A Bit of Good News About Social Security

Do you think Social Security is
doomed?

Many people have heard for so long that the Social Security Administration is broke, that a substantial number of people believe that no benefits will be paid in the near future.  However, according to AARP and government estimates, this is not actually true.  In fact, this is one of the common myths about Social Security that needs to be dispelled.

The Truth about Social Security

First, although changes do need to be made if Social Security is going to be able to fully pay all the promised benefits for the next 100 years, there are a number of proposals under consideration that would solve these issues and fully fund the Social Security trust funds for the future.  When people say that "there will be nothing left when I retire," they are actually misinformed.

The Social Security trust fund can continue to pay full benefits until 2037, and about 75% of promised benefits after that ... and this is true even if they do absolutely nothing to solve the projected Social Security deficit. In even this worst case scenario, there may not be as much money available as we have been promised, but there will certainly be benefits paid to everyone who has earned them.  In addition, with a few little tweeks, such as raising the cap on the wages that are subject to the Social Security payroll tax, the shortage could be avoided and there could be enough money to meet all the promised future obligations.  One way or another, Social Security will be there when you retire, although you may not receive as much as you hoped.  In truth, most people cannot live on Social Security alone anyway.  Everyone should be saving as a way to supplement what Social Security does provide.

Few People Could Produce Better a Higher Income Than Social Security

Second, many people believe they could invest the money better themselves.  There is nothing preventing these people from investing some of their income in a 401(k) or IRA and seeing if this is true.  The truth is that very few people have managed to invest their money in such a way that they can get the return that Social Security will provide them.  However, it is highly recommended that everyone put aside as much money as possible in their own retirement accounts so they can have a more comfortable retirement than they could manage on Social Security alone.

Social Security is meant to provide a base of income for everyone who has worked during their adult life.  They receive this money whether or not they are able to invest their own money well.  Currently, Social Security provides the majority of retirement income for at least 1/2 of Americans over the age of 65.  In fact, it provides 90% of the income for single senior citizens.  If the government stopped collecting Social Security taxes and eliminated Social Security benefits, most of these people would end up on other government programs, such as welfare, and general taxes would have to be raised to cover those services.  Social Security works, and works well, for people who have worked hard all their lives and deserve a secure pension.

The Future of Social Security

Personally, I was relieved to read this information that was provided by AARP and based on government estimates.  I know that Social Security will be important to me and to other family members when I retire, and I encourage the government to take steps to keep the program healthy and capable of providing all the promised benefits. 

However, even if the current Congress fails to act responsibly, I am relieved to know that the program can keep going on some level until we have some responsible legislators who will make sure the program is solvent.

Meanwhile, I encourage you to write your Congressman and make your feelings known.

If you are interested in learning more about financial planning for retirement, where to retire, health issues or family relationships, use the tabs or pull down menu at the top of the page.  They contain links to hundreds of additional articles.

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

Photo courtesy of http://www.morguefile.com/

Source of information about benefits: http://www.aarp.org/work/social-security/info-05-2011/social-security-fears.2.html

New FDA Advice About Statin Risks

 

Statin drugs have been shown to be quite effective in lowering cholesterol levels. However, like nearly all drugs, there are some potential side effects that many people only vaguely know about.

Recently, the Food and Drug Administration issued new guidelines about statin risks, and I felt it was important to let our readers know about these risks so they could watch for any symptoms.  Below are the new guidelines from the FDA.

Good News About Statins

First, the good news.  It is no longer necessary for your doctor to routinely monitor your liver enzymes.  Serious liver injury from statin use is considered very rare.

Statins have been shown to be one of the most effective ways we have to lower cholesterol levels.

Potential Risks While Taking Statins

Memory loss, forgetfulness and confusion have been reported by some statin users.  Researchers have said that, when this occurs, they have found that the confusion can be reversed within weeks after stopping the statin. This may be the result of getting cholesterol levels too low. The brain needs a certain amount of cholesterol in order to function properly. Make sure your doctor is not over-zealous about lowering your cholesterol to the point where it affects your thinking.

Some people on statins have experienced an increase in blood sugar levels, which can lead to Type 2 diabetes.  The number of people who experience this increased risk appears to be small.  However, it is good to be aware of the possibility.

Some medications interact with lovastatin and can increase the risk of muscle damage.  (Since I take lovastatin, I was particularly interested in this potential health risk.)  The new labels for lovastatin are going to list what drugs to avoid taking with lovastatin, and the maximum dose of lovastatin you should take if these other medications cannot be avoided.  Since these drugs were not listed in the FDA article that I read, everyone who is on lovastatin needs to read the insert on their next prescription refill very carefully.

Sore muscles are another possible side effect of statin use.  My doctor suggested that I take 200 mg. of CoQ10 with my statin every day in order to minimize the muscle problem. I have been using this combo for three years and the combination seems to be working.

If you are looking for more heath and retirement information of important to Baby Boomers and retirees, use the tabs or pull down menu at the top of this page.  They contain links to hundreds of additional articles.

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

Photo of pills courtesy of photoxpress.com

Information about statin risks from the government website at: http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm293330.htm?source=govdelivery

Foods That Lower Your Cholesterol

Steamed vegetables, like asparagus,
are a great way to lower your
cholesterol.

Many of us want to avoid going on statin drugs to lower our cholesterol as long as we possibly can.  High cholesterol is a serious health problem that contributes to heart disease, strokes and may even be linked to Alzheimers, although that connection is less clear.  In either case, all of us need to be aware of our cholesterol numbers and do whatever we can to keep in line.

As a result, we need to understand the importance of keeping our bad cholesterol as low as possible.  Fortunately, the website RealAge.com has identified a number of foods that appear to lower our bad cholesterol ... when they are eaten on a regular basis.

Foods That Lower Cholesterol

Almonds
Orange Juice that is sterol-fortified (or sterol fortified margarine, milk, soymilk, and other foods)
Olive Oil -- about 2 tablespoons a day
Steamed Asparagus, as well as beets, carrots, eggplant, okra, green beans or cauliflower
Oatmeal -- enough to get at least 5 grams of soluble fiber a day
Pinto Beans -- half a cup every day
Blueberries -- they can be fresh, frozen or freeze dried.
Tomatoes -- aim for about half a cup of tomato sauce a day.
Avocado
Dark Chocolate -- Only about 1 ounce a day, containing 70% cocoa. What a wonderful way to end a day's menu full of these other delicious foods!

When I read this list, I realized that I eat everything on it ... sometimes.  There wasn't a single food that I had chosen to eat consistently every day, not even the chocolate.  This is probably one reason why I have found it necessary to begin taking a low dose of a statin now that I am in my 60's.

Since learning this information, I have switched to eating oatmeal for breakfast, treating myself to a small bit of dark chocolate every day, and trying to make sure that I eat one or two other things from the list, as well.  At the very least, these choices may help keep my arteries clear and could help be stay on a low dose statin.

Fortunately, we have statins available to help make up for our sometimes unhealthy eating patterns or a hereditary tendency to manufacture too much cholesterol.  However, even if you are prescribed a statin, you should still try to include as many of these foods as possible in your diet, too.  You may be able to use a lower dosage of statins if you make an effort to lower your bad cholesterol naturally!

If you are looking for additional health and retirement information, use the tabs or pull down menu at the top of this article.  They contain links to hundreds of additional articles on a variety of retirement and aging related topics.

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

Photo courtesy of photoxpress.com

Source for foods that lower cholesterol: http://www.realage.com/health-guides/foods-to-lower-cholesterol?src=edit&chan=health-guides&con=lm-article#fbIndex11

How to Increase Your Retirement Income

Interest and Dividend Income have
been discouraging in recent years.

If you are disappointed in your interest on savings, you are not alone.  Although many people love the low interest rates that are currently available for mortgages and auto loans, they hate the low rate of interest income they are getting on their savings.

For people who are retired, or near retirement age, this is an especially serious problem.  Until a few years ago, many people could get 6%, more or less, on a long term money market account or Certificate of Deposit.  However, today those rates of interest on savings are a thing of the past.  For retirees who were dependent on that income to meet their monthly expenses, this decrease in their retirement income has been devastating.  What are some steps you can take now to at least get the maximum interest rate possible?

Find Higher Interest on Savings from a Credit Union

Many people who have had a long relationship with a bank continue to keep their savings in that bank, without shopping around for a better deal.  However, if you have a bank savings account that is earning around 1% or less, you should be able to do much better by moving your money to a credit union.  Anyone living on a fixed income owes it to themselves to make sure they are getting the highest interest rate possible in order to avoid pulling money out of your principal in order to survive.

According to information about interest rates available to the public on DepositAccounts.com, you can earn as much as 1.40% on some CDs.  Although these rates are still low, they are higher than most banks are currently paying their account holders. 

You can find more out about credit unions that you can join in your area at aSmarterChoice.org.  You may also want to ask a friend or relative if they belong to a credit union.  All you need is an invitation from a current member in order to join many credit unions!

Be Careful When Purchasing Bonds and Bond Funds

According to an article entitled "The War on Savers" in the February/March 2012 AARP Magazine, current interest rates on shorter-term Treasury bonds are ridiculously low.  In addition, when you buy bonds, the value of the bonds will decrease when interest rates eventually increase.  Consequently, any income you currently earn from the bonds could be lost when interest rates rise and the bond price drops.  Junk bonds pay a higher rate than Treasuries or high quality corporate bonds, but are much riskier. These types of high risk investments are not a good idea for most retirees or people nearing retirement.

Put Some Assets in Dividend Paying Stocks

In addition to putting your savings in a credit union, another suggestion by the author of "The War on Savers" is to invest a portion of your savings in high quality dividend paying stocks.  You can either use the dividends for current income or, if you don't need the income yet, you can use a DRIP (Dividend Reinvestment Plan) to build up the size of your portfolio.

As you diversify and work to increase the income from your current assets, you may see your retirement savings begin to grow again.

The important issue here is to not just sit back and assume there is nothing you can do to increase the income from your savings.  There are actions you can take to assure yourself of a more comfortable income from the savings you have put aside.

If you are interested in other ways to improve the quality of your retirement, use the tabs or pull down menu at the top of this page for links to hundreds of additional articles on affordable places to retire, medical issues to consider, changing family relationships, financial planning and more.

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

Photo courtesy of photoxpress.com

The Best Sunny Places to Retire

Southern California is a fun and
sunny place to retire, as shown in
this mid-winter photo of Laguna Beach!

If you want to retire someplace that is sunny most of the year, there are plenty of locations available in the United States.  AARP, the American Association of Retired People, compiled a list of sunny places to retire. Since many retirees wish to live in a location where they can get outdoors the year around, this list will be a good place for them to start their search.

In order to make their list, the city had to have at least 250 sunny days a year, and have plenty of activities that are popular with retirees.  They also had to have a low crime rate, a strong local economy and a generally healthy lifestyle.  Since I have either visited or lived in several of these communities, I thought this would be a great opportunity to add some of my own comments about the cities they chose.  If you have additional thoughts about these communities, feel free to express them in the comments section.  The home prices listed here were the prices in about 2012.  You can assume that most of the prices are a bit higher today.

Sunny Cities in the United States

Asheville, North Carolina:  This community in the Blue Ridge Mountains is in an area where some of our friends live.  The community has museums, a live theatre, and frequent art fairs.  The average home sells for about $248,000, and the median income is $34,457 ... which puts in within the range of many retirees.  Surrounded by mountains and lots of outdoor space, this is a lovely area.  Although it may be sunny most of the year, it does get cold in the winter, so be prepared!

Grand Junction, Colorado:  This small city of 58,000 people is located in the high desert area of Colorado.  The average house costs $270,000, and the median income is $47,761.  For someone who wants sunshine, along with golf, hiking, ice fishing and skiing, this is the ideal location for you.  You get wide temperature swings in Grand Junction.  In the summer it can average 93 degrees; in the winter you can have snow and ice. 

Sarasota, Florida:  My husband grew up in this area along Florida's Gulf Coast.  Sarasota is a great town for people who have dreamed of retiring to the beach.  Sarasota has a population of 52,000.  The homes are quite expensive ... over $530,000 on average ... but the median household income is $36,742, so people are obviously finding affordable places to live.  If you go outside the town of Sarasota, you may find some better home prices a bit inland, and still be within easy driving distance of the beach.  The temperature gets quite hot in the summer, but is pleasant and mild in the winter. 

San Diego, California:  San Diego is actually a large city with a population of over 3 million people.  We have lived there, as has one of our daughters.  We currently live in Laguna Woods Village, a small retirement community about a one hour drive north of San Diego.  The photo above was taken by me from the cliffs along Laguna Beach, only 4 miles from our home in Laguna Woods Village.  All of Southern California actually has sunny weather and mild temperatures the year around.  If you are considering retiring to San Diego, you might cast a wider net and look at places to live from San Diego in the south to Santa Barbara in the north.  There are hundreds of wonderful, sunny small towns throughout Southern California, and most of them are within an easy drive to the beach as well as museums, theatres, and many fun activities.  Unless you are willing to live inland, home prices in Southern California are expensive.  For example, the average home price in San Diego is $646,000.  However, prices drop substantially as you move inland.  Some of the retirement communities are quite affordable, too.  While home prices in Laguna Beach average over $1,000,000, condominiums in nearby Laguna Woods Village have an average price of about $250,000.  Sunshine, beaches and outdoor activities like golf and tennis are plentiful throughout Southern California.

Las Cruces, New Mexico:  Las Cruces is almost always sunny.  In fact, it is sunny an average of 350 days a year!  AARP Magazine actually lists Las Cruces as a "retirement dream town."  Home prices average only $178,000 and the median household income is about $37,471 ... well within the means of many retirees.    There are plenty of recreational activities, too!  It is a lovely, charming community that is very appealing to people who want to live in the Sun Belt.  I have driven through Las Cruces during cross-country trips, and it does get quite hot in the summer!

San Luis Obispo, California:  San Luis Obispo is often nicknamed SLO ... and the nickname fits.  It is a very relaxed, slow-paced small city, and absolutely lovely.  My husband's sister has retired nearby in the small town of Avila Beach, one of several charming beach towns near SLO.  San Luis Obispo was actually named one of the happiest places in the world by writer Dan Buettner in his book "Thrive."  The average home in SLO sells for $695,000 and the median household income is $38,000.  There are affordable places to live there, although the cost of living is higher than other places on this list. 

St. George, Utah:  This small community is about 130 miles from Las Vegas, the nearest large city.  The average house sells for $311,000 and the median household income is $46,000.  This is a beautiful area, with golf courses and gorgeous vistas.  About 70% of the residents are Mormon, and there are only two state-owned liquor stores in the area; so, if you are a big drinker, this may not be the best community for you.  Another concern is the fact that the nearest major medical center is in Las Vegas.  However, most residents have long life expectancies, so this may not be a concern for you!

Santa Fe, New Mexico:  Santa Fe is a fascinating mixture of Spanish, Native American and modern American cultures.  It is an artists' colony, as well as a mecca for people who love music, including the symphony and opera.  The average home sells for $433,000 and the median household income is $52,000.  It is a small city, with a population of only 68,000.  In addition to modern medical facilities, this is also a popular location for alternative healing and holistic medicine.  It has been listed as one of the 10 healthiest places in the US to live!

Bend, Oregon:  Bend is the sunny inland area where many residents of Oregon travel to get out of the frequent coastal rain.  It is in the high desert, about two hours southeast of Portland.  The average home price is $427,000 and the median household income is $53,177.  One of the upsides of living in Oregon include paying no state taxes on your pension income. 

Fort Worth, Texas: My husband and I lived for 25 years in the Dallas-Fort Worth area of north central Texas, and we have a number of friends who have chosen to retire in that area. The summers get very hot ... often over 100 degrees.  The winters tend to be mild, although so-called "Blue Northerns" do occasionally bring frigid temperatures to this area of Texas.  However, people can golf,  play tennis, go boating and enjoy other outdoor sports almost the year around.  This area of Texas is surrounded by over 100 lakes, so you may want to expand your search outside the major cities to some of the lovely lakeside subdivisions in the area.  Within the city of Fort Worth, the average home sells for $148,000 and the median household income is $47,634.  Texas also has the advantage of no state income taxes at all, although property taxes are higher than in other states.

If you want to enjoy sunshine most of the year, any of these communities could be a good choice for you.  Remember to expand your house hunt outside the immediate area of the towns and cities mentioned.  There are a lot of wonderful communities in the U.S. sunbelt!  If you know of other communities that may interest readers, feel free to mention them in the comments sections.

If you are looking for more retirement ideas, use the tabs or pull down menu at the top of the page for links to hundreds of other articles on a wide variety of topics of interest to retirees and Baby-Boomers.

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

Photo from personal collection of author.

Home prices, household income and other data from http://www.aarp.org/home-garden/livable-communities/info-11-2011/10-Great-Sunny-Places-to-Retire-AARP.11.html