Cryptocurrency and Retirement Planning - Is it Right for You?

Cryptocurrency is a topic which few Baby Boomers and older retirees understand.  It is an entirely new type of money, and many working adults wonder if it is something they should include in their financial planning.  As a result, this month's guest post by attorney Lyle Solomon should answer some of the questions you may have about cryptocurrency and help you decide if it is something you want to include in your investment planning.

As always, it is important everyone understands the risks involved in making any investment. This blog suggests you do thorough research before putting money into cryptocurrency. You may also want to read a book on cryptocurrency, such as the highly rated "The Only Bitcoin Investing Book You Will Ever Need" (Ad) or one of the other books on cryptocurrency (Ad) which are available, and make sure you fully understand this new type of currency before putting money into it.  It is also important to make sure your investment accounts are fully diversified into a wide variety of investments.  

With those thoughts in mind, I am sure that most of my readers will be very interested in this topic.  It contains very informative and helpful information about how you can get started investing in cryptocurrency. The guest post by Lyle Solomon is below.

How to Invest in Cryptocurrency for Retirement

by Lyle Solomon, attorney with Oak View Law Group

The cryptocurrency market has been maturing over the past few years. This is because of its newfound reputation as a meaningful long and short-term investment. For some people, cryptocurrency is the answer to the question, ‘how to deal with credit card debt?’ Furthermore, it is also becoming a valid retirement option.

Cryptocurrencies like Bitcoin have gained incredible momentum, proving itself to be a very profitable investment. Many still have reservations about its energy consumption and lack of regulation. But these issues pale in comparison to the 164% growth that Bitcoin experienced last year. For comparison, the S&P 500 and gold rose by 13% and 21%, respectively.

With the current state of the financial world, many young investors have decided to integrate cryptocurrencies into their retirement plans. More specifically, according to Core data research, 40% of millennials will add cryptocurrency to their plans. Therefore, the question is not if you should be investing in crypto for your retirement, but how.

Different Crypto-Related Retirement Plans

While there may be future alternatives, there are only three major options for retirement plans with cryptocurrencies. These include Crypto IRAs, Crypto 401Ks, or directly investing in cryptocurrencies yourself. Both IRAs and 401Ks will deal in Bitcoin, since it is easily the biggest token on the market.

Investing In Crypto Yourself

It is worth mentioning that you do not have to create a Bitcoin retirement account. Instead, you can simply buy the cryptocurrency of your choice, which in this case could be Bitcoin, and hold it. Most wallets do not have a limit on how long you can hold onto cryptocurrencies. So it is possible for you to simply do that until you retire.

Furthermore, by setting up a personal account, you will be able to completely cut out the middleman.  Most companies can charge you fees if you intend to take out money from a retirement plan before its duration.

You can also skip on contributing specific amounts to your account. Instead, you can take out money whenever you want and contribute as little or as much as you want. So if you are wondering how to deal with credit card debt, or other financial problems, you can take some of the cryptocurrency out of your account. 

Investing in crypto yourself also means that you can use third-party software to improve your financial position. But even if it does look very good, there are drawbacks to not getting an IRA or 401K. More specifically, you will have to pay more in the form of taxes if you decide to invest yourself.

You will also have to take responsibility for your own investments. So if the price starts to crash, no one will compensate you for it. 

A Bitcoin 401K

There is still a long time until bigger institutions start offering 401K plans with Bitcoin or other cryptocurrencies. But you can find smaller providers offering these types of plans. One of the most prominent providers is ForUsAll, which has entered a partnership with Coinbase. So customers that open a 401K account with ForUsAll will see 5% of their retirement funds go into a cryptocurrency account.

By definition, a 401K account allows employees to put aside a set percentage of their salary. The provider will usually take out the percentage before tax, and those funds then go into the retirement account. Your funds in the retirement account will be invested into mutual funds, bonds, and stocks as investments. And one of the other investments they can make on your behalf is Bitcoin.

Although they can make investments into other cryptocurrencies, no other provider offers that service. So in the meantime, a percentage of your retirement funds will go into Bitcoin alone, if you want to include a cryptocurrency in your retirement plans.

A Bitcoin IRA

Finally, the most popular option for investing in cryptocurrencies for retirement is through IRAs. IRA holders have the ability to choose where they would like to invest their retirement money. Many IRAs have already moved away from traditional forms of investments like stocks and bonds. Instead, some account holders choose to invest in precious materials as well as real estate.

Cryptocurrency IRAs work very similarly to regular ones. The major difference is that they are invested in cryptocurrencies. It is fairly similar to Roth IRAs in that you can pay the taxes upfront on the assets that you hold.

Since you will be paying the taxes upfront, you will not have to pay any taxes when you withdraw them, as they will hopefully have a higher value, then. A crypto IRA will also have a yearly contribution limit of close to $6,000, similar to other IRA plans.

There are three parts to a Bitcoin IRA. The first is the custodian. Their job is to manage funds in your account and ensure that you follow all IRS and government guidelines. The second is the exchange, which is where the account will be purchasing the cryptocurrency. Finally, the last part of an IRA is secure storage. You will need a place to store your retirement funds to protect them from hackers.

On the other hand, it might be worth mentioning the extra costs which come with a crypto-based IRA. Most providers will charge extra in terms of account management fees and setup fees. A good example to look at is Blockmint, a popular Bitcoin IRA. They will charge an annual maintenance fee of $195, along with a 1% selling fee, 2.5% purchasing fee, and 15% transaction fees.

Many of these self-directed IRAs also have more limitations compared to other plans. You might not be able to choose the asset that you want, or the exchange you want to buy it from. Moreover, unlike traditional IRAs, your provider will not offset capital gains by deducting your capital losses from a cryptocurrency.

Conclusion

Bitcoin and other cryptocurrencies are still very volatile, and that will not change anytime soon. This volatility also means that it carries significantly more risk than most other types of traditional investments. However, despite all of these very serious issues, it can still be a great investment for your future. So even if investing in cryptocurrency is not your answer to how to deal with credit card debt and other financial problems, it can still be useful during retirement.

About the Author: Lyle Solomon has considerable litigation experience as well as substantial hands-on knowledge and expertise in legal analysis and writing. Since 2003, he has been a member of the State Bar of California. In 1998, he graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, and now serves as a principal attorney for the Oak View Law Group in California.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.  

If you are interested in learning more about financial planning for retirement, where to retire, Social Security, Medicare, common medical issues as you age, 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 article:  http://www.baby-boomer-retirement.com

Photo credit: Michael Wuensch from Pixabay

Assisted Living - Pros and Cons of Assisted Retirement Communities

As we age, many of us are discovering that it is harder to continue to live on our own, as much as we might love our current home and neighborhood.  Eventually, it can become a challenge to take care of a house and yard, while also doing all our own cooking and personal care.  However, most of us do not want to move to a skilled nursing home, and probably do not need that level of service.  

Some people eventually move into the home of an adult child, or have one of their children come live with them.  Of course, this is not a good option for most people and, in fact, many retirees do not even have an adult child who would be capable of caring for them. 

Other people may try to postpone assisted living, by adding a variety of medical safety devices (Ad) to their current home, and sometimes that is an adequate solution, especially if they are able to have a caregiver come to their own home for a few hours a day to help them with medications, bathing, and meal preparation.  However, depending on your personal needs, this may not provide all the assistance you need.  In addition, if you develop a progressive disease, such as Parkinson's, which could eventually make it extremely difficult for you to live in your current home, you may want to arrange for a better housing solution long before it becomes medically necessary. 

What should we do?  This month we have a guest post from Jennifer Bell, who explains the pros and cons of moving into an Assisted Living retirement community.  Her information will help you decide if this is the right option for you.  

Advice for Seniors About Living In an Assisted Living Community

Nearly everyone wishes to live in their current home for as long as possible. However, as you age, it may become too challenging to stay in your current home alone, since you eventually may no longer have the ability or energy to care for yourself and your home. 

In many cases, assisted living may become the best option. Let’s discuss what retirees should know about assisted living care:

Assisted Living vs. Nursing Care

Many people often confuse assisted living communities with nursing home care. Although both services focus on keeping seniors healthy and safe, assisted living offers more space and privacy, and a more comprehensive living arrangement, for people who do not need 24-hour skilled nursing care. 

Assisted living is an option for seniors who may have difficulty performing some basic life skills for themselves, such as hygiene or grooming, and who also want to be part of a long-term social setting. In this case, an assisted living facility may be the best housing option. 

On the other hand, nursing home care primarily focuses on seniors who need regular medical assistance, thus they provide around-the-clock care by professional healthcare experts. If a senior requires constant medical attention, nursing home care may be a more practical option for them than a hospital. In addition, nursing home care may either be long-term or short-term, depending on the type of injury or illness. 

Opting For an Assisted Living Community

1.   Have a Family Meeting About the Choices Available

Many decisions are involved in choosing to live in an assisted living community. These choices mainly include assessing your needs vs. the services offered, and then evaluating the costs involved. Therefore, it is essential to involve your loved ones, particularly your adult children or spouse, when making the decision. They can offer their perspective on the types of help and services you need, and you can all make a group decision that is best for everyone.  Many couples move into assisted living together, especially if one of them is in declining health. 

2.   Take a Tour of The Community

Virtually all assisted living facilities are willing to provide a tour for interested residents. You should visit the communities you have identified as possibilities and talk to the current residents.  This will help you deal with any doubts you may have about the community. 

This is also an opportunity to learn the community rules and decide if you can conform to them. Remember, the end goal is to enjoy your stay in the community, while getting the care you need. So, please don’t force yourself into any situation you are not comfortable with.  For example, some assisted living communities include bars and happy hours, while others are alcohol free.  Some communities welcome pets, but others do not. The same is true for other preferences, such as smoking. 

In addition, various communities may offer different types of social activities, classes, exercise options, parties, entertainment and other ways for you to meet other people and stay engaged. It is important to know how you would fit into each community. 

3.   Give Yourself Time

Moving into a new environment is never easy, especially if you have left a home you loved. Even after doing everything necessary to settle into the best assisted living community for you, detaching fully from your prior home may not be easy. Staying in touch with close friends and family may help you overcome any concerns you have about leaving your old friends behind. Gradually you will make new friends in your assisted living community. 

4.   Participate in Community Events Before Moving In

One way to know if a community suits your needs and interests, and help you overcome your fears, is by participating in some of their events in advance. Finding a community which allows prospective residents to participate in their events will give you a better picture of what your life will be like, once you decide to move there. 

5.   Identify a Moving Company

Most communities are able to assist with finding moving services for their new residents. However, if you choose a community that does not provide this help for its residents, you can make the arrangements yourself. Countless professional moving companies will help you move seamlessly, and ensure that your things are well taken care of throughout the moving process. They can even help you pack and unpack.

Advantages vs. Disadvantages of Assisted Living

Advantages

1.   Daily Living Support

As mentioned earlier, many seniors who move into assisted living need help to do basic things to make their lives easier. Some seniors move to an assisted living community even when they can still handle their daily activities independently. However, if they eventually reach a point where they need a little help with some of their daily activities, immediate assistance can be arranged for them. More help will be provided as it becomes necessary.

2.   Enhanced Social Support

Most seniors have a lot of free time on their hands after retirement. Therefore, it is easy for boredom and depression to creep in, especially if they spend too much time alone. Living in an assisted living community can help them make new friends and participate in different activities, which will keep their minds active and make them happier. 

3.   Enhanced Safety

In an assisted living community, many safety measures are already taken care of, even with regard to housing design, such as non-slip surfaces, grab bars in bathrooms, and handicapped accessible floorplans. Also, in case of an emergency, it is easy for caregivers to respond swiftly. Residents also benefit from the transportation services provided in the community, so they no longer need to drive their own cars in order to go shopping, or to doctors' appointments.. 

4.   Enhanced Healthy Lifestyle

Every person has unique physical needs. However, living in an assisted living community gives you more opportunities to participate in physical activities and eat the nutritious foods necessary to keep you healthy and strong. Seniors who struggle with cooking and feeding themselves can benefit significantly from this, since the staff will provide their meals.  

5.   Enhanced Medical Attention

As a resident of one of these communities, you will have access to assistance with your medical needs, including attention from specialized medically certified caregivers who can ensure that you follow your doctor's instructions, such as taking your medications on time.  The caregivers are also more likely to notice any changes to your health and address changing medical issues as early as possible. 

Disadvantages

1.   Cost

The cost of living in an assisted living facility may be expensive compared to living in your own home in a traditional community.  All the personal care you receive can be expensive.  However, these communities may also be less expensive than living in a private home with around-the-clock private caregivers.  You and your family will need to decide which is the more affordable option for you.

2.   Difficulty Adapting to The New Environment

Do you remember when your parents moved you to a new neighborhood during your childhood, or when you moved to a new school? Making new friends and adapting to a new environment took time. The same feelings may be experienced when seniors move into an assisted living community.  It will take time to adjust, and you have to be prepared for that.

3.   Breach of Privacy

It can be hard to secure your private space when living in an assisted living retirement community. You have no choice but to welcome caregivers into your home to check on you or handle the daily chores they are expected to perform.  However, you will have more privacy in an assisted living apartment than in a skilled nursing home or a hospital.

4.   Insufficient Medical Care

Many assisted living facilities only offer basic medical care, compared to what someone might receive in a skilled nursing home. Therefore, if you or your loved one needs critical medical attention, an assisted living facility may not be the best place for them. 

For most seniors, the advantages of being in an assisted living facility outweigh the disadvantages. It is a worthy investment to ensure that your loved ones are well cared for, if you or your family can afford it. It will give families peace-of-mind to know that their loved one is well taken care of, especially when they cannot be there to personally check on them all of the time  

Author: Jennifer Bell

About the Author

Jennifer Bell is a freelance writer, blogger, dog-enthusiast, and avid beachgoer operating out of Southern New Jersey. 

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.  

If you are interested in learning more about financial planning for retirement, where to retire, Social Security, Medicare, common medical issues as you age, 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 article:  http://www.baby-boomer-retirement.com

Photo credit: Google images and author, Jennifer Bell

Handling Money and Bills in Retirement - How to Find Help

Within a decade, the oldest Baby Boomers will be turning 85, and approximately half of them can expect to be living alone.  In fact, many of them are already living alone because, over the years, they became divorced, widowed, or they never married or found a life partner.  While some Boomers have adult children or other family members who can help with their finances in a crisis, many people have no one in their family they can comfortably trust to handle their money for them, and do it responsibly, during an emergency.  Some people may only need temporary assistance, such as while they are recovering from a major illness, accident, or surgery.  Others may need the help permanently, especially if they begin to develop cognitive problems. 

Even before the Boomers hit their 80s, many of them may have occasions when they need someone to pay their bills or handle their finances for them. Perhaps they are taking an extended trip and want to make sure their bills are paid while they are gone.  They may also need help if they are getting surgery or going through chemotherapy and expect a lengthy rehabilitation process.  In fact, there are times when almost anyone may need a little help, and for people living alone without close relatives they can trust, this can present a dilemma.  Who can handle their finances when they cannot?

Protect Yourself from Elder Financial Abuse

Your first concern when allowing someone else to help you financially should be to protect yourself from the risk of elder financial abuse.  You do not want to put yourself in a situation which allows someone else to tap into your savings accounts, retirement accounts, or other sources of income and "help themselves" to some of your assets.  If you have been diagnosed with cognitive decline, this is an especially big risk.  It is very important that any relatives you trust with your money are reliable and responsible and, when possible, that you have a lawyer, accountant, or other professional who can periodically check to make sure no money is being taken from your accounts unnecessarily.  Your lawyer can also advise you on how to set up your accounts in a way which provides maximum financial protection, before you begin to rely on someone else to handle your finances. 

I also strongly urge everyone to read "The Family Guide to Preventing Elder Abuse."  (Ad) It is available in both paperback and Kindle versions and could help save you and your family a lot of heartache.  There are many types of elder abuse ... physical, mental, and financial.  While you want to protect yourself from all three types of abuse, right now we are focusing on the potential for financial abuse, which is more common than many people realize.

Auto Pay Your Bills During Temporary Absences

One way to handle the issue of getting your bills paid when you are just going to be temporarily out-of-town or recovering from an illness, is to set up all your bills on auto pay.  If your Social Security checks, pensions, and other sources of income are also set up to be automatically deposited in the same checking account, this system requires very little supervision on your part, other than occasionally verifying that everything is being paid, and the amount being deposited is adequate to cover all your expenses.  Your income goes into the account, and your bills are paid out of the account.  

Personally, I set up all my bills on auto pay a few years ago, when we needed to move out of our home for six months after extensive water damage.  Our mail service was also disrupted, so it was much easier for me to have our bills paid automatically by our bank.   Among our bills which are automatically paid are our insurance premiums, car payment, utilities, and credit card balances.  My bills are now all emailed to me, so I know how much they are, and the bank also emails me when they pay the bills.  I write these amounts in a ledger, so I can keep track of my monthly expenses and make sure that everything has been paid, so I do not overlook something.  Other than that, there is very little for me to do to handle our bills.  If you think you may need help paying your bills temporarily, and you want to be able to handle things yourself from virtually anyplace in the world, this is a good solution, and is actually much safer than mailing checks.

Get Help from a Family Member to Set Up Auto Pay

If you are nervous about setting up auto payments for your bills, see if you have a trusted friend or family member who can help you get everything set up.  Once the system is working correctly, you should be able to just check your accounts a couple of times a month to reassure yourself that everything is being paid.  When you get someone to help you, it is probably wise NOT to give them your passwords and account log-in information, or you should change your passwords once they have everything set up for you.  In this way, you are removing the temptation for them to dip into your accounts when they think you might not notice.  While you may generally trust this person, it is better to be safe than sorry!

Hire a Bill Payer and a Watchdog

If you believe you really will not be able to pay your bills in the future, even using autopay through your bank, another solution is to hire a bill payer to do the work, and a watchdog to make sure it is being done correctly.  For example, you could hire a bill paying service and then also hire an accountant or lawyer who is willing to make major financial decisions for you, and supervise the bill payer.  In choosing a bill payer service, make sure it is bonded or insured.  You can find a service through the American Association of Daily Money Managers at aadmm.com. You also may want to check out SilverBills, a company which will review your bills and authorize payments for a fee of about $100 a month.  Just remember that you, a lawyer, an accountant, or a relative should also supervise the bill paying service to make sure they are doing things correctly. 

Put Your Assets in a Living Trust with an Institutional Trustee

If you have a lot of assets and no relatives you trust to handle them for you, your best choice may be to set up a living (or revocable) trust and put your assets into it while you are in full control of your mental faculties.  There are trust companies and other financial institutions such as Fidelity, Schwab and Vanguard which can handle your investments for you and pay your bills.  This is an ideal arrangement for someone who is vulnerable, isolated and wealthy.  However, this can cost $4,500 a year or more, in addition to your normal investment costs and fees.  Consequently, this will not work for everyone, and should only be used by those who truly need this level of assistance.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.  

If you are interested in learning more about financial planning for retirement, where to retire, Social Security, Medicare, common medical issues as you age, 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 article:  http://www.baby-boomer-retirement.com

Photo credit: Pixabay images 

How Seniors Can Downsize Successfully

 Eventually, nearly every senior citizen will need to downsize. They may plan to make this change years in advance, by selling the home where they raised their family, and then purchasing a smaller house or condo. On the other hand, some seniors may be forced to downsize suddenly and unexpectedly.  For example, they may suffer a health event, be diagnosed with a disease which could leave them progressively less able to take care of themselves, or be faced with financial problems which force them to downsize.

Whether you have planned to downsize years in advance, or you suddenly realize it is something you need to do as soon as possible, it is smart to plan as well as you can, so the move goes smoothly.  

You may find it helpful to read "The Art of Happy Moving: How to Declutter, Pack, and Start Over While Maintaining Your Sanity and Finding Happiness."   (Ad) It will help you think carefully about which items to keep and how to let go of things which once brought you joy, but are no longer needed.

This week's guest post will also help you make the necessary changes in an organized manner, easing your stress, and helping you find peace with the decisions you are making. The guest post is below:

What Seniors Need to Know to Downsize Successfully

Downsizing is something many seniors decide to do during retirement. Often, living with less can be both rewarding and more affordable than staying in your current home, but the transition still comes with challenges. Here are things you need to know to ensure your downsizing experience is successful.

Let Go of Belongings in Your Own Time

Getting rid of your belongings can be complicated. Take your time and ease the process with these tips.

●     Understand and accept that you may have complicated emotions about downsizing.

●     Try methods such as the Marie Kondo technique to help you feel at peace as you say goodbye to belongings.

●      Find out where best to donate your previously loved possessions.

Consider the Current Housing Market

Evaluate how the housing market will affect your decision to buy or sell.

●     An appraisal calculator will help you estimate the value of your home.

●     Learn about the process involved in selling your home by discussing it with an experienced Realtor.  You can get suggestions which will help you sell your home, as well as get rid of your unnecessary belongings, by reading an additional article on this blog:   "Tips to Sell Your Home and Downsize or Move to Assisted Living."  It has many practical ideas. 

●     Choose whether you want to rent or own in retirement. There are advantages and disadvantages to either choice.

●     Use sites such as Rent.com to help you find an excellent rental property, if this is what you decide to do.  Consider a wide variety of possible locations and decide whether you want to live in your current neighborhood or move to a new one. If you are moving to a new city or a different part of the country, it could be wise to rent until you are sure where you want to settle permanently.

Decide What Type of Housing You Need

Choosing where to move during retirement is an essential step in the process. Think about why you are moving — and where you plan to go.

●     Contemplate how a move to a smaller home can help you save on expenses.  This could help you decide if a condo, a single family home in a new neighborhood, or a home in an over-55 retirement community is the correct, affordable choice for you.  

●     Understand what assisted and independent living offer, if those options apply.  Many of these communities offer progressive solutions, where you start out in an independent living condo or apartment, and gradually shift to receiving assistance, as needed.   In many cases, that means you can move once and remain in that home for the rest of your life, with help, should you ever need it. 

●     Make a decision on whether you want to live near family.  You may want to live near your grandchildren or your own elderly parents.  However, you also need to decide if you will want to stay in that location if your elderly parents die, or if your adult children are offered a transfer which requires them to move to a new location.  Consider your own needs before you uproot your life to move, if your only reason is to be near your family.  Make sure you are able to visit them, however.  You also do not want to cut yourself off from easy contact with them.

Whatever reason you decide to downsize, doing so successfully can be a challenge. You need to think about what items you will need to get rid of, where to move, and whether to buy or rent in your new location.  There is a lot to consider, so the sooner you start and the more time you allow yourself to make the transition, the easier it will be. Fortunately, these tips offer a great starting point for life’s next adventure.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

To learn more about common medical problems as we 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.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

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

Photo credit: Pixels

In-Home Caregivers: How to Find and Hire The the Right Caregiver

As we age, the time may come when many of us may need a caregiver, whether it is a temporary arrangement after surgery, or a permanent way to avoid moving into an assisted living facility.  You may need the caregiver for yourself, or for someone in your family.  When the need arises, do you know how to find one and what services they can be expected to handle?  How can you be confident that you can trust the person you hire?  What do you need to do to avoid financial and legal problems?

These are all important questions for patients and their families to ask themselves before hiring a caregiver.  The more you educate yourself and the better you prepare to benefit from the service they provide, the smoother things will go for both the patient and caregiver.

What Services are Performed by Caregivers?

Caregivers can be expected to help a patient with their normal activities of daily living. This can include:

Dressing and bathing
Personal hygiene
Ambulation or transferring between a bed and wheelchair
Help with medications
Shopping and food preparation
Light housekeeping and laundry
Transportation to medical appointments or for personal care

In addition, having a caregiver will reduce your loneliness, because they will have conversations with you and may even play card games or engage in similar activities, all of which can help you postpone dementia.

Best Way to Find a Caregiver

In order to avoid the risks involved in using an unlicensed caregiver, it is best to use an in-home care agency which is licensed in your state.  These companies have to meet their state's requirements regarding training and background checks.  

If possible, it is important for a family member to supervise the hired caregiver, especially at first.  According to inhomecare.com, the average state-mandated training hours for certified caregivers is approximately 75 hours of study.  Some states require even less time; others require more.  Essentially, this means caregivers must participate in only about two weeks of training.  

Before leaving your loved one with a hired caregiver, or hiring one for yourself, you will want to make sure the person fully understands their duties, including how to properly dispense medication, prepare meals the patient will enjoy, manage the transition in and out of chairs and beds, assist in dressing the patient, know how to use common home appliances, and is capable of helping the patient use the toilet, etc.  Do not leave a patient alone with a caregiver until you are completely satisfied that the person is able to handle all their routine duties, as well as any emergencies which could arise.  

In addition, make sure you write down a detailed fact sheet for the caregiver.  It should include instructions on how they can best help the patient, including allergies the patient may have, medications they take, contact numbers for doctors, neighbors and family members, and any other information you think would help the caregiver.   Even if you are the patient, make sure you put all this important information in writing. This will help the caregiver know what to do in the event you are injured or have a medical emergency and are unable to communicate your needs. 

In hiring a caregiver, you will also want to use an agency which has been approved by the American Board of Home Care.  Their goal is to "uphold the trust you have placed in them to review, check, and ensure the best quality of home care providers looking over your family, friends, and patients."

You can contact the American Board of Home Care at:

(877) 436-5259
www.americanboardofhomecare.org

Finally, it wouldn't hurt to do a Google search of your own on the caregiver, to see if this person has been mentioned negatively online or has been accused of any crimes. If you suspect they may have had a past problem, bring up the issue with the agency for an explanation.  You would not want to put yourself or a family member in the care of anyone who could be dangerous, or take financial advantage of a fragile person.

What If a Family Member Offers to be the Caregiver?

In some cases, a member of your family may be the best caregiver.  In this case, it would be smart for both the patient and the family member to sign a Long-term Care Personal Support Services Agreement.  In this way, everyone knows exactly what care will be provided, how often, and during what period of time.  In addition, it also will clarify what financial compensation they may receive, and whether this compensation will come from the person receiving the care, other family members, or the state.

A family member may be uncertain exactly what services they need to provide and how to keep track of everything.  You might find it helpful to get a copy of the "Caregiver's Workbook:  Checklists and Worksheets for Family Caregivers."  (Ad) It could help reduce your stress and keep you organized. 

In many cases, state governments will pay caregivers through Medicaid to assist low-income patients who qualify for in-home care. Having a written agreement will show the state where the money is going and what services are being provided.  The checklists and worksheets mentioned in the book above can also help you prove to Medicaid that you are performing the necessary tasks, and the hours you are working.  

Having a written agreement and agreed compensation will also reduce misunderstandings among heirs over the reduced amount of money which they might inherit, as a result of the financial compensation paid to the caregiver.

What Should be Included in the Agreement for a Family Caregiver?

If a friend or family member is going to be paid to provide the care, everyone should see this as fair and reasonable. In order to do that, the caregiver agreement should include the information listed below.  You may want to consider having an attorney draw up the agreement.

* It should be a written agreement.
* It should cover only services which will be provided after the agreement is written; not services provided in the past.
* It should provide for reasonable compensation which would not be greater than would be charged by a licensed caregiver service in your area.
* It should stipulate the types of care which will be performed and the hours the caregiver will work.
* It should specify who will pay the caregiver and how frequently. 
* It should be flexible and include the statement that the services provided may change as mutually agreed upon by the parties.
* There should be a clause allowing either party to terminate the agreement in writing.
* There should be a "backup" person listed in the event the primary caregiver is temporarily not able to provide their services (for example, if they become ill themselves).
* It should cover any additional factors such as room and board, if the caregiver lives with the patient, income tax withholding, medical insurance for the caregiver, vacation pay, etc.
* It should require a detailed log of duties performed, to justify their salary

Advantages of a Family Caregiver

Although having a family member perform the caregiver duties can cause jealousy and problems with other family members, it can also provide an extra level of care which might not be appropriate if the family hires a professional caregiver.  Some of these extra duties include:

Dealing with household and medical bills
Handling other finances
Going to medical appointments and assisting in making medical decisions

Whether you decide to go with a professional caregiver or have a family member provide that service, it will make life much easier on everyone to know that appropriate care is being provided either temporarily or permanently for yourself or a frail or ill member of your family. 

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 

To learn more about common medical problems as we 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.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

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

Photo credit: Pixabay via Google

Tips to Sell Your Home and Downsize or Move to Assisted Living

During my 30s and 40s, I was a Realtor in Dallas. Often, this involved assisting an older couple in selling their long-time family home before they moved into a retirement community or assisted living.  If they had lived in their family home for a long time, downsizing to a smaller home or apartment in an assisted living community could be extremely challenging.  Often it involved the entire family, including adult children, since an elderly couple can feel overwhelmed with selling the property, making repairs, dealing with movers, and deciding what items they need to sell or give away. 

Fortunately, today there are companies which will help simplify the process. Some of them actually specialize in helping seniors sell their home, declutter, pack up their belongings, and unpack once they have relocated.  

Senior Home Purchase Program

A San Diego based company named the Senior Home Purchase Program (SHPP) was founded with the purpose of giving seniors a simple way to make the transition into senior living.  If they choose to use the SHPP program, the company will make a direct purchase of their home, at a small discount, with no fees payed by the seller.  This means the seller does not have to do any prep work, make repairs, or spend time and money on anything similar.  

Currently, this company only helps seniors in Southern California.  However, seniors may want to get a quote from other companies such as We Buy Ugly Houses or 24 Home Cash Offer to get an "as is" quote on the sale of their home.  There are a variety of similar companies, so if you are interested in getting a cash offer on your home, without repairs or other expenses, you should get quotes from several companies.

If you use one of these wholesale home buying companies, you will have to sell your home at a discount. However, in return, you can set the sale and closing date so it is convenient for you.  You also will not have to make repairs, show your home to strangers, or pay a Realtor commission.  This makes the sale much less stressful for many seniors.

Simply Sell for Easier Home Sales

The same Southern California company that offers the SHPP program also has a program called Simply Sell.  With this program, they sell your home in the traditional way, but they attempt to set a price which will result in a quick sale.  In addition, they do not ask you to pay for any repairs in advance, and they will arrange for someone to help you declutter your home, as well as pack and unpack your belongings.

Once again, this is not the only company which will offer you these services. Any Realtor can arrange to have your home sold "as is" or with a minimal repair allowance.  In addition, many assisted living communities can refer you to someone to help you with the decluttering process.  They will help you go through everything in your home and decide which items you would really like to have with you in your new, smaller residence. Most large moving companies also offer packing and unpacking services.  Of course, it is more complicated to arrange for all these separate services yourself, but the convenience can be worth it.  Hiring people to help you with these services can reduce your stress considerably. 

Rid Yourself of Anything You Do Not Love or Need

Whether you sell your house directly to a company, or use the traditional process, one thing you will want to do is get rid of anything you really do not want or need to have in your new home.  

You may find it helpful to read "The Art of Happy Moving: How to Declutter, Pack, and Start Over While Maintaining Your Sanity and Finding Happiness."  It can help you simplify your move and enjoy it more.  

You may also find it helpful to take the following steps in planning your move: 

Do you have adult children who may want some of your belongings?  This could be a good time to give them the items you have been wanting to pass to them after you are gone, especially if you have some things you do not expect to be using again in the future.

Take a hard look at all the decorative and entertainment items you own.  Do you really need half a dozen vases, an assortment of platters and trays, dozens of framed photographs, cute little collectibles, an assortment of paintings, enough wine glasses to entertain a couple of dozen people, and souvenirs from every trip you have ever taken?  If your children do not want these things, see if you can find another home for items you no longer want or need.  

If you are moving to an assisted living community which will provide your meals, you may not need many dishes or cooking equipment.  If you will have a kitchenette, you may want to keep a few plates, coffee cups, a couple of pots and pans, a toaster, a coffee maker, and anything else you might need to prepare a small meal or snack. Everything else you should pass on to a family member, such as a grandchild getting their first apartment. Whatever cannot be passed on to a family member could be given to a charity.

You may also want to thin out your furniture before you move.  You will want to take your television, favorite comfy chair, bed, dresser, and any other furniture which will help you make the new residence feel homey. You can also take any other items which you love, if there will be space for them, but you do not want to stuff your new place so full of furniture that it becomes difficult for you to move around, especially if you might need to use a walker or wheelchair in the future.  Take what you love and absolutely must have, but leave as much open space in your new home as possible.

Finally, you may also have much less closet space in your new home. Set aside your favorite clothing, purses, and coats which you plan to wear during the last 10 or 15 years of your life.  You can assume that you will occasionally purchase new items of clothing over the years, or receive them as gifts, so you should happily get rid of anything you no longer wear.  Some of us have a hard time letting go of the suits and business attire we wore when we were working, the formal clothing from past special events, and items which are too small for us, but we hope to be able to wear again someday.  Now is the time to let them go.  Just bring what you love and need.

If you find the above tasks too challenging, you may ask an adult child or grandchild to help you.  If that is not possible, hire someone to help you declutter.  A local moving company, or the assisted living place you are moving to, may be able to recommend someone to help you.  

Most importantly, do what you can to make the process as easy on yourself as possible.  You want your new home to be a comfortable and pleasant place, not storage for everything you have ever owned.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.  You will never be contacted for any other reason.
 

To learn more about financial planning, Medicare, Social Security, financial planning, common medical problems as we age, 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.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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

Photo credit: Pixabay

The Best Places to Retire in Pennsylvania

Over the years, this blog has repeatedly been asked about the best places to retire.  Of course, many people who are planning their retirement immediately jump to the conclusion that they should only consider sunbelt locations such as Arizona, Florida, or the states along the Gulf Coast.  However, not everyone wants to move far away from their loved ones and, in the Northeast, Pennsylvania has become a popular retirement destination, with a number of attractive small towns and retirement communities.

This week's guest post was submitted by a representative of one of those retirement communities, United Zion, and provides general information about why so many retirees are discovering that Pennsylvania can be an appealing retirement destination.  

If you are unfamiliar with all the attractions which Pennsylvania has to offer, you may also want to learn more about the wealth of activities in the state by reading "Backroads & Byways of Pennsylvania: Drives, Day Trips & Weekend Excursions." (Ad) After reading this book, you'll know why so many people have fallen in love with Pennsylvania!

The author's guest post is below:  

Pennsylvania is considered one of the top states for retirement in the US. With charming towns, breathtaking wildlife, and an active population, the Keystone State is one of the best states to consider when planning for your retirement.

Continue reading to discover the best places to retire in Pennsylvania.

Evaluating Where to Retire: Pennsylvania vs. Surrounding States

There are 50 states in the country. Each state has its own merits, which makes it worthy of consideration as a place to retire. However, some states are more conducive to the retirement stage than other states.

One of these states is Pennsylvania. This is not surprising, because the quality of life is commendable in some regions, especially for folks who wish to enjoy their golden years in a peaceful home.

The magazine, US News & World Report, awarded Lancaster, Pennsylvania the top spot in its "2019 Best Places to Retire" list. From scenic parks and walking trails, to the quaint shops along tree-lined historic city streets, you’ll find plenty of things to do in Lancaster when you're not hitting the putting green of your suburban community.

Two main reasons make Lancaster, PA, an ideal spot to settle down.

The first reason is the happy life of Lancaster residents. The second reason is the affordable prices of housing in the city.

Lancaster, PA, ranked first among the 100 places that made it to the list in 2019. The other top ten contenders were Fort Myers, FL, Sarasota, FL, Austin, TX, Pittsburgh, PA, Grand Rapids, MI, Nashville, TN, San Antonio, TX, Dallas–Fort Worth, TX, and Lakeland, FL.

Based on the more recent 2020-2021 list from US News & World Report, Lancaster is still considered one of the top five places to retire in the US. Other areas in Pennsylvania which made it to the top 100 include Harrisburg, Allentown, Philadelphia, and York.

You'll want to explore the state of Pennsylvania if you are planning on retiring in the US. The Keystone State offers a wide variety of options for retirees. You can choose to live in any of the state's larger cities, or slip away to the countryside where you can enjoy a simpler life in a small town with fresh air and beautiful, starry skies.

Location/Tax Rates in Pennsylvania

Pennsylvania is ideal as a retirement haven because it is a tax-friendly state.

According to tax information from SmartAsset, Pennsylvania has a total tax exemption for Social Security income. It does not collect state income taxes on pension income for senior citizens who are 60 years old and above.

On top of this, the state has tax exemption on payments from retirement accounts, including Individual Retirement Accounts (IRAs) and 401(k)s.

Property tax rates in Pennsylvania are, indeed, higher than average. However, the state's average total sales tax rate is considered one of the 20 lowest in the US.

In general, Pennsylvania is a state where retirees can have the advantage of overall low state tax rates.

Areas in Pennsylvania

It's a practical idea to familiarize yourself with the different areas of Pennsylvania, if you are considering retiring in the state.

Susquehanna River Valley

Located in the heart of Central Pennsylvania, you'll find the Susquehanna River Valley. Based on resources from Best-Place-To-Retire.com, the area is conveniently accessible by Interstates 80 and 81 and Routes 11, 15, 45, 192, 61.

The Susquehanna River Valley comprises three counties in Central Pennsylvania: Snyder, Union, and Northumberland Counties.

Hershey

Situated in Dauphin County, Hershey, Pennsylvania, has an estimated population of 14,411, according to statistics from Livability.

The average income in Hershey is $67,325. The standard home value is $292,552.

Lancaster

Located in the heart of Amish Country, you'll find Lancaster, PA. The city has an approximate population of 61,872, based on Livability information.

The standard income in Lancaster is $39,127. The average value of homes is $119,492.

Lititz

Lititz is situated in Lancaster County in Pennsylvania. The town has an estimated population of 9,702, according to resources from Livability.

The average income in Lititz is $58,234. The standard home value is $191,253.

Community Life in Lititz, Pennsylvania

You may be asking yourself, "Is Lititz, PA a good place to live?"

Lititz, located in Lancaster County, is one of the best places to retire in Pennsylvania. Aside from the quality of life, low tax rates, and other factors mentioned above, it also showcases a warm, vibrant community.

Lititz was named the "coolest small town in America" by Budget Travel. It gained recognition because of its rich historical heritage, lively presence, and myriad of attractions like cultural landmarks, restaurants, galleries, shops, and events.

About our Community

If you are still looking for the best places to retire in Pennsylvania, we invite you to explore United Zion Retirement Community located in Lititz, PA.

United Zion is a compassionate, close-knit Life Planning Community in Lititz, PA. Our professional and warm staff, small community setting, and beautiful surroundings create an inviting, comfortable living environment. Our mission is to provide the highest quality of care to each resident in a nurturing environment.

Staying in one of the residential living cottages and apartments in this retirement community will allow you to maximize your enjoyment of your golden years in Pennsylvania.

Call us at (717) 626-2071, or send us a message to learn more about our retirement community.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.  You will never be contacted for any other reason.
 

To learn more about financial planning, Medicare, Social Security, financial planning, common medical problems as we age, 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.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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

Photo provided by the Union Zion Community

Estate Planning Can Help Heirs Handle Your Affairs Even Before You Die

If you are suddenly hospitalized, or pass away, would your adult children or other heirs be able to figure out what accounts and assets you have, ongoing services which need to be canceled, bills that needed to be paid, and other important information?  Would they know who to notify if you are in the hospital or have died, including friends, landlords, and employers?  Is there someone you trust to have access to your bank accounts in case of an emergency?  Are your heirs aware of what treatments you would accept in the hospital, or whether you have a Do Not Resuscitate order? Do they know if you have a long-term care insurance policy, in case you need to go into a nursing home?  Do your heirs know your funeral preferences or where to find your will and trust?

Most of us would not want to leave our children with a chaotic financial mess to handle if we suddenly become sick, seriously injured, or die, but it happens all the time.  An expected illness or death is difficult enough.  However, when your heirs also have to spend countless hours unraveling the details of your life after an unexpected event, it could overwhelm them.

"In the Event of Your Death" Binder

One solution my husband and I chose to implement was to put together a binder we labeled "In the Event of Our Deaths."  While this notebook would not completely answer all the questions our children might have if we are incapacitated or die, it would certainly help them get started.  We used the notebook to pull together all the information we thought our adult daughters would need if we were unable to take care of our affairs, either temporarily or long-term.  In addition to this notebook, we have also given one of our daughters log-in information for our computers, with access to our bank accounts.

Here is some of the information we put into the binder:

Copies of Our Wills and Trusts
Funeral Arrangement Info
Burial Plot Receipt
List of Who to Contact in the Event of our Deaths
Life Insurance policies
Medical Insurance Info
List of bank and brokerage accounts
Advanced Health Care Directives
Copies of our Driver's Licenses, passports, and other documents

How Else Can We Help Our Heirs Handle our Affairs?

Putting that notebook together will certainly be a big help to our children if something happens to us.  However, it is not the only steps we had to take in order to make things easier for our children or other heirs.  What else should everyone do in order to be well prepared in an emergency?

* Give a copy of the major documents in your notebook to the executor of your will, so they have the information they need, even if they live in another city, or if something happens to you while you are traveling.

*  Discuss your end of life wishes with ALL of your children or heirs.  This is one way you can reduce the discord between family members if you are unable to speak for yourself, or if you die.  Let them know important things such as whether or not you want to be cremated, and how you want your remains handled afterwards.

*  Prepare a Heathcare Directive.  In addition to an executor of your will, you also will need a healthcare agent to make decisions for you.  This can be the same family member, or a different person, especially if you are concerned that it may be difficult for your family member to make the hard decisions about your end-of-life care.  Make sure the people you choose for these important jobs know that you have appointed them to these positions and ask them if they feel they will be able to carry out the necessary duties involved.

*  Sign a Power of Attorney. Make sure you have someone who can handle your finances for you, if you become unable to do so.  You will want an attorney to draw up a durable power of attorney so this person can act on your behalf.  As long as you are mentally competent, you can revoke the durable power of attorney at any time.  It will also automatically end when you die.  You can pick a family member or, if you do not have someone you think would be able to handle this task, you can choose a bill payer service.  Your attorney can help you find someone.

*  Discuss your bequests and other plans with all your heirs. Make sure everyone knows how your personal property will be passed on to them.  Does someone have a favorite painting, antique, or piece of jewelry they would like to have when you are gone?  Put in writing any special items you are bequeathing to someone, and make that information available to all your heirs.  It will dramatically reduce misunderstandings after you are gone, especially if you are fair to everyone, so no one feels that another family member was treated better than the others.

Estate Planning Documents

You can get your documents prepared by an attorney, and the attorney can also give you advice about who should be your executor and handle other decisions.  He can also provide you with other paperwork you may need.

If your estate is simple and you just want the documents completed, you can find do-it-yourself wills, trusts and other documents online. (Ad) There are a wide variety of online choices to help you get your estate planning organized.  Even if you do not have a lot to pass on to your spouse, children or other heirs, it will be so helpful to them if everything is put into writing, including your end-of-life wishes.

Keep Your Information Up-to-Date

It is important to keep the information in your End of Life Notebook current.  Over the course of a few years, you may move, change your job, open new accounts or even get a new grandchild.   Some of the people on your notification list may have died.  It is important to go through your notebook at least once a year and update anything that might have changed.  It is easy to let that slip, but it is very important.  Time gets away from us all.  However, your notebook will only be helpful as long as the information in it is correct.  

Relax and Enjoy Your Family

Once these details have been worked out, you will feel relieved.  You will be able to enjoy your family visits without worrying about what will happen if you become sick or die unexpectedly.  There will be fewer questions from your children about what will happen to your things if you die.  In fact, it will rarely be a topic of discussion.

You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.  You will never be contacted for any other reason.
 

To learn more about financial planning, Medicare, Social Security, financial planning, common medical problems as we age, 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.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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

Photo credit: Pixabay