefits by 20% for those who have not yet retired OR
* Increase the Social Security payroll tax, which is split between the employer and employee, from 12.4 percent to 15.2 percent OR
* Raise the income cap on Social Security taxes above its current level of $127,200. In 2018, the income cap will rise slightly to $128,700.  However, over 18 percent of earned income is currently exempt from Social Security taxes.
* Not mentioned in the Barron's article, but something which has been suggested by other experts, is the idea of further postponing the full age of retirement so that people are not eligible for their full benefits until age 68 in 2027 and the increase to age 67 be moved to an earlier date.

If citizens would like to save Social Security, they need to encourage Congress to vote on a Social Security package which would include one of the above changes or a combination of the above changes which would be less extreme than any single recommendation.  For example, they could raise the income cap to $200,000 or more, with significantly larger increases in the income cap in future years.  This would allow them to only slightly raise the payroll tax.

Myth:  "Start Collecting Your Benefits as Young as Possible

While it may be necessary for some people to collect early if they are dying or in such bad health that they can no longer continue to work, the vast majority of people need to worry more about how to maximize their income in their 70s and 80s.  The best way to do this is to postpone collecting as long as possible.  You can learn more about the advantages of waiting by using the benefits calculators on either the AARP or the Social Security websites.

The Barron's article also discussed confusion surrounding complicated schemes for maximizing your benefits by using the restricted application loophole.  However, this loophole only applies to people born prior to Jan. 1, 1954, many of whom are already collecting their Social Security benefits.  An earlier loophole called file-and-suspend has already been closed and the restricted application loophole will close over the next few years.  If the restricted application loophole interests you, you may want to do further research on the benefits of this plan and see if it will work for you.

The most important information which you may glean by reading the full Barron's article, titled "6 Myths of Social Security," is that the current Social Security problems are solvable, if Congress is willing to make the necessary minor adjustments.  In addition, most people would benefit by postponing their benefits as long as possible in order to maximize their income in their 70s, 80s and beyond, especially since the value of the benefits have declined dramatically in purchasing power over the past two decades.

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

Watch for my book, Retirement Awareness: 10 Steps to a Comfortable Retirement, which will be published by Griffin Publishing early in 2018.

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

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Financial Solutions for Retirement Problems

The best laid retirement plans can sometimes be derailed by a variety of financial challenges. Sometimes you simply may not have planned well.  You may have over-estimated your future income and underestimated your future expenses.  However, even if you have planned carefully and spent years trying to put something aside for retirement, a recession, high medical bills or a family emergency can result in a major setback.

The good news is that no matter what the reason for your financial problems, there are actions you can take to salvage your retirement. The most important thing you can do is face the issue head on and take action as soon as you realize you have a problem.  Below are a few common challenges which could hurt your retirement, along with possible financial solutions.

Not Enough Money in Your Retirement Savings Accounts

According to an article titled "Money Missteps" in the April 2017 AARP Bulletin, as recently as 2013 almost 30 percent of U.S. households headed by someone over the age of 55 did not have a retirement savings account or a future pension.  No money saved at all for retirement.

The sooner you recognize and deal with your financial shortfall, the better off you will be.  As frequently mentioned in other posts in this blog, you have a number of choices:  Continue working until age 70 before you start to collect your Social Security benefits, supplement your Social Security with a part-time job, downsize your home, move to a less expensive area, or get a reverse mortgage (assuming you have equity in a home.)  Most importantly, you want to avoid building up debt in order to finance your retirement.  Eventually, that will only make your situation worse.

You Have Retirement Savings But It is Dropping in Value

As we all discovered during the Recession of 2009, sometimes our retirement savings accounts can lose money faster than we ever expected.

Depending on your situation, you may want to talk to a financial planner to discuss your overall retirement plan and investment portfolio.  They could recommend moving your savings into a different mutual fund or into a safer, less volatile investment.  In addition, they may suggest you reinvest all the income from your retirement savings and add more money until you are able to re-build the value.   This could delay your retirement plans, but will probably be worth it in the long run.

You Have No Equity in Your Home

Some people hope they will be able to take out a reverse mortgage against their home equity to finance their retirement.  However, what can you do if your home has lost value and you now owe more than it is worth?

If you can afford the house payments and the house is in good repair, you may want to continue making payments until inflation and your payments rebuild your home equity.  It could take a few years, but might be worth it in the long-run.  If it is not an option for you to keep making the payments, you may be able to refinance your home through the Federal Home Affordable Refinance Program at harp.gov.  If you do not qualify, you could try to get your bank to agree to a short sale.  That is less damaging to your credit than waiting for foreclosure.

You are Buried in Debt

Unfortunately, some people experience a job loss, a serious medical problem, a natural disaster or other financial catastrophe in the years just before they hoped to retire ... or right after they have begun their retirement.  If they are too sick or too deeply in debt to recover, they may believe they have no hope to ever retire and/or may have to spend the rest of their life drowning in debt.

Medical bills are the most common reason for bankruptcy in the United States, especially for people who are near retirement age or who have already retired.  If you have suffered a severe financial setback which leaves you deeply in debt, bankruptcy may be the best option for you.  In fact, it may be the only way you can stay out of extreme poverty as you age, and the future financial stress could potentially worsen your health situation.  Talk to a lawyer and see if bankruptcy or debt reorganization is an option for you.  Many well-known figures have had to resort to bankruptcy in order to save their retirement.  Ordinary people should consider this option, as well, especially if you have so much debt that you know you will never be able to pay it off.

You Are Still Supporting Your Children or Grandchildren

An estimated 3 million people over the age of 60 are supporting their grandkids.  An estimated 60 percent of people over the age of 50 are financially supporting an adult child or other relative.  An unknown number of parents and grandparents extend some kind of financial aid to a family member on an irregular basis.  These numbers show that the vast majority of people who are retired or near retirement age are helping to support someone else.  If the burden of supporting other family members is derailing your retirement, you may need outside help in dealing with these problems.

If you are a grandparent supporting your grandchildren, in some states you may qualify to become the foster parent of your grandchildren, which would make you eligible to receive financial aid from the state.  In addition, you may be able to apply for housing vouchers, SNAP (food stamps), and other types of aid.  You are performing a lifesaving service for these children and should not be embarrassed to ask for financial help.

If helping your adult children or other relatives is putting your own well-being and retirement at risk, you may need to solicit assistance in setting boundaries with these people.  You can ask other relatives or your financial advisors to help you explain to these dependents why you are no longer able to give them money.  If you do decide to loan them money, put your agreement in writing and charge interest of at least 2 percent.  If they default, at least you will be able to deduct it as a "non-business bad debt" on your taxes.  However, your best bet is to avoid giving them money in the first place.

If your adult child or other relative is also in a bad financial situation, you may see if you can help them apply for various forms of financial aid ... housing vouchers, food stamps, disability, unemployment, welfare, SSI, etc.  If necessary, take them to your local social services department or homeless shelter to see if there are programs in your community which can help people who are homeless or nearly homeless get back on their feet.  Your goal is to make these relatives less dependent on you and more dependent on themselves or government aid.  After all, you will not be around to support them forever.  At some point, they need to have a plan to support themselves, even if that means they need to rely on disability and food stamps.

If you are looking for additional information about retirement planning, common medical problems, Social Security, Medicare and more, use the tabs or pull-down menu at the top of this page to find links to hundreds of additional articles.

If you want an overview of retirement planning tips, watch for my book Retirement Awareness: 10 Steps to a Comfortable Retirement, which will be available from Griffin Publishing in 2018.

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

Photo credit:  morguefile.com