Help for Retired Grandparents Raising Grandkids

Like millions of other couples in the U.S., the man and his wife who handle our taxes are also raising one of their granddaughters.  A widow in my book club raised two of her grandchildren until they finished college.  Several other retired people we know have raised their grandchildren for at least part of their childhood.  Unfortunately, this issue creates a number of problems for senior citizens, including where to live.

Journalist Leslie Stahl, from 60 Minutes, addressed some of the problems involved in raising grandchildren in her book Becoming Grandma: The Joys and Science of the New Grandparenting and in an article she wrote for the website Next Avenue called  "A Place to Live for Grandparents Raising Grandchildren."

Millions of Grandparents are Raising their Grandchildren

According to Ms. Stahl, there are almost 3,000,000 grandparents in the U.S. who have legal custody of some or all of their grandchildren.  Approximately 18 percent of these families live below the poverty line.  They face a number of issues, including where to live.

Limited Housing Options Make it Difficult for Grandparents

It is against federal law for children under the age of 18 to live with parents or grandparents in an age-restricted over-55 retirement community, a Continuing Care Retirement Community (CCRC) or other type of senior facility.  Children are also not allowed in low-income housing for the elderly or in senior apartment complexes.  As a result, grandparents who make the tough decision to raise their grandchildren are often forced to move, sometimes into situations which are not safe for them or their grandchildren and which are not well-designed for the elderly.

The sole exception to the lack of housing for grandparents who are raising their grandchildren is the Grandparent Family Apartment Complex which is located in the Bronx in New York.  The complex was build in 2004.  According to Leslie Stahl, it is the only complex of its type in the United States, although there is unquestionably a need across the country.  In addition to providing affordable housing, the complex offers different types of support to the grandparents and children, including transportation, legal services, mental health services, after school care, tutoring, support groups and parenting classes.  These programs at the Grandparent Family Apartment Complex seem to be making a significant difference in the lives of the children.  Their high school graduation rate exceeds that of the surrounding community.

Why Grandparents are Raising their Grandchildren

There are many reasons why grandparents feel compelled to take over the custody of their grandchildren.  The children's parents may have died in an auto accident or from diseases.  In some cases, the parents may not be equipped to properly take care of their children because of mental illness, abusiveness, addiction, or alcoholism.  In other situations, the parents may be deployed with the military or could be in jail. Sometimes the problem is a teen pregnancy and the grandparents decide to continue raising both their child and their grandchild.  Whatever the cause, grandparents who have already raised their own children often find themselves starting over again with their grandchildren.

Housing Solutions for Grandparents

While their options are limited, there are a few things grandparents can do to make the situation easier for both them and their grandchildren.

More affluent grandparents, of course, have more options about where to live.  They may be able to remain in the family home where they raised their own children or move into a similar community.  Younger grandparents who are still in good physical condition may be able to continue to hold down a job and raise their grandchildren.

Low-income grandparents also have a few resources available to them.  For example, they can apply to receive Section 8 housing vouchers or to move into low-income family apartments.

Financial Aid for Low-Income Grandparents

In some states, the grandparents may want to ask their Social Services department if they qualify to become legal foster parents for their grandchildren. They will have to go through an application process and background check, but it could be worth the effort.  If the grandparents are appointed foster parents, they will qualify for financial assistance which could make it easier for them to afford to provide their grandchildren with better care.  If a grandparent is living solely on Social Security, this additional financial assistance could be the only way they can afford to feed, clothe, house and care for their grandchildren.

The grandparents may also want to go to their local Social Services department to see if they qualify for SNAP (food stamps) or other types of public assistance.

If the grandparents are on Medicare, their grandchildren may also qualify for low-cost health insurance through Medicaid.  If the grandparents are still working when they become the legal guardians for their grandchildren, they may be able to add their grandchildren to the insurance coverage they get through their employer.

Other Considerations for Grandparents Raising Grandchildren

If you decide you are the best person in your family to raise your grandchildren, there are other issues you may want to consider when choosing a place to live:

School system - You may want to check a site like greatschools.com to decide which school would be the best for your grandchild. Once you pick a school, plan to get involved.  Join the PTA and take any of the parenting classes they offer.  You may believe you know everything you need to know, since you already raised a family.  However, connecting with other parents and learning a few new ideas could make life easier for both you and your grandchild.

Friends and Relatives - We all need someone to back us up once in a while.  You may want to move close to other relatives or friends who would be able to babysit occasionally or even step in and take care of the children for a few days or weeks if you need to go into the hospital or just come down with the flu.

Other Support Systems - Consider becoming involved in a neighborhood church, synagogue, mosque or temple.  Most of them will have youth activities which can provide a positive environment for your grandchildren.  You may also investigate other neighborhood support systems such as after-school programs, pre-schools, sports teams, Scouts, Big Brothers or Sisters, and the YMCA. Welcome all the help you can get while raising a grandchild.

Medical care - Seek out a caring family doctor or pediatrician, as well as a dentist. These medical caregivers can help you keep your grandchildren healthy.

Preparing for retirement is complicated enough if you only have to worry about yourself.  If you are also caring for grandchildren, it becomes even more complex.  Make sure you take advantage of all the help you can get.

Looking for help in planning your own retirement?  Watch for my book, Retirement Awareness, which is scheduled to be released by Griffin Publishing in 2018.

Want more information on where to retire, common health issues, 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 other articles.

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

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Should You Loan Money to Adult Children?

Retirees and those approaching retirement frequently face a common dilemma ... should they give or loan money to their adult children?  A Pew Research Center survey in 2015 discovered that approximately 61 percent of people with adult children had helped their kids out financially during the preceding year. The decision to help or not to help can be difficult, especially if grandchildren are involved.  Many retirees wonder when they should agree to co-sign a lease, help their adult children purchase a car or assist them financially in other ways, and when they should say "no."

In a January, 2017 article in AARP Magazine, titled "The Bank of Mom and Dad," Stephen Perrine, the author, suggested four questions to answer before you either lend or give your children money.  He also presented several examples to help people understand how to apply the answers.

Questions to Answer Before Lending Money to Adult Children

1.  Is the money intended to be used for something they simply want, but don't need; or will it add real stability and security to the child's life?  (Necessary)

2.  Will this be a one-time or short-term gift or loan, or will it be something which will require an ongoing financial commitment lasting for years?  (Short-term)

3.  Will your financial assistance require you to co-sign a contract?  Could it hurt your credit?  Is there a financial risk to you or your adult child?  (Financially safe)

4.  Can you give or loan this money to your child without it damaging your relationship?  Could it cause future tension or resentment?  (Emotionally safe)

How to Decide Whether to Help Your Adult Children Financially

When you consider the above questions, obviously the best time to help your child financially would be when it is necessary, short-term, financially safe, and emotionally safe.  Of course, life is not always that simple.

Ideal situation:  When one of our granddaughters needed braces and her mother, our divorced, hard-working daughter, could not handle the added cost by herself, my husband and I were happy to step in and make the monthly payments.  Towards the end of the contract, our appreciative daughter had secured a better paying job and took over the payments herself.  At the time we decided to help, we believed our decision was necessary, short-term (although it went on for a couple of years), financially safe and emotionally safe.  We could afford the payments and our daughter could not. We had no problem making the decision.

Complex situation:  Not all decisions are as clear as the one above.  For example, what if your child "needs" a car to get to work.  Should you help them with the down-payment or co-sign the loan?  If they are asking for your financial assistance, you are within your rights to only offer a limited amount of help, especially if your decision could put you at financial risk.  You may want to insist they purchase a practical, used car.  You might decide to provide a down-payment, but not co-sign a loan.  If you do decide to co-sign the loan, you need to understand that it could affect your own credit, particularly if your adult child begins to miss payments or make late payments.  Could you afford to take over the payments if your child defaults?  In this case, the purchase of a car might seem necessary, but it would not be short-term assistance, financially safe or emotionally safe, since it could create a strain in your relationship with your child.

Other types of situations:  In the AARP Magazine article, Perrine also discussed other complex situations such as paying for an expensive wedding, co-signing a lease or mortgage, giving or loaning your children money for a down-payment on a home, helping an adult child with young children recover from a divorce, investing in a business opportunity which interests your kids, or paying for graduate school.  In each situation, you need to ask yourself if the gift or loan is necessary, short-term, financially safe for you both, and emotionally safe for your relationship.

Some of these decisions will be much easier than others.  Most important of all, you need to consider whether or not helping your adult children financially will endanger your own financial future.  If giving them money would mean you may not be able to take care of your own retirement needs, then you will probably want to deny the request, no matter how necessary the expense may seem to be.

If you are interested in more information to help with your financial planning, family relationships, finding a place to retire, Social Security, or Medicare, 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

Affordable Retirement Cities with Pleasant Climates

Are you looking for a pleasant, affordable city which is a good choice for retirement?  Do you want to have access to quality healthcare, cultural diversity, and mild weather?  The website caring.com put together their 2017 list of "Best Cities to Retire on the Cheap," and one of the cities listed below might be the perfect choice for you.

The major the factor which caring.com considered was the overall affordability of the city.  As they point out, however, there is no benefit in finding a city with cheap housing if the weather is so cold in the winter you pay exorbitant prices to heat your home.  You would probably be no better off financially, and you would have to deal with the downside of aging in an area which frequently experiences snow, ice and other weather extremes.  When they put together their list, therefore, in addition to affordability they also considered climate, healthcare, economic vitality and both geographic and cultural diversity.  In other words, these are cities which are not only affordable, but have a number of other advantages which would make them attractive to retirees.

Before moving to any of these cities, retirees will want to do more research to make sure they can afford to live in the city of their choice and to determine if they will have access to activities which interest them.  You will also want to plan an extended vacation, if you are unfamiliar with the city.  However, some of these cities should definitely be on your list of ones to consider if you hope to relocate to a fun, affordable city after retirement.

Affordable Retirement Cities According to Caring.com

Tucson, Arizona - For decades, people have retired to this city with a population of just a little over a half million.  This makes it easier to meet other newcomers in your age group.  Traffic is not a major problem and there are plenty of ways to stay active ... yoga studios, shopping centers, restaurants, and more.  There are eight hospitals in the city. Because it is in the high desert, the weather is milder than many other parts of Arizona.

Dover, Delaware - The state capitol of the small state of Delaware is equally small .. with a population of less than 40,000 people.  Despite its tiny size, the city has a strong economy, plenty of places to shop and eat out, plus you are halfway between New York City and Washington, DC. This gives you the opportunity to hop on a commuter train and experience world class entertainment, while living in a city which is far more affordable than either New York or Washington.

Bend, Oregon - For retirees who want to live in a city but be close to a wide variety of outdoor activities, including golf, snow skiing, hiking, fishing, boating and mountain biking, this city could be the ideal spot for you!

Sarasota, Florida - Built in the 1920's along the Gulf Coast of Florida, the Art-Deco downtown is adorable.  The Ringling Brothers Circus wintered here in the past, so expect to see circus memorabilia around town.  There is also an opera, symphony, ballet, music festival and other ways to stay active.

Boise, Idaho - This city gets an average of 21 inches of snow a year, so you will still have to deal with bad weather in the winter.  However, it is affordable and has an abundance of hiking and biking trails in the city.

San Luis Obispo, California - This small California city near the Central coast is home to Cal Poly University and is affordable compared to many other California coastal cities.  The weather is very temperate and it is surrounded by other affordable small towns such as Atascadero, Nipomo, Arroyo Grande, Paso Robles, and Templeton.  One of my granddaughters went to college in this town and we enjoyed visiting her and strolling through this attractive village.

San Antonio, Texas - The charming River Walk, across the street from the famous Alamo Mission, is reason enough to love this appealing Texas town.  The city has a wide variety of urban activities, including shopping and restaurants, and is surrounded by a number of even more affordable small towns.  Our family has vacationed there several times and love the city.

Nashville, Tennessee - If you love country music, there are few better places to live than Nashville.  The fact that it is also affordable and the climate is mild make it even more desirable.

Charlotte, North Carolina - This affordable, friendly city of about 700,000 people has a large number of cultural activities available.  It also has a booming economy, in case you want to continue to work after retirement.

Fayetteville, Arkansas - Located on the shores of Beaver Lake, this vibrant city offers a wide variety of recreational activities.

General Information about Choosing a Retirement City

As with any potential retirement city, the ones on this list contain both good neighborhoods and bad neighborhoods.  They are also surrounded by suburbs, small towns and, sometimes, retirement communities which give you the benefit of both city life and small town living.  If you are looking for an affordable place to retire, pick a few cities from this list and get to know them.  Work with a local Realtor and see some of the homes available in your price range.  Check out websites like caring.com and Zillow to get more ideas about where to retire. Once you have explored these communities and others, you will have a much better idea of where you would like to retire.

Are you looking for more information on where to retire, financial planning, Medicare, Social Security, healthcare and changing family relationships, 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:  morguefile.com

How to Report a Scam or Fraud

No matter how hard we try, the vast majority of us will eventually become victims of a scam or fraud.  Our downfall could be identity theft, a con artist, overly aggressive debt collectors, internet or phone extortion, phishing emails or other types of crimes.  Whenever something like this happens to you, it is important to contact authorities and help them fight these crooks.

Scammers are Criminals

First, it is important to understand that these types of behaviors are illegal and the people committing these crimes can be fined or sent to prison for cheating you.  In many cases, the phone calls and emails originate in other countries.  Whether the criminals are in the U.S. or another country, they can still sometimes be caught and punished.

Second, you should recognize the fact that these scammers and con artists are well-trained.  They know who you are and how to get information from you.  They are experts at tricking you into sending them money or giving you the information they need to steal money from you.  Everyone needs to be constantly vigilant and learn how to protect themselves from scams and fraud.

Finally, you should not be embarrassed if you become a victim of one of these crimes.  Often there is nothing you can do to prevent them.  The internet is full of identifying information about millions of Americans.  Facts about you have often been obtained illegally by scammers who use sophisticated means to hack into computers and steal information.  It is not your fault.  You should never be too embarrassed to report any fraudulent use of your identity.

If you do become a victim of a scam or fraud, it is extremely important to notify law enforcement, so these criminals can be hunted down and stopped.

How to Report a Scam or Fraud

When to Contact Local Police, the District Attorney or your State Attorney General

If the fraud was committed by someone locally, such as a dishonest contractor, a door-to-door sales person, or a local business, contact your community police department, your county district attorney, and your state's attorney general.  File a complaint and provide them with as much specific information as you can.  In addition, you may want to file your complaint with the FTC, the Consumer Financial Protection Bureau, the Postal Inspector, or the Internet Crime Complaint Center.  Their information is listed below.

You should also contact the local authorities, as well as your financial institution, if your credit or debit cards have been lost, stolen or used fraudulently.

If you are not satisfied with the results after you have reported one of these crimes, you may also want to contact the crime fighting reporter for a local television station.  They may be able to get more attention than you can on your own.

Federal Trade Commission
ftc.gov/complaint
(877) 382-4357

Use the FTC to report identity theft, overly-aggressive debt collectors and any situation in which you have been the victim of a fraud.  You may not hear back from them after filing your report.  However, the FTC compiles a database of scams and uses the information they collect to build cases against specific con artists. One person's complaints about a scammer might not make a difference.  Hundreds or thousands of complaints could result in a criminal investigation.  You are helping to protect others when you file a complaint, even if you never get your money returned or hear back from the FTC.

Consumer Financial Protection Bureau
consumerfinance.gov/complaint
(855) 411-2372

If you feel you have been deceived by someone promoting a financial product, such as a loan, bank service, credit report, debt collection, or credit card, contact the CFPB.  Your should also contact them if you believe a company or one of their employees stole your identity.  They will contact the company providing the service and give them 15 days to respond.  The CFPB tries to resolve complaints filed with them within 60 days.

Internet Crime Complaint Center
ic3.gov/complaint

If you are the victim of an internet crime, including investment fraud, sales scams, online auctions, internet extortion, hacking, phishing or scam emails, contact the IC3.  It is run by the FBI and they will forward your complaints to the appropriate agencies where it will be investigated and a case built against the offending parties. Again, you may never hear back.  However, your complaint will be combined with others in order to catch the perpetrators.

Postal Inspection Service
postalinspectors.uspis.gov
(877) 876-2455

If you receive any suspicious mail, including chain letter schemes, deceptive advertising, or phony lottery and sweepstakes letters, contact the Postal Inspectors.  The same is true if you believe that your mail has been stolen.  If you believe financial information was in your stolen mail, contact your financial institution, as well.

Put Yourself on the Do Not Call Registry
donotcall.gov
(888)382-1222

Another government run program designed to protect consumers is the Do Not Call Registry.  Once your phone numbers have been on the list for at least 31 days, you can report unwanted phone calls to the Registry.  They pool the complaints until they have enough to catch the violators.  However, the Do Not Call Registry will not protect you from receiving calls from legitimate charities, survey companies, debt collectors and political candidates and parties.  Unfortunately, you will have to use your own judgement to determine if they are who they say they are, or a scammer pretending to be calling from a legitimate business.  Consequently, you might want to avoid having long conversations with strangers, since it is difficult to know the difference between a legitimate charity asking for donations or information and a phony one.

Do not simply shrug off fraudulent behavior or scams.  Do not be too embarrassed to report crimes when you have been victimized.  By filing a complaint or, in some cases, several complaints with different government agencies, you could prevent the same crime from happening to someone else.

If you are interested in learning more about how to protect your retirement savings, where to live after you retire, common medical problems, 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 will be published by Griffin Publishing in 2018.

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

Photo credit:  morguefile.com

Friends and Family Prolong Your Life

Are you looking for a fun, easy way to live longer?  According to research done at the University of California in San Francisco, and reported in the AARP Bulletin, spending more time with your friends and family can increase your life expectancy.  This is especially true since the Covid pandemic, when many people stopped socializing and some of them have never returned to the amount of socialization they did before.

The researchers followed 1,600 adults who had an average age of 71 at the beginning of the study.  They took into consideration their socioeconomic status and their overall health.  Those people who self-identified as being lonely consistently died at a higher frequency over the six years of the study.  During that period of time, 23 percent of the lonely people died; only 14 percent of those who were satisfied with their level of companionship died.

How Retirees can Increase their Socialization

Since loneliness can contribute to early death, it is important we take steps to make sure we do not become too isolated as we age ... which is easy to do when we no longer go to a job.  Below are a few suggestions for increasing the time we spend around other people, particularly after we retire.

1.  If you have relatives nearby, make sure you reach out to them and try to spend time together.  Your adult children and grandchildren can immeasurably enrich your life.  If you are not retired yet, but have older relatives or siblings who live in your area, plan activities which include them.

2.   If you live in a mixed age community and no longer spend much time with your neighbors, make an effort to get to know them.  An occasional block party or neighborhood ice cream social benefits people of all ages.

3.   Find out if your community has a senior center.  They often have exercise classes, parties, dances and, sometimes, low-cost lunches which seniors can enjoy in the company of other people.

4.   Call your local community college to see if they offer classes for senior citizens.  Many colleges offer emeritus classes which are either free or very low cost.  Going to classes which you enjoy is a fun way to meet other people with similar interests.  Suggest a few of you go out to lunch or for coffee either before or after your classes so you can get to know each other better. 

5.    Make an effort to join a club, organization or place of worship.  Participating in these organizations can help you stay connected with other people.  The more involved you are, the better off you will be.  It is not enough to attend an occasional club meeting or church service.  Volunteer.  Join a committee.  Go to social events.  These experiences will enrich your life.

6.  Regularly speak with your friends and neighbors.  You may even want to set up a specific time every day, or several times a week, when you call and chat with a friend.  If one of you doesn't answer and there is no explanation for the absence, agree that you will contact family members, a neighbor, or local police so someone will do a "welfare check" on you.  It will bring you and your friends peace-of-mind if you all know that you are looking out for each other.

7.   Do not rebel against the idea of moving to an independent or assisted living facility.  While some people still have a negative image of these living arrangements, sometimes comparing them to old-style nursing homes, the truth is that most people thrive in these facilities.  Today's senior housing facilities have a wide variety of fun amenities and provide an excellent opportunity to socialize and make friends.

Remember:  Being sociable not only makes you happier and improves your outlook, but can prolong your life.  The more involved you are with other people on a regular basis, the better off you will be.

If you want to learn more about common health issues as we age, financial planning, where to retire, changing family relationships, 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 helpful articles.

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

Photo credit:  morguefile.com

Your Pre-Retirement Checkup

If you are getting close to retirement, it is time to do a pre-retirement checkup.  You want to feel confident you will have enough retirement income to support yourself and your dependents; you also want to have a plan to make sure your money lasts the rest of your life.  While no one can guarantee your assets will last a lifetime, you do not want to retire until you feel fairly certain you will not outlive your money.

What is involved in a pre-retirement checkup?  How do you make sure you are ready to retire?

Organizing a Pre-Retirement Checkup

Of course, you should have been looking over your retirement plans throughout your working years, not just when you are about to retire.  The earlier you started planning, the more likely you are to have a satisfying retirement.  However, about five or six years before you think you will retire, you need to evaluate your plans more carefully.

Start with your annual Social Security benefit estimate.  How much income do you expect to receive at different potential ages?  Would you be better off if you postponed your retirement by a year or two, or even until age 70, in order to increase your income?  Remember, if you are married and have been the primary breadwinner, your spouse will also be affected by your decision.  The longer you wait to retire, the higher your income will be, as well as the income of your spouse.

Next, look at the size of your retirement savings account.  Many financial planners recommend retirees start by only withdrawing 3 percent a year, gradually increasing that amount by 0.03 percent a year, so they are sure their money will last the rest of their lives.  If you add that amount to your Social Security benefits, will you have enough income to maintain your current standard of living?

Do you have any other income which will supplement your Social Security and savings withdrawals?  For example, are you eligible to receive a pension in addition to Social Security or will you have a small income from a hobby, part-time job, rental property or other source?

Evaluate Your Living Expenses

Once you have a fairly good idea of how much income you will have, it is time to evaluate your current cost-of-living.  Are there expenses which you expect will be lower after you retire, including commuting costs, eating out, and buying work clothes?  Are there some expenses which you expect to be higher, such as taking trips or eating more meals at home?

If your estimated retirement cost-of-living far exceeds your future potential income, you may consider relocating to a less expensive area, getting a smaller home or taking other steps to reduce your expenses.  You may be able to make some of these adjustments before you retire and use the money you save while you are working to build up your retirement savings.

Talk to a Financial Planner

Even if you believe your retirement plans are in good shape, this is a good time to meet with a financial planner or investment advisor.  You want someone who will charge you an hourly fee to review your investments or a flat fee to manage your assets, and not someone who relies solely on commissions from the investments he sells you.  Ask the advisor to look over how your retirement assets are invested and recommend changes which could increase the growth of your assets over the remaining years before you retire.  Once you retire, you may want the financial planner to reallocate your assets in order to increase your income and reduce your risk.

In addition, a financial planner can help you determine how much more money you might need to put aside in savings during your remaining working years, what age you should begin to collect your Social Security, what changes you need to make to your lifestyle, and the tax ramifications of making withdrawals from your IRA or 401(k).  The financial planner can also help you decide if some of your current assets should be placed in a Roth IRA, to reduce your future taxes.

After going through all the numbers, first by yourself and then with a financial planner, you will feel much more confident about your retirement plans. Your goal is to be comfortable and confident when you stop working.

For an overview of retirement planning, watch for my book Retirement Awareness: 10 Steps to a Comfortable Retirement which will be published by Griffin Publishing in 2018.

If you are interested in learning more about financial planning, where to retire, common medical issues and changing family relationships, use the tabs or pull-down menu at the top of the page to find links to hundreds of additional articles.

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

Photo credit:  morguefile.com

Protect Yourself from Fraud and Scams

Retirees are extremely likely to become the targets of scams or fraud.  As a result, we must be extraordinarily careful about our interactions with businesses and people who contact us by phone or on our computer. We are continually bombarded with phone calls and emails from dishonest people who try to trick us into turning over our personal information or money.  Many of these scammers are very persistent and deceptive.  Sometimes it can be difficult to tell the difference between legitimate and fraudulent websites.  The only way to stop these scammers is to learn how to protect ourselves and then report the crooks who try to cheat us.

What are the Most Common Scams Against Seniors?

There are a number of ways in which scammers are able to cheat us.  They may call, pretending to be a grandchild in trouble, and beg for money.  They might win our confidence on an online dating site and ask us to "loan" them money to help them out.  They could impersonate an IRS agent and threaten us with jail if we do not immediately pay our back taxes, which they demand in the form of gift cards or other untraceable types of instant money.  Sometimes they ask for donations to official sounding charities.

Scammers can also trick us by sending fraudulent emails from sites which look similar to the official sites of our bank or credit card company.  They might download malware on our computer and lock us out, until we pay a ransom.

It seems as if the different ways scammers can attack us are endless and they are continually coming up with new approaches.  We have to continually be vigilant.

How to Protect Ourselves from Scammers

While there seems to be no limit to the variety and creativity of the scams which threaten your financial security and peace-of-mind, there are steps you can take to make yourself less vulnerable.

1.  Ask plenty of questions if a family member calls and asks for money.  No matter how much of an emergency it appears to be, make sure you are actually talking to your relative and not a complete stranger.  We have told our adult children and grandchildren not to get their feelings hurt if they ever call asking for money and we pepper them with questions.  We explained to them there are very aggressive scammers who pretend to be members of a family and beg for financial assistance ... often while "crying" so it is difficult to identify their voices.  As a result, we would need to ask numerous questions before sending anyone money.  These questions might include where they went to school, their best friend's name, or their address as a child.  We have also told our family members we would call them back on their cell phone and discuss the request with other family members, to make sure the request is legitimate.

2.  Be suspicious if an "authority figure" calls and demands money.  Whenever a stranger calls pretending to be an IRS agent, the manager of your bank, or an representative from your credit card company, do not provide them with information they should already have such as your credit card number, date of birth or full Social Security number.  If you are in doubt, hang up and call the company or business directly, using the official customer service phone number for your bank or credit card company. The IRS will never unexpectedly call you demanding an immediate payment.

3.  Do not send money to strangers you "meet" online.  No matter how compelling or sad their story is, there is no way for you to verify they are telling you the truth.  Be suspicious, even if they show you "evidence."  Many of these scammers work in groups and they are very good at vouching for each other or producing realistic looking documents.

4.  Be very slow to send money to anyone.  Just because someone else seems to be having an emergency, you do not have to rush to send them money.  Take your time.  Whenever you consider sending money to someone, even a relative, discuss the decision with other family members. If necessary, call the police or the U.S. State Department and ask for their help in confirming that the situation is legitimate, particularly if the "crisis" is occurring in another country.  

5.  Never click on links in emails which are sent by strangers.  You should only click on links in emails sent by friends if you are expecting the link.  Your friend's email service could have been hacked.  Email links can allow scammers to take over your computer remotely.  Once they do, they can find anything you may have on your computer ... banking information, contacts, photos, passwords, etc.  For example, I have told my friends that if they send me a joke or interesting story and I have to open a link to read it, I will not open the link unless I am expecting them to send me this information.  We can't be too careful.

6.  Be careful about what you say on social media.  Make sure your Facebook posts have a privacy setting of "Friends only."  Do not reveal too much about yourself; especially do not give details about where you live and then announce when you are out-of-town.  Some people make it far too easy to be robbed.  In addition, be careful of the social media questionnaires which ask personal information about you such as your birth date, place of birth, maiden name, etc.  Combined with other information about you which is publicly available online, dishonest people can easily steal your identity.

7.  Make sure your computer is as safe from intruders as possible.  Although any computer can be hacked, some people make it far too easy.  Use both antivirus and anti-spyware software.  Keep your computer software updated.

8.  If you receive harassing phone calls, block the number.  No matter how lonely you may be, talking to strangers on the phone is not safe, no matter how old you are.  They may have done their research on you before making the call, including looking up your first name and the names of family members.  They may pretend to have met you and try to gain your confidence, before tricking you into making a "donation" to a worthwhile cause or asking for money for some other purpose.  Keep phone calls from solicitors, charities and other strangers short.  Hang up on them, if necessary.  We always tell phone solicitors that we do not conduct business over the phone, and then quickly end the call.  After the call, we block the number so they cannot keep calling back.

Finally, if you believe you have been cheated or tricked by a scammer, take the time to report the incident to the police.  If the scammer was pretending to be from the IRS, your bank or another business, notify the government agency or business involved so they can help you prevent this from happening to someone else.

If you are interested in learning more about handling finances in retirement, where to retire, common medical issues, 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, which is being published by Griffin Publishing and will be available in 2018.

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

Photo credit:  Photo property of author.

Short on Retirement Savings? - Find Solutions

How much money do you think you will need in order to retire comfortably?  The honest truth is you probably need more, much more, than you actually have.  According to SeniorLiving.org, half of Baby Boomers, the generation which is currently retiring at a rate of 10,000 people a DAY, have saved less than $100,000.  Over one-third have saved less than $50,000.  This means a substantial number of Baby Boomers have not saved enough money to produce a modest retirement income, even when combined with their Social Security benefits, and they are at a serious risk of outliving their retirement savings.

Breakdown of Baby Boomer Savings

The report at SeniorLiving.com showed the following statistics for Baby Boomers as of December, 2016:

37% - Saved less than $50,000
13% - Saved between $50,000 and $100,000
14% - Saved between $100,000 and $200,000
12% - Saved between $200,000 and $300,000
09% - Saved between $300,000 and $500,000
15% - Saved $500,000 or more

How Much Does the Average Retiree Spend?

According to the Bureau of Labor Statistics, the typical household whose head of house is age 65 or older spent $44,664 in 2015.  That cost-of-living has probably increased since that time.

How Much Income Can the Average Retiree Expect?

Social Security is designed to replace approximately 40% of an employee's pre-retirement income, although many Baby Boomers mistakenly believe it will replace 90% of their income, instead.  In 2017, the average single retired person collects $1,360 in Social Security benefits.  The average couple receives $2,260 in benefits.   This translates to an income of $27,120 a year for a retired couple, far below the $44,664 the average household spends.  At a 6 percent return, only the people who have saved $350,000 or more (less than one-fourth of retirees) will have enough savings to make up the difference between their income and the average cost-of-living for the typical retired couple.

To make matters worse, many certified financial planners recommend retirees withdraw no more than 4% of their retirement savings per year at the beginning of retirement, and increase that amount very gradually, in order to be confident they will not run out of money during the remainder of their lifetime. This means they would actually need to have $450,000 or more in savings in order to maintain an average lifestyle.  Unfortunately, the vast majority of retirees do not come close to having that amount of savings.

What to do if You Have Not Retired Yet

If you are getting close to retirement, but you have not stopped working yet, here are a few steps you can still take to deal with a shortage in your retirement savings.

1.  Start cutting your expenses now, while you are still working, so you can adjust to your future cost-of-living and, at the same time, free up more income for savings.  It is better to make small sacrifices now, if it means you will be more comfortable later in life.

2.  Increase the amount of money you have going into an IRA, 401(k) or 403(b).

3.  Postpone retirement until age 70, which could increase your Social Security benefits by approximately 24% over what you would receive if you begin to collect at age 67.  This action alone could substantially reduce the amount of savings you will need during retirement.

4.  Pay off all your bills, including your auto loans and mortgages, if possible, to minimize your expenses during retirement.

5.  Discuss your retirement plans with a certified financial planner to make sure your savings are invested appropriately to maximize your earnings and growth.

What to do if You Have Already Retired

If you have already retired and realize you are going through your savings much more quickly than you expected, you may want to see if you can find a part-time job and reduce the size of your savings withdrawals ... or even postpone making additional withdrawals until you are older and unable to work.  This is the best way to maintain your independence and salvage your savings after retirement.

Retirees who are falling short may also want to see if they can find a less expensive place to live, cheaper car to drive, or make other adjustments to cut their cost-of-living.

Finally, if you are concerned about outliving your money, you may want to talk to a financial planner to see if you can increase your income without using up the principal you have saved.

If you are interested in more ideas about preparing financially for retirement, where to retire, common medical problems, 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 helpful articles.

For an overview of retirement planning, watch for my book, Retirement Awareness, which is being published by Griffin Publishing and will be available in 2018.

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

Photo credit:  morguefile.com

How to Find Jobs Late in Life

Many people nearing retirement age will need to keep working until they are in their 60s or 70s in order to have enough money to support themselves and their families.  However, sometimes people lose their jobs in their 50s, or they work in physically demanding jobs and know their bodies will not be able to take the punishment much longer.  What can people do when they need to change jobs late in life?

The good news is that it is quite possible to find new careers or less physically demanding jobs as you age. My husband and I have known a number of people who have started new careers in their later years.  For those who are having difficulty finding a new job on their own, there are many special programs to help them.

How to Find an Job After 50

Whether you are looking for a new job because you are no longer physically able to handle your current one, or because you were fired or laid off, especially during the Covid-19 pandemic, you may believe you are getting too old to find another career.  Some people talk themselves into the idea that no one will hire them after they have reached a certain age. However, you may be pleasantly surprised to know there are more opportunities than you realize, if you know where to find them.  Below is a list of organizations which could make your job search a little easier.

 

Jooble.org - This is a job search engine created for a single purpose: To help you find the job of your dreams! When you perform a search with Jooble, you'll get links to job postings from more than 22,305 different job sites throughout the USA that are the most relevant to your search terms. Jooble is created to save you time and energy, enabling you to find your desired job from a single query. Jooble's operation features work in the same way as any other search engine operates. Jooble does not compile all the information in its own database, but searches it out and does this much better other search engine you might use to hunt for jobs.

BankWork$ - This is a free training program which teaches people of all ages how to become bank tellers and customer-service reps.  They will also help you polish your resume and find a job.  

 
Department of Labor Job Centers - The Department of Labor operates over 2,000 American Job Centers which are committed to helping workers of all ages who either want to be re-trained or find a new job.  These centers are also called CareerOneStop.

 
The Senior Community Service Employment Program (SCSEP) - Although the Department of Labor program mentioned above is for people of all ages, SCSEP is specifically for unemployed people ages 55 and older who have low household incomes.  The program participants are paid the minimum wage while they get experience working for nonprofits and public institutions.  SCSEP is affiliated with the National Council on Aging (NCOA).  You can get more information on the NCOA website at https://www.ncoa.org/economic-security/matureworkers/scsep/ 

AARP Back to Work 50+ - This AARP program works with community colleges, nonprofit partners and workforce boards to help people over the age of 55 who do not qualify for SCSEP because their household income is too high.  You can call (855) 850-2525 for more information about the program.

Where Else Can You Find Help Getting a New Job?

If you have explored the above organizations, but are interested in seeing what other options are available in your community, here are a few additional ideas to help you find a new career, even if you are 55 or older.

Attend job fairs in your community - They may lead you to jobs you never considered ... either full or part-time, permanent or temporary. A wide variety of jobs can often be found at these local events.

Apply to your local community college - Local colleges frequently offer training programs and job placement assistance with businesses in the community.  Many of them offer training which meets the specific needs of factories, industries and businesses in your town.

Contact local unions and trade associations about job opportunities - At the very least, these organizations can often put you in touch with job training and apprenticeship programs.

Visit your neighborhood senior center - Senior centers not only hire senior citizens themselves, but they often know of job opportunities for retirees in your area.

 

You may also want to read "The 2-Hour Job Search: Using Technology to Get the Right Job Faster." It contains many resources to help you. 

Most important, do not give up your job search.  There are opportunities available, even for people in their 60s and 70s. Go to local retail stores and other businesses and politely ask to fill out an application, just as you did when you were younger.  Look for help-wanted ads in the newspaper and online. You need to keep searching until you find the opportunity which is right for you.  Remember, you have a lifetime of skills and experience to offer a prospective employer.

If you are interested in learning more about financial planning for retirement, where to retire, common medial issues, changing family relationships after retirement and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional 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 from the blog:  http://www.baby-boomer-retirement.com

Photo courtesy of morguefile.com