Gray Divorce or Divorce After 50

Divorce Happens at All Ages
(photo by morguefile.com)

Many people assume that their marriage problems will smooth out as they get older.  However, there are indications that this may not always be the case.  According to the National Center for Family and Marriage Research from Bowling Green State University, the number of couples who are getting divorced after the age of 50 has doubled in the past 20 years.  Baby Boomers are getting divorced even at the stage of their lives when they had once envisioned themselves traveling, having fun and living in empty-nest tranquility.

In 2008, over 300,000 couples over the age of 50 got divorced, and the number is expected to continue to increase in coming years.

What will be the consequences of these late-in-life divorces, sometimes called Gray Divorce?  For many couples, their already fragile retirement savings will be further depleted.  Homes and other real estate will be sold and any profits will be shared; retirement accounts will be split; investments, savings accounts and other assets will have to be divided.  This will put Baby Boomers who stay single in even worse financial condition than they were during their marriage.  They may also have difficulty selling their real estate if they get divorced during a bad real estate market.

On the other hand, some of those divorcing Baby Boomers can expect to remarry.  In fact, many boomers who are getting divorced are already on their second or third marriage, and are likely to marry again.  Therefore, getting divorced after 50 does not necessarily mean that you will spend the remainder of your life alone.

However, any couple who gets divorced late in life needs to consult with both an attorney and a financial planner, especially if they want to make sure that both of them will have adequate assets to survive, particularly if they do remain alone for the remainder of their lives.  Both partners need to have a clear understanding of their expected retirement income from Social Security and pensions, as well as the amount of income they can expect to receive from any investments they may have.

The majority of people in a gray divorce will need to carefully evaluate their situation and make sure they fully understand their finances and immediately take steps to preserve as many of their assets as possible and make whatever adjustments are necessary to their cost of living.

They also need to discuss the situation with their adult children and work out arrangements for holiday visits and other family events, so that everyone will be as comfortable as possible.  Divorce counseling is highly recommended, so you can discuss issues such as how you will treat each other (and your ex-spouse's potential future spouse or dates) at family events such as weddings, graduations, the birth of grandchildren, etc.

If you are looking for additional information about retirement planning, use the tabs or pull down menu at the top of this page to find links to hundreds of articles about retirement planning, where to retire, health concerns, family issues, etc.


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How Much Money Do I Need to Retire?

When Can You Retire?

In early 2011, on my way to work, I heard a disturbing news report.  Approximately 44% of Americans felt that they did not have enough money to be able to retire comfortably.  That number has only grown worse.  Millions of Baby Boomers are not prepared to retire.  In fact, since that report in 2011, the truth is that currently mover than half do not feel they have saved enough.

More recently, the CBS also reported that more people than ever before expect to work past the age of 65, primarily because they need the money.  Reality is beginning to set in for Baby Boomers.

The Retirement Situation for Baby Boomers

The November 2011 AARP Bulletin reported some alarming statistics.  While the exact numbers have changed a little since that time, they are roughly the same.

*  31% of people over the age of 50 have credit card balances

*  44% have mortgage payments on their home

*  In 50% of households of people over the age of 50, neither spouse is currently saving for retirement!

*  The average monthly Social Security benefit is $1,182 a month (that amount was closer to $1,200 a month by 2015, although that is still depressingly low).

*  In 2009, 22% of retirees relied on Social Security for at least 90% of their retirement income

*  In 2010, 56% of Social Security beneficiaries were women ... and they often receive lower benefits than the average man

These statistics paint a discouraging picture about the future financial situation of the aging Baby Boomers.  It may be time that more of us take a hard look at our investment income, and decide what we can do now to prepare for retirement.  Although many of us assume that we will just keep on working forever, the reality is that it isn't always possible.  Sometimes people get laid off in their 60's and find it difficult to find another job.  In other cases, our health declines and we simply are not physically capable of continuing to work.

What Are Your Plans for Assisted Living?

Finally, think about what will happen to you if you need to go into assisted living.  According to the Genworth 2011 Cost of Care Survey, the median annual cost of a one bedroom unit at an assisted living facility ranges from about $28,800 per person in Georgia to about $55,000 in Maine and Delaware.  It is an extraordinary $66,000 in Alaska.  Can you and your spouse afford to pay that?

There are options.  The time to purchase long-term care insurance is when you are young and relatively healthy.  Purchasing this insurance means you will have to save far less money to cover your future medical expenses.

How Much Will You Need to Retire?

The bottom line is that only you can figure out how much you will need to retire.  Start by looking at your benefit estimates from Social Security.  Compare that to your budget.  Look at the difference between the two amounts.

Are there areas in your budget that will disappear by the time you retire?  If possible, pay off all the bills you can.  Look at all the ways you can get your budget as low as possible by retirement.  Then compare the differences between the two amounts.

Let's assume you will still be short $800 a month or $9600 a year.  If you are going to follow the 4% rule, which financial planners suggest as a way to make sure your money lasts the rest of your life, then you need to save 25 times the $9600 a month in order to have enough money to retire.  That means, in this case, you will need to save $240,000.  Obviously, the sooner you start, the easier it will be to save this amount of money.

If you don't think you can save this much, you need to figure out how you will cut your expenses or increase your retirement income ... perhaps by postponing your retirement.

Start planning early for a successful retirement.

If you are interested in reading more about retirement planning, where to retire, health issues, and more, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles.

http://www.baby-boomer-retirement.com.

(Photo courtesy of Morguefile.com)

Work From Home and Make Money

Work Wherever You Want!

Whether you are just barely getting by, hoping to raise extra money for your kids' college expenses, saving for retirement, or supplementing your current retirement income, there are many good reasons you may want to earn extra money by working at home.  However, you may be uncertain about the different options that are available to you.

Most work at home opportunities fall into two different categories.  You can either offer a personal service, or you can work online.  Here are some options that you should consider:

Provide a Service 

Babysitting: Our family has hired bonded baby sitters several times while staying at out-of-town hotels.  On several occasions, the babysitters were older women who were earning a little extra money on weekends by registering with a babysitting service.  Another option is to become a licensed babysitter and provide childcare in your own home.  You could do it every day or, if that doesn't appeal to you, you may want to just host a "Mom's Day Out" or "Date Night" service.

Sell a Product:  Companies like Mary Kay Cosmetics, Tupperware and Pampered Chef all have independent sales people.  If you enjoy selling, this can be a fun way to supplement your income.

Teach a Skill:  Retired school teachers often earn extra money by tutoring children.  However, you don't have to be a retired teacher to earn money passing on a skill.  If you know how to play a musical instrument, speak a foreign language, or paint water colors, you can offer classes or private lessons as a way to earn money from home.

Make Money Online

Start an Online Store: With websites like eBay available, you can now easily sell your own crafts and artwork, or collect things from garage sales and thrift stores and sell them online.  It's a fun way to start a business without having to rent a location, spend a lot of money on inventory, or hire sales people.

Freelance Writing:  With sites like InfoBarrel.com you can write articles, post them on the internet and occasionally earn a little money from the advertisers.  You can see samples of the articles I have written there at www.infobarrel.com/users/deborah-diane. If you enjoy writing, you could also start a blog like this one.  Either way, you may not make a lot of money, but any extra income is always a good thing.  In addition, it is mentally stimulating to share your experience and knowledge by writing about it online.

If you are interested in staying-up-to-date with new developments that could affect your retirement plans, you may want to receive regular information through http://baby-boomer-retirement.blogspot.com/.

(Photo courtesy of photoxpress.com)

Tips for Healthy Cholesterol

Exercise Lowers Cholesterol
(photo by morguefile.com)

Are you trying to reach healthy cholesterol levels and postpone taking statins as long as possible?  Here are a few natural techniques that you can use for lowering your cholesterol.  They are all easy, and are certainly worth a try.

According to the RealAge website, in their article "Exercise and Cholesterol," combining daily exercise with a low-fat, high-fiber diet can improve your cholesterol levels within three weeks.

Aerobic Exercise Can Reduce Your Cholesterol

First, they emphasize that aerobic exercises, such as walking, swimming or cycling, can raise your good cholesterol (HDL) and lower your bad cholesterol (LDL).  It can also lower your triglycerides.  It is important to do the exercises every day, if possible.  Just taking your dog on a long walk a couple of times a day may make a big difference in your health.

Foods That Will Reduce Your Cholesterol

In addition to exercise and a diet that is generally low in fat and high in fiber, RealAge also recommends that you consume these 10 foods as an additional step in reaching lower cholesterol levels:  almonds, orange juice, olive oil, steamed asparagus, oatmeal, pinto beans, blueberries,  tomato products (such as tomato sauce), avocado and dark chocolate.

While you will still need to seek medical advice, and have your cholesterol levels regularly tested, there is nothing in this program that will harm anyone (unless they have allergies), and it is a healthy approach to getting lower cholesterol levels naturally.  As we all know, anytime we can improve our health and postpone taking medications, the better off we will be ... both medically and financially!

If you are looking for more health and retirement information, use the tabs or pull down menu at the top of this page to find links to hundreds of additional articles.

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