Living with your Adult Children

While most of us cannot imagine living with our children as we age, it has become a reality for a growing number of senior citizens.  Sometimes, it is by choice.  The adult children look to their parents for help with baby sitting or similar assistance.  In other cases, it is because the senior citizens can no longer afford to support themselves on their meager retirement benefits.  Sometimes it is because they have developed dementia or health problems and the children take in their parents so they can care for them.  In some families it is normal for several generations to live together.  Whatever the reason, there are a number of issues you may need to consider before deciding if this is the right decision for you.

What If You Cannot Support Yourself as You Age?

In the last few years, my husband and I have known a few local retirees who had to move in with their adult children.  In every case, this was the last thing they ever expected to have happen in their later years. Apparently, this has actually become an increasing trend.  According to the AARP Bulletin for September 2012, in an article entitled, "When Parents Move In With Kids," as recently as 2011 there were 4.6 million parents living with an adult child.  This was a 13.7 percent increase from just three years earlier, in 2008.  The numbers continue to grow.

Since so many retirees lost substantial amounts of their savings during the 2007 recession, there have been increasing numbers of retirees who simply do not have enough money to live on their own.  Many of them also lost their homes to foreclosure.  If they were laid off during this period of time, they may have had to take Social Security early and, consequently, their income is not enough to cover their expenses.  In addition, they may have run through their savings or suffered substantial losses in the stock market.

Other Reasons You May Need to Live With Your Children

As mentioned above, there are also other reasons why retired senior citizens may find themselves living in their children's homes.  Sometimes it is their declining health which makes it difficult for them to care for themselves.  In other cases, it may be declining mental function. 

There can also be positive reasons why they might move in with a child.  For example, the child may want them to take care of the grandchildren.  In some families, it is common for the several generations to live together.  It can also make it possible for the families to purchase a home when the resources of two generations are combined.

Why a Written Agreement May Make the Transition Easier

When parents move in with their adult children, AARP recommends that the new living arrangement will be more comfortable for both the parents and their children if they set up a few ground rules in advance.  In fact, AARP suggests that both the parents and adult children write down the agreement, to avoid misunderstandings once you move in.  It may seem awkward to have a written agreement with your child; however, it could avoid a lot of problems in the future.  Listed below are some of the topics that you need to discuss and resolve in writing before you move in.  Feel free to add any other issues that concern you or your child.

Questions to Answer before Moving in with the Kids

How much will you contribute financially?
Who will pay for extra expenses such as a home healthcare aide?
Are you expected to help with chores, babysitting, running errands, etc.?
Will you travel with the family on vacation, and who will pay?
If you have a pet, can you bring it with you?
Will you have at least a private room and sitting area in their home?
Will there be a problem if you smoke or drink alcohol?
If you lose your driver's license, are they able to provide transportation for you?
If you pay your child for your care, what will the tax consequences be for them?
If you give them money, how will it affect Medicaid if you need a nursing home later?
If you purchase a new home with your child, what future problems could this cause?
If you have other children, will this living arrangement affect your will?
Will your other children have you stay in their homes periodically?
What social activities will there be for you to do?
If you are single, will it make your child uncomfortable if you date?
How do they feel about overnight guests, especially a boyfriend or girlfriend?
If your adult child is single, how will you feel about them bringing home dates for the night?

Seeking Professional Help before Living with Adult Children

As you can see, you may need professional help in order to answer some of these questions.  Check with an elder care lawyer or financial planner in order to help you both make the best decisions for your family.  If you have difficulty reaching agreement on some of these topics, don't simply move in and expect that everything will work out. 

You may also need to consult a family therapist to resolve issues that could cause stress in your relationship.  For example, does your adult child want you keep your mouth shut when it comes to the way they are raising their kids?  Are you willing to do that?  If you think that might be hard for you, then you may need to seek a different place to live.  After all, you are moving in with their family, and you want to create as few problems as possible.

Alternatives to Living With Your Children

You may not have considered alternatives to living with your adult children.  If you have financial issues, you may qualify for a senior apartment at an affordable price or a Section 8 voucher that will pay part of your rent.  You may also be qualified for Supplemental Security Income (SSI) and/or food stamps and help with your Medicare premiums.  With a little financial assistance, you may be able to maintain your privacy and continue to live on your own.

If you have mental or medical issues that mean you need assisted living, you may be able to apply for Medicaid to get your expenses covered in an assisted living or skilled nursing facility, including one for memory loss.  This would relieve your children of the burden of caring for you and would be safer than being left alone while your adult children go to work.

Remember:  If you are hesitant about moving in with your adult children for any reason, seek help from your local Social Security and Social Service offices.  They can let you know what services you are eligible to receive.

If you need more information to help you get the retirement help you need, use the tabs or scroll-down list at the top of this page.  They contain links to hundreds of additional articles on where to retire, medical information, financial planning, or changing family relationships.

You may also be interested in reading:

Healing Relationships with Your Adult Children
Retiring Former Hippies Spark a New Generation Gap
Cheap Places to Retire
Best Places to Retire in the United States on $100 a Day
Part-time Retirement Jobs for Baby Boomers

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

Photo courtesy of photoxpress.com

Garden Spot Village Community for Seniors in PA

Are you looking for retirement communities located in small towns or rural areas?  One possibility is Garden Spot Village on the outskirts of New Holland, Pennsylvania.  This community for seniors in located in Lancaster County which is frequently referred to as the Garden Spot of the United States.  Although this retirement community is in a rural area, surrounded by spectacular views and an abundance of nature, you will find that it is also within driving distance of several large metropolitan areas including New York, Philadelphia and, a bit further away, Washington, D.C. and Baltimore.

Activities at Garden Spot Village

The heart of Garden Spot Village is the Village Square, a spacious building containing a sunny atrium, an indoor park, an exotic fish aquarium, a bank, mail center, small general store, a chapel, a beauty salon and an internet cafe.  Also located on the ground floor of Village Square is the heated indoor swimming pool and the superb fitness center.  Everything you absolutely need is conveniently located.  The community has planned activities, a choir, an annual marathon and exercise classes.  There is no reason to be lonely or bored in this friendly community.

Housing Choices at Garden Spot Village

New residents have a wide range of housing choices.  You may choose the Village Square Apartments that are attached to the Village Square, with sizes ranging from about 1500 to 1900 square feet.  Other nearby apartment buildings have sizes ranging from 725 to 1700 square feet.  However, for those who prefer something more private or spacious, you can select one of the lovely attached cottages or carriage homes.  The cottages range in size from 1088 to 1318 square feet, and the carriage homes are availabe in sizes up to 2029 square feet.

Medical Support at Garden Spot Village

As we age, we may not be able to manage quite as well on our own.  If this happens to you or your loved one, there is no need to leave your friends and activities at Garden Spot Village.  They have several options to make life easier for residents.  You can request the assistance of a part time aide  to help out in your own residence or you can move into the Mountain View independent living suites.  Those who develop dementia may choose to live in the Laurel Memory Support facility; patients with more serious medical issues or who need post-surgical temporary assistance may choose to stay in the skilled nursing facilities known as The Households.  Garden Spot Village also offers respite care, which gives family caregivers the opportunity to get a much needed break, as well as adult day services.

In addition, nearby Ephrata Community Hospital operates a clinic just inside the gate to Garden Spot Village.  This makes it possible for residents to walk to their doctors' appointments, pick up prescriptions, get lab work done, have an x-ray, and receive other medical services. 

Once you move to Garden Spot Village you can be confident that you have chosen a community where you will want to spend the remainder of your life.

If you are interested in living somewhere besides Pennsylvania, use the tabs or the pull down menu at the top of this post to find links to hundreds of additional articles.

In addition, you may want to read:

The Best Sunny Places to Retire
Cheap Places to Retire
Finding Niche Retirement Communities
Best Places to Retire Outside the US

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

Photo of grazing deer in Pennsylvania courtesy of morguefile.com

Why Retire in Puerto Rico, the US Virgin Islands or Guam

According to a MarketWatch article mentioned in finance.yahoo.com, entitled "7 Money Matters to Consider if Retiring Overseas," there are more Americans than ever who are making plans to retire to another country.  They don't want to give up their U.S. citizenship; they just want to try living somewhere that is less expensive. 

Since many Americans lost a large part of their retirement funds in the past decade, the desire to live in a cheap, exotic location is greater than ever. In fact, The Social Security Administration reports that the number of people receiving their benefit checks overseas has grown from 242,000 in 2002 to 613,000 in 2014. 

The Market Watch article listed some of the issues that Americans should consider before they make a move to another country, and the author repeated over and over again the importance of getting professional assistance and expert advice from attorneys and estate planners who have experience in this area.  In fact, you may want to first consult an American attorney, and then work with attorneys, accountants and tax professionals in the country where you plan to reside.

Professional Assistance is Needed for these Issues:

Foreign income tax issues
U.S. income tax issues while living in a foreign country
Income taxes owed to your former state of residence
Fees for transferring Social Security to foreign banks and converting currency
Foreign health insurance (Medicare doesn't cover Americans living abroad)
Foreign real estate investments
Foreign securities investments
Estate Planning - especially if you want to transfer foreign assets after your death

Retire to the American Territories of Puerto Rico, the US Virgin Islands, American Samoa, Northern Mariana Islands or Guam

If dealing with these legal and financial problems overwhelms you, it is important to know that you can move somewhere inexpensive and exotic without the complications mentioned above.  Rather than live in another country, you could choose to move to one of the U.S. territories.  Living in Puerto Rico, the U.S. Virgin Islands, American Samoa, the Northern Mariana Islands or Guam will give you all the advantages of retiring somewhere far away and romantic, without the necessity of learning a new language, finding foreign lawyers, securing foreign health insurance, and worrying about the complications of filing foreign taxes or owning property in a foreign country.

Living in Puerto Rico

While living in Puerto Rico is not as cheap as living in a third world country, rents are affordable once you get outside of the major cities like San Juan.  You do not need a passport to travel to any of the US territories.  In Puerto Rico, there are no inheritance taxes.  If you buy land in Puerto Rico, consult with an attorney, and make sure that you have title insurance and a clear legal title to the land in order to avoid future legal complications.  However, the good news is that there are no restrictions on American citizens who want to own property in Puerto Rico.  Puerto Rico has beautiful beaches as well as gorgeous mountain towns.  There are a variety of climates from which to choose.  In addition, your Medicare is valid in all the US territories.

Living in the U.S. Virgin Islands - St. Thomas, St. Croix and St. John

Like Puerto Rico, if you move to the U.S. Virgin Islands you do not need any special documents.  You can travel freely to and from these tropical islands.  Among the islands that make up the U.S. Virgin Islands are St. Thomas, St. Croix and St. John.  If you have a beloved pet, it is possible to bring it with you when you move to this Caribbean paradise.  Some cell phone carriers offer free long distance to the mainland.  There are currently no large malls on the islands, although there are a few popular stores such as Tommy Hilfiger and Polo.  The weather is fairly constant, with high temperatures normally in the 70's and 80's.  Severe rain is unusual.  There is no sales tax or state tax.  New residents should also realize that this is a laid back, slow paced Caribbean territory, so don't expect things to happen on a mainland schedule.

Living in Guam and the nearby Northern Mariana Islands

Guam, in the northwestern Pacific Ocean, along with the other Northern Mariana Islands, is a beautiful island territory that is often compared to the smaller, less populated islands of Hawaii.  Pets can be brought here after a short quarantine period.  It is a pretty island, and the high temperatures are typically in the 70's and 80's.  It is a popular area for anyone who loves to scuba dive or snorkel.  It is very laid back, with low speed limits and slow moving traffic.  It is also only a four hour flight to Japan and South Korea, if you want to vacation in one of those destinations.  There is a large U.S. Navy base located on Guam and, like the other territories, U.S. laws are enforced there.

American Samoa

Another option is to move to American Samoa, in the South Pacific.  The disadvantage is that it is along way from the mainland of the United States and it is an expensive flight home.  However, most of the 55,000 to 60,000 residents speak English as well as Samoan and it is a very patriotic location, with the highest level of military recruitment of any state or territory.

Sources:

http://www.fool.com/investing/general/2014/08/24/retirement-more-boomers-head-overseas-for-cheap-li.aspx

http://www.marketwatch.com/story/7-money-matters-to-consider-if-retiring-overseas-2012-07-26

If you are interested in other overseas retirement destinations that are outside the US, use the tabs or pull down menu at the top of this article for links to hundreds of additional articles.  You may also want to read:

Best Places to Retire Outside the US
Americans Retiring in Panama
Live in Ecuador Comfortably on Social Security
Retiring in Luxury to Hua Hin, Thailand

You will find additional articles using the tabs at the top of this page ... particularly the one that focuses on places to retire overseas.

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

Photo or modern Puerto Rico courtesy of www.morguefile.com

Best Places to Retire in the United States on $100 a Day

Whenever I find a high quality list of good places to retire, I try to pass that information on for my readers to review.  In 2012, AARP Magazine and AARP.com released their 2012 list of great places to live on $100 a day.  This amounts to $36,500 a year, which they estimate would result in an after tax income of $27,375 a year or $2281 a month. (Note:  Due to inflation, I suggest you add 3% to the home prices and cost of living for every year you read this after 2012.  In other words, if you are reading this in 2015, add 9% to the financial figures you see here.  The principle still remains, however, that these locations are affordable and could be good retirement locals for people who will be retiring on Social Security alone.)

This level of income is well within the reach of many retirees, especially couples.  If one spouse has Social Security benefits of $2000 a month and their spouse will receive $1000 a month, they could afford to retire in one of these communities. 

One of the requirements that AARP had in determining the best places to live on $100 a day was that they had to have "affordable luxuries".  They defined this as cities with cultural attractions like museums or symphony orchestras, sports teams, great places to eat, and homes that sell for about $192,000 or less.  In those instances in which I have spent time in a city, I have added my own comments to the AARP list.

2012 List of Best Places to Live on $100 a Day (Prices May be 5 to 10 Percent Higher, Now)

San Antonio, Texas:  San Antonio is a charming town that is sunny 263 days a year.  The median home price is $135,000.  There are plenty of libraries, museums, golf courses and other affordable luxuries in this city.  As a former resident of Texas, we have visited this city several times during the months of July and August and it is important to disclose that San Antonio gets HOT in the summer.  However, one delightful way to cool off is to take a stroll along the famous Riverwalk (pictured above) and perhaps have a cool beverage in one of the numerous sidewalk cafes.  It's right across the street from the Alamo.

Roanoke, Virginia: Roanoke is in the Blue Ridge Mountains of Virginia.  It is sunny 217 days a year and has a median home price of $151,500.  The city hosts half a dozen festivals every year, and the downtown area has a planetarium, theater and museums.  One of our daughters went to college in nearby Lexington, Virginia and you should know that this town is about a four hour drive from Washington, DC, in a very rural part of Virginia.  However, it is also in an absolutely gorgeous part of the United States, and is a lovely location for enjoying fall foliage.

Las Cruces, New Mexico:  Las Cruces is in the high desert of New Mexico, which means you can expect very hot summers.  We have stayed in this town while driving across the country and love the desert landscapes.  However, the scenery may not appeal to everyone.  There are 287 sunny days a year, and the median home price is $148,000.

I have not stayed in the remaining towns on the list, so I will only list the main statistics here.  To read more, you can see the full descriptions at Best Places 2012.  I just wanted to make sure that I brought these great cities to your attention, so you could add them to the locations you are considering for retirement.

Spokane, Washington:  Spokane has 176 sunny days a year, with a median home price of $145,000.  It's a great city for people who love outdoor sports, whether it is fishing or skiing.  As most people realize, Spokane is much rainier than many other popular retirement locations.  However, we have friends who retired in this area, and they love it!

Eau Claire, Wisconsin:  Eau Claire is another location that is popular with people who enjoy outdoor sports, especially in the winter.  It has 200 sunny days a year and a median home price of only $121,100.  It is also home to a branch of the University of Wisconsin which provides lots of cultural, entertainment and adult education possibilities.

Morgantown, West Virginia:  Morgantown is a small college town in the center of Appalachia.  It boasts an excellent healthcare system.  There are 185 sunny days a year, and a median home price of $168,900.

Pittsburgh, Pennsylvania:  Pittsburgh is no longer a city that is defined solely by the steel industry.  With a wonderful symphony orchestra and a beautiful waterfront, it has become popular with retirees.  The 194 sunny days and median home price of $106,500 is very appealing, too.

Omaha, Nebraska:  Omaha is a Midwestern city that has become popular with high-tech companies in recent years.  It has a symphony and the largest community theater in the United States.  Omaha has 193 sunny days a year, and a median home price of $123,500.

Grand Junction, Colorado:  Grand Junction is a lovely town only a few hours away from the gorgeous ski slopes of Vail and Aspen.  It also has 214 sunny days a year, and a median home price of $159,800.

Gainesville, Florida:  Gainesville is home to the University of Florida, as well as the Florida Museum of Natural History.  It has 205 sunny days a year, and a median home price of $125,000.  Florida has long been considered a retirement mecca because of low home prices and low taxes.  It does get very hot in the summer.

Here is information about other wonderful places you may want to put on your retirement list:

The Best Sunny Places to Retire
Cheap Places to Retire
Best Places to Retire Outside the US
Finding Niche Retirement Communities

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

Photo of the San Antonio Riverwalk courtesy of www.wikipedia.com/commons

Pros and Cons of Social Security Privatization

Social Security privatizaton has been under consideration since George Bush suggested it in 2005.  However, after the Great Recession hit in 2008, many people were shocked to see their stock portfolios and mutual funds crash.  Those who were forced to retire in 2009 were frequently left far worse off than they had ever anticipated.

Recently, the subject of Social Security privatization has resurfaced because of the nomination of Paul Ryan as the Republican candidate for Vice President.  In 2010, Mr. Ryan proposed in his work "Road Map for America's Future" that workers should be allowed to divert one-third of their Social Security taxes into private accounts that individuals could invest and control.

Politics aside, this is a subject that needs to be respectfully analyzed.  What are the pros and cons of Social Security privatization?

Pros of Social Security Privatization:

My husband has been an institutional stockbroker for 41 years.  He has pointed out to me that people in the investment business would stand to earn much more money, since billions of dollars would be invested in the stock market.  This would provide a huge influx of capital that would be invested in large corporations, mutual funds and financial markets.  This would raise incomes for people in the investment business.

In a bull market, successful investors could make more money than the guaranteed amount from Social Security. During those bull market years, people could retire with a large nest egg, which is what Mr. Ryan concluded in his analysis of the benefits of privatization.

Cons of Social Security Privatization:

If people could remove money from their Social Security investment accounts over the years for things like down payments on homes, medical costs or educational expenses, many people would raid their accounts regularly, just as they now raid their IRA's.

However, it is possible that raiding Social Security savings would be strictly forbidden.  Even so, not everyone would retire in a bull market.  Every few years, some people would be retiring in a bear market, which could mean that they would be worse off than if they had chosen to take traditional Social Security.  It would be a type of Russian roulette.

Some people would make investments that turned out to be disastrous.  Remember those who invested in Enron or put all their retirement savings with Bernie Madoff?  In both cases, they lost nearly everything.

For those people who did choose to invest one-third of their Social Security taxes into private accounts, and lost it, their traditional Social Security benefits would be cut by one-third.  Most retirees can barely survive on Social Security alone right now.  Losing one-third of their benefits would be devastating.

People can already put money in personal retirement accounts that they manage themselves.  Unfortunately, research shows that many of them spend that money during the first few years after they retire, rather than spreading it out over their lifetime.  Although investment planners recommend that people never withdraw more than 3% - 4% of their retirement savings in a single year, far too many people exceed this amount and run through their savings quickly. 

Would the government have to spend substantially more on low cost housing for the elderly, special supplemental payments and food stamps for all those who lost that portion of their Social Security taxes that they had managed and invested themselves?  Would the government be spending less on Social Security, only to spend more on providing supplemental income?  Although it is impossible to predict the future with absolute assurance, it is possible that what started out as a Christmas gift for people in the investment field could become the Grinch who stole Christmas for future generations of taxpayers and retirees.

Other Options for Saving Social Security

There are ways, other than privatization, that could help put Social Security on solid ground.  Social Security taxes could be collected on incomes above $110,000.  The retirement ages could all be raised by one year, including the age of early retirement, which is currently 62.  In fact, the age of early retirement could be raised to age 64.  If someone is disabled, they could still collect disability.  However, able-bodied people would be better off waiting to collect Social Security until age 64, at the very least.  These modest adjustments would insure that Social Security benefits could be paid in full for many decades.  (Disclosure:  I am 63, so these changes could affect me.  However, if they strengthened Social Security, they would be worth it.)

Another suggestion that could be made to Social Security is raising the tax from 15% (half paid by the employers and half paid by the employees) to 16%.  Some people have also suggesting reducing the Cost of Living Adjustments that retirees currently receive.  They would still receive a COLA, it would just be smaller.  Needless to say, theses ideas are not popular, but they would be effective in saving Social Security for future generations, and they may honestly be the changes that must be made.

Conclusions:

There are certainly both pros and cons to the idea of Social Security privatization, and undoubtedly there would be both winners and losers with this change.  However, since it seems to be a topic of consideration again, it is important that we carefully discuss the advantages and disadvantages, as well as other options for saving Social Security.  What do you think?

Other articles that may interest you are:

Do You Need a Million Dollars to Retire?
Retirement Deferred by Parent Student Loans
Retirement Income from Annuities or Investment Income
Cheap Places to Retire

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

Photo courtesy of www.morguefile.com

How to Treat Chronic Pain

While people of any age can experience pain, as we grow older we are even more likely to experience chronic pain.  It may be back pain, migraine headaches, neck and shoulder pain, or overall pain.  The pain can be caused by a variety of reasons, including overly aggressive exercise and health problems. 

Often we simply reach for the nearest over-the-counter NSAID pain reliever, such as Tylenol or Aleve, and hope that these pain relief pills will help us to feel better in the morning. 

Dr. Oz Alternative Treatments for Chronic Pain

If you develop chronic pain and you do not want to take pills every day for it, you may want to try some of these alternative treatments that recently were mentioned on The Doctor Oz Show.  For more information about them, you can get detailed information at DoctorOz.com.

The first of the pain solutions that Dr. Oz mentions on his website is called Gua Sha.  This treatment for back pain is provided by a licensed acupuncturist and involves scraping the skin's surface with a special instrument.

Although Dr. Oz did not mention in this article the advantages of getting a traditional acupuncture treatment using needles, I personally used this ancient treatment when I developed a stiff neck a few years ago.  It worked surprisingly well, and the beneficial effect has remained, despite the fact that it has been over four years since I last saw the acupuncturist.

The second pain management technique suggested by Doctor Oz was botox for migraines.  Botox is a powerful muscle relaxant and can be effective at relieving tension in the forehead and neck.  Many women who have had botox to reduce their wrinkles have also experienced the pleasant side effect of fewer migraine headaches.

The third pain reliever mentioned by Doctor Oz was HVLA.  This is similar to chiropractic manipulation, but it is performed by an osteopathic doctor.  Again, although Dr. Oz did not mention seeing a chiropractor, members of my family have been very happy with the pain relief they have received from chiropractic manipulation.

The next method of pain management that he mentions on his website is called Radiofrequency Ablation, which uses a radio wave to treat pain anywhere in the body, including the back, neck and even your feet!  If you suffer from overall pain, and you cannot get relief any other way, you might ask your family doctor to recommend someone who is trained to do Radiofrequency Ablation.

Dr. Oz also recommended some cheap treatments for chronic pain that cost less than $10.  His list included:

Helichrysum Oil - available from health food stores
Hot and Cold Packs
Medicated herbal plasters

He also suggested that people use a telephone headset, rather than cradling a phone on their shoulders, which is apparently a common cause of neck and shoulder pain.

Since so many of us suffer from chronic pain, it is important to stay up-to-date with alternative treatments, especially any new treatments or unusual ones.  There is no reason to suffer unnecessarily.  If we can relieve our chronic pain, even a little, it will improve our quality of life, and keep us much more active after retirement.  It is not much fun to quit working, only to discover that pain keeps us from doing many of things that we had anticipated being able to do after retirement.

If you are interested in learning more about medical issues that can affect us as we age, financial planning, where to retire, or 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 may also be interested in reading:

How to Prevent Bone Loss from Osteoporosis
Brain Activities to Lower Alzheimers Risk
Natural Cures to Stop Snoring
Your Medication May Be Causing Your Depression

To read more about Dr. Oz's recommendations for pain relief, the link to his article is:

http://www.doctoroz.com/videos/best-solutions-your-pain?page=3#copy

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

Photo courtesy of morguefile.com

Watch 'Hope Springs' for Baby Boomer Couples

The movie "Hope Springs" is a thought-provoking film for Baby Boomers who are either married or in a long term relationship.  My husband and I viewed this movie with two other couples who have also been married over 40 years.  When we discussed it afterwards, we agreed that we had all enjoyed it, and we acknowledged that it had brought up some interesting issues in our own relationships.

Plot Summary of "Hope Springs"

The movie is about a couple, Kay and Arnold, who have been married 31 years.  They now sleep in separate bedrooms, and have very little intimacy left in their relationship.  Kay arranges for the two of them to spend a week in intensive marriage therapy in the town of Great Hope Springs, Maine.

Kay is played by Meryl Streep, her husband Arnold is played by Tommy Lee Jones, and their therapist is played by Steve Carell.  With this cast, the movie could have easily slipped into being a silly, light-hearted situation comedy, but all of the actors play their parts with sincerity and honesty.  The topics that are discussed in the movie are subjects that are difficult for most couples to discuss, and the actors are able to portray that discomfort convincingly.

This Movie Could Enhance Your Own Relationship

This movie is designed for a narrow audience, primarily people over the age of 50 who are in committed relationships and, because of this, it will surely never be considered a blockbuster movie for any of these actors.  Performing in this film almost certainly was a labor of love.  However, for those who are open to seeing it, just viewing this movie could bring life back into a marriage that has slipped into boredom and repetition.

What better gift can we give each other, as we prepare for retirement, than to bring enthusiasm and romance back into our lives?

If you are interested in reading more about changing family relationships after retirement, where to retire, financial planning, medical issues and more, use the tabs or pull down menu at the top of the page to find links to hundreds of other helpful articles.

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

Photo:  wikipedia.com/commons  User: PhotoTakeReality

Retirement Postponed by Parent Student Loans

When our youngest daughter graduated from college eight years ago, the father of one of her roommates made the comment that he would probably be paying off student loans for his children for the rest of his life.  Sadly, he died six years later, still carrying the burden of those loans.  Unfortunately, his situation is not uncommon.  Many parents in their 50's who take out student loans to pay for their children's college education will not live long enough to pay off those student loans.  As a result, an unknown number of senior citizens have to postpone their own retirement because of the debt they took on in order to get their children through college.

Retirement Destroyed by Student Loans

An article I recently read startled me.  The title was "Baby Boomers Beware: Many Paralyzed by Burden of Student Debt; Parents Sacrifice Financial Stability in Down Economy to Support Children Pursuing Degrees."  (That is one exhaustively long title, by the way!)

The article was distributed by PRWeb, and bemoaned the fact that many parents sacrifice their own financial security in order to pay for their children to attend college.  According to FinAid.org, the student loan debt carried by parents amounts to approximately 10% of outstanding total student loan debt.  Often parents will continue to pay these loans for 15 to 20 years after their last child has graduated from college.  This means that many Baby Boomer parents will be paying for their childrens' educations well into their 70's!  Although some have petitioned the government to consider a program of student loan forgiveness under certain circumstances, to date this movement has been unsuccessful.

Since the focus of this blog is geared towards helping Baby Boomers have the type of retirement they desire, the burden of these parent student loans can be crippling and may even prevent many of them from ever being able to retire at all!

High College Tuition Contributes to this Problem

The problem of student loan debt has become even more serious since the cost of tuition at the average university has quadrupled over the past 30 years.  In addition, a little over a decade ago the U.S. federal bankruptcy laws were changed so that even a bankruptcy does not make it possible for either parents or students to rid themselves of student debt.  It almost seems like a joke that student loans are considered financial aid, since they frequently to not provide aid but rather a burden to students after they graduate!

How to Reduce Student Loan Debt for Both Parents and Students

If you want your student to attend college, and you cannot afford to easily pay for it, what options do you have?  Your first step will be to try to reduce the amount of debt you have to take on, since it is nearly impossible to get rid of the debt, once you have incurred it.

The same article mentioned above made these suggestions:

* Students should live at home and attend a community college for their first two years of general education courses.  If there is a state college within driving distance of your home, students should consider living at home for all four years of college.

* Students should apply for every possible grant or scholarship.

* More than ever before, students should consider whether their choice of major will support their potential loan balance. (Ironically, this may mean that many students should not attend expensive, prestigious colleges if they intend to teach school, become a minister or go into public service.)

* Students (and their parents) should avoid all consumer debt, especially credit card debt, in order to avoid being crushed by their entire debt load.

* Students should be willing to work part-time during college in order to keep student loans to a minimum.

These choices may not be what your student had in mind when they envisioned going to college.  However, when your child graduates and sees their friends making student loan payments of $400 - $600 (or more), while you and your child are paying little or nothing, your entire family will be grateful that you followed these suggestions.

In addition, the Baby Boomer parents who encourage their children to follow these recommendations are much more likely to have a happy, comfortable retirement without carrying the burden of student loans for the remainder of their lives!

If you are interested in additional information about retirement financial planning, where to retire, 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 helpful articles.

You may also be interest in reading:

Healing Relationships with Your Adult Children
Retiring Former Hippies Spark a New Generation Gap
Do You Need a Million Dollars to Retire?
Retirement Income from Annuities or Investment Income

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

Photo: morguefile.com

Where to Keep a Will

You've done the right thing and created a will so your family will know how you want your estate handled upon your death.  You've spent hours making sure every detail is covered.  Now, you need to decide where to keep your will so that the executor of your estate can find it easily after your death.  One thing is certain; you do not want to file a will in the same easily accessible drawer or box where you keep old tax returns and bank statements.  When experts at LegalZoom.com tell their clients how to store a will, they want to make certain you understand the advantages and disadvantages of all the various choices.

Where Should I Keep My Will?

Below is a list of places where you might want to keep your will, along with some things to consider before you make a final decision.  All of these choices have advantages.  Once you make a decision, you will want to be sure to let the executor of your state know where to find both your will and other important documents ... such as insurance policies, receipt for a burial plot, list of people you want contacted upon your death, etc. 

Where are some of the places where you can keep your will and other documents are:

Keep Your Will in a Safe Deposit Box at a Bank

A safe deposit box is the first choice for many people.  Your will will be safe from fires, floods, theft and similar catastrophes.  However, depending on the state where you live, your executor may need a court order to get the bank to open the safe deposit box so the executor can look for the will.  If you decide to keep your will in a safe deposit box, let your executor and beneficiaries know where your safe deposit box is located, and give the executor the legal authority to take possession of the will after your death.

Store Your Will with Your Attorney

If you have no plans to change your attorney, you may want to simply leave the original copy of your will at your attorney's office.  They will charge little or nothing to store it for you.  Once again, you need to make sure your executor and heirs know the name of your attorney and how to get in touch with him.

As for other documents you want your executor to have, such as your insurance policies and list of contacts, you can give them copies at the time you name them the executor.  This way, they will quickly be able to have access to all the information they need.

Keep Your Will in Your Home Safe

Another option is to store your will in a heavy, waterproof and fireproof safe in your home.  You want the safe to be heavy enough that you are unlikely to have thieves easily remove the entire safe from your home.  As mentioned before, you do not want to simply file the original will in a home filing cabinet or in a plastic bag in the freezer.  In either case it would be far too easy for it to be stolen or altered without your knowledge.  If you do keep your will in a home safe, be sure your executor knows where the safe is located, and how to get into it.

File a Will with the County Clerk

In some parts of the country, you can file your will with the local county clerk's office.  This is a good solution if you have no plans to move out of the area, and if you make sure everyone knows that they need to contact the county clerk's office when you are gone.

If you make this choice, you will want to be sure to give other documents directly to your executor when you decide who that person will be.  Another option is to put these items in safe storage at your home, and let your executor know where to find them.

Whatever decision you make about where to keep your will, you will want to be certain that both your executor and your heirs have been informed.  They will need the original will in order to efficiently handle the disposition of your estate.  The simpler you can keep things for them, the less confusion there will be after your death.

If you are interested in additional information about funeral planning, financial planning, medical issues that can arise in your later years, where to retire, travel and changing family relationships, use the tabs or pull down menu at the top of the page to find links to hundreds of helpful articles for retirees.

You may also be interested in reading these blog posts:

Healing Relationships with Your Adult Children
How to Cope with Death and Grief
How to Publish Your Autobiography for Free
Life Alert Bracelets for Peace of Mind

You are reading from the blog:  http://www.baby-boomer-retirement.com
Photo of files courtesdy of morguefile.com

How to Prevent Bone Loss from Osteoporosis

One of the biggest dangers to our health that we face as we age is bone loss due to osteoporosis.  This skeletal disease was once referred to as brittle bone disease, which seems like an apt description. 

The mother of a friend of mine in college left a lasting impression on me because of the way her brittle bones virtually destroyed her life.  She was an active woman who had played tennis and gardened when she was younger, until she fell and broke her leg one day.  When she tried to get around with the use of crutches, several of her ribs cracked.  Afterwards, she was confined to a wheelchair.  I never saw this friend, or his mother, after I graduated from college in 1970, so I don't know if she was able to survive this debilitating skeletal disease.  However, I remember how frail she seemed the last time I saw her.  She was only in her 50's!

Modern Treatments for Osteoporosis Help Protect Our Bones

Today, doctors have a much better understanding of osteoporosis and its causes.  Although there are no real cures, they now have better ideas about how to prevent osteoporosis, as well as several methods for treating the condition.  In order to diagnose osteoporosis, your doctor will probably order a bone density test at age 65 if you are a woman, or at age 70 if you are a man.  Left untreated, a person can easily end up with a fracture of the hip or spine.  Spinal fractures frequently lead to premature death; hip fractures often mean the person is no longer able to live independently.  Learning more about prevention and treatment is important to anyone who hopes to have a long, healthy and independent life after retirement.

How to Prevent Osteoporosis

There are four steps we must all take if we plan to prevent bone loss.  According to RealAge.com, these steps are:

* Continue to engage in daily weight-bearing exercises, such as walking, running, dancing and tennis;
* Maintain you core muscle strength, especially your abs, as a way to keep your balance;
* Consume 1,200 mg. of calcium in foods such as milk, yogurt, broccoli, plus a small amount in a supplement;
* Get Vitamin D by spending 20 minutes a day in the sun without sunscreen, consuming foods such as salmon and sardines, or taking a supplement containing 600 - 800 IUs of Vitamin D a day.

Risk Factors for Osteoporosis

There are several risk factors that makes you more likely to develop osteoporosis.  Some of these are:

Low body weight, especially if you weigh less that 127 pounds;
Beginning menopause prior to age 47;
Diabetes;
Certain medications, such as antidepressants, corticosteroids and proton pump inhibitors, anti-seizure medications and some cancer treatments

Osteoporosis Guidelines for Treatment

If your physician determines that you need to be treated for Osteoporosis, they have several options.

First, try lifestyle changes such as the ones listed above.  You can improve your bone density when you make changes early.  If lifestyle changes are not enough, your doctor may recommend one of these types of medications:

Bisphosphonates to slow down how fast the bone is broken down.  These medications can be taken as tablets, a nasal spray or as a quarterly or annual injection.  Tablets can upset your stomach.

Teriparatide increases the bone-building cells by using a hormone to encourage new bone growth.  It is taken as an injection under the skin.  Long-term effects are unknown, so it is usually only used for two years.

Raloxifene is a selective estrogen-receptor modulator which acts like estrogen to slow bone loss.  It can cause hot flashes and an increased risk of stroke.

Estrogen therapy is also used, although it has been associated with an increased risk of breast cancer, heart disease and endometrial cancer.

Obviously, before opting for one of the treatments, your first choice should be lifestyle changes that will prevent the disease.  The earlier you begin these lifestyle changes, the longer you can postpone or prevent developing osteoporosis.

If you are interested in learning more about health issues that can affect you after retirement, financial planning, where to retire, or changing family relationships, use the tabs or pull down menu at the top of the page to find links to hundreds of helpful, informative articles.

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

Phone of knee joint courtesy of morguefile.com

Live in Ecuador Comfortably on Social Security

For anyone looking for a beautiful, tranquil and cheap place to retire, Ecuador should be at the top of your list.  According to InternationalLiving.com, Ecuador has been at the top of their Global Retirement Index for the past three years in a row.  Here are some of the reasons why:

Affordable Retirement in Ecuador

Americans moving to another country want to be certain that they can afford to live there comfortably, especially if their primary source of income is their Social Security.  In the colonial city of Cuenca, a furnished two-bedroom apartment rents for about $300 a month, and you can buy a condo for approximately $75,000.  A three-bedroom waterfront condo can be rented for $900 a month, if you take out a multi-year lease which will also keep your expenses steady.  Long term leases are a good alternative to buying.  According to International Living, you can live very well in Ecuador for less than $2500 a month, sometimes much less.

The official currency in Ecuador is the U.S. dollar, which makes it very easy to know exactly what you are spending for everything.  A number of banks will accept direct deposits of your Social Security check and there are ATMs almost everywhere.

Another community that is appealing to relocating Americans is Bahia de Carquez on the coast of Ecuador.  Like Cuenca, it has medical facilities, restaurants and groups of other expatriots who get together regularly.

Some things, such as furniture and American style clothing, can be more expensive in Ecuador.  However, if you buy your clothing during visits back to the United States, and you rent a furnished apartment, these expenses should not be too serious a problem.

You will also find that the grocery stores are well-stocked and carry nearly everything you are accustomed to buying in the United States, although not all brand names will be available.

Medical Care in Ecuador

One concern many Americans have when they move to another country is the medical care.  This past January, a couple I know was traveling in Ecuador, when the wife suddenly collapsed in her hotel room as the result of a brain aneurysm.  This could have been fatal, even if it had happened in her home in the United States.  However, she was taken to a hospital in Ecuador where she had a world-class brain surgeon repair the aneurysm, using the latest techniques.  She is back home in the United States, and her neurologist here has expressed his amazement at the quality of the repair.  If you met her today, you would have no idea that this happened to her only six months ago.

In addition to the modern medical facilities in Ecuador, healthcare is quite affordable.  You can buy inexpensive health insurance there, even if you are over age 65.  A retired couple can get health insurance for less than $100 a month from Nova Ecuador, the national insurer.  In addition, a trip to a doctor only costs about $25 - $35 without insurance.

Beauty and Climate

Of course, no matter how cheap a place is, or how wonderful the medical care is, you would not want to move there if it wasn't a lovely, pleasant place to live.  Ecuador has a diverse terrain, ranging from charming beach towns to spectacular mountain villages.  The weather is very temperate.  In Cuenca, the average daily high temperature is in the 70's, with cool evenings.  Some people consider the Ecuadorian climate to be the best in the world.

New Friendships

According to the U.S. State Department, approximately 1.5 million American retirees are living in other countries.  In addition to the opportunity for fun and adventure in another country, many people enjoy the tight-knit groups of friends they find in many foreign countries.   There are currently approximately 5,000 to 10,000 American expatriots living in Ecuador, with the numbers growing every year.

Use Caution When Moving to a New Country

Just because you are living in another country, you should not drop your natural sense of caution.  Even in Ecuador there are thieves, as well as white collar criminals.  Don't be too trusting until you have had time to get to know what you are doing there.  Learning Spanish will help you speak with the local people, although many do speak English.  Contact a local attorney before you move to Ecuador, in order to begin the process of establishing residency once you are there.

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

Some of the other articles that may interest you are:

Retiring in Luxury to Hua Hin, Thailand
Americans Retiring in Panama
Best Places to Retire Outside the US
Cheap Places to Retire (in the US)
The Best Sunny Places to Retire (in the US)
Finding Niche Retirement Communities (in the US)

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

Photo of Ecuadorian Market courtesy of morguefile.com

Sources:

http://articles.chicagotribune.com/2011-10-11/travel/sc-trav-1011-retire-abroad-20111011_1_ecuador-health-care-cuenca

http://www.reuters.com/article/2012/03/08/us-personalfinance-retire-expats-idUSBRE8270UO20120308

Retiring in Luxury to Hua Hin, Thailand

As part of our ongoing series of great places to retire on Social Security, many Americans have discovered the famous beach resort community of Hua Hin, Thailand.  Out of a population of approximately 85,000, about 10 percent of the residents are ex-patriots from other countries.

This lovely beachside city is the site of the Wang Klai Kan Won Palace, now used as the full-time residence of the King of Thailand.  It has a tropical climate, with pleasant temperatures that average from 76 to 89 degrees Fahrenheit.  The occasional rainfall amounts to about 39 inches a year.

What to Do in Hua Hin

This small city has good transportation, with its own domestic airport and modern rail service that can easily link residents to the major international airports in Bangkok and Suvarmabhumi.  The beach extends for five kilometers and is considered beautiful and clean.  Among the popular activities in the area are the beaches for snorkeling and swimming, golf courses, fishing, eco-cruising, spas, waterfalls, elephant camping, kite-boarding, national parks and a wide variety of restaurants and shops.  There is a nightly street market where visitors can enjoy shopping and dining on local seafood that is prepared on the spot. 



There are also fun karaoke bars, discotheques, and beer bars scattered throughout the city, especially near the seaside hotels.  Festivals are an important part of life in Hua Hin.  Among the annual events retirees can enjoy are the International Kite Festival, the Hua Hin Jazz Festival, and the Jua Hin Vintage Car Rally.  Residents and tourists can also enjoy modern shops, as well as restaurants and clubs at the local hotels.  A photo of the Market Village is shown shown here.


Health Facilities in Hua Hin

Hua Hin has several modern medical facilities, including the San Paulo Hospital, Hua Hin Red Cross, Bangkok International Hospital, and Hua Hin International Polyclinic.  The Dr. Pairat Eye Clinic is also located there.  Medical procedures in Thailand cost from 20 to 80 percent less than the same procedures in the U.S., and many people believe that the care you will receive is even better.

Living in Hua Hin, Thailand

American residents to this area will discover that English is widely used, and they can enjoy a high standard of living on a modest budget.  According to a  U.S. News article entitled "The Ideal Retirement Haven You've Never Heard of," a couple could live comfortably here for $1,100 a month.  Since most American retirees actually earn significantly more than this from their Social Security alone, this can be a very appealing location to consider.  Sample prices:

2 bedroom furnished ocean view apartment: $1000 - $1200 month
2 bedroom furnished home away from beach: $600 - $900 month
Full time housekeeper:  $300 month
Two-hour massage:  $20 - $35

For retirees wanting to take college classes, Webster University, which is the only international American accredited University in Thailand, has its main campus in the area.

Looking for more retirement ideas?  Use the tabs or the pull down menu at the top of this page to find links to hundreds of other helpful articles on where to retire in the United States or abroad, financial planning, medical issues, and changing family relationships.

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

You may also be interested in some of these other blog posts:

Americans Retiring in Panama
Best Places to Retire Outside the US
Cheap Places to Retire (in the US)
The Best Sunny Places to Retire (in the US)
Finding Niche Retirement Communities (in the US)

Sources:

http://en.wikipedia.org/wiki/Hua_Hin_District
http://finance.yahoo.com/news/ideal-retirement-haven-youve-never-162657501.html

Crimes Against the Elderly

Many Baby Boomers are moving into retirement communities while they still have living parents who also live in a retirement community or an assisted living facility.  Unfortunately, with so many people over the age of 55 living in these neighborhoods, they have begun to attract the attention of criminals who are looking for easy victims.  As a result, Baby Boomers not only have to worry about keeping themselves safe from these predators, but many of us also have to worry about our parents, who can often be more trusting and less suspicious than their Baby Boomer children.

Crime Statistics Involving Elderly

According to the Project America website, for every 1000 people age 65 and over, here are the annual crime statistics:

Simple assault: 1.5
Personal theft:    .8
Robbery:           .6
Aggravated assault:  .3
Rape or sexual assault: .1

Overall, about 2.5 out of every 1000 people age 65 and over will be the victim of a crime every year.  Obviously, the longer you live, the greater your chances of being victimized.

Financial Crimes Against the Elderly

According to the same Project America article, the Department of Justice is especially concerned about financial crimes against the elderly.  In 1998, about one-third of the elder abuse cases that were discovered included financial exploitation, and the statistics have remained similar since that time.  This can include relatives that steal money from senior citizens, financial advisers who are dishonest, and strangers who trick retirees into paying bills they do not owe or donate to charities that do not exist.

Telemarketing Fraud Against the Elderly 

In addition, the elderly have reported about $40 billion in losses as a result of telemarketing fraud, and this problem is growing yearly.

On my Lies and Liers blog, I wrote a post about a phone call I received.  The post is titled "Lies and Liars: Computer Virus Scams," and the incident so infuriated my husband that he reported it to the Federal Internet Crime Complaint Center at http://complaint.ic3.gov/.  This government agency shares this information with other law enforcement agencies, both local and national.  I highly recommend that anyone who experiences a similar phone call report it to the Federal Internet Crime Complaint Center.  While you are unlikely to get reimbursed for any losses, this site is the first step in trying to end these types of crimes.

These phone calls take many forms.  In the case I wrote about, a stranger called and tried to trick me into letting him take control of my computer so he could show me that I had a "computer virus" on it.  When people have fallen for this scam in the past, the caller has loaded a virus onto their computer and then sold the victims anti-virus software.

Other Hoaxes Directed at Senior Citizens

One of the disadvantages of living in a retirement community is that we receive so many fraudulent calls.  The issue has become serious enough that we have begun screening most of the phone calls we receive at our home.  If we do not recognize a name or phone number for an incoming call, we let our answering machine pick up the call.  Then we decide if we want to return it.

Many seniors continue to be tricked into giving strangers their Social Security number and other identifying information because they are being told it is necessary in order to receive government assistance to pay a portion of their utility bills or other obligations.  This is another complete fraud, often targeting the elderly.

Crimes that Pull At Your Heart Strings

Some of the worst crimes are those that rely on your charitable nature or desire to help others.  One of the most horrifying one is "The Crying Teenager Hoax."  In this hoax, a crying teen calls, pretending to be your grandchild or other relative.  They ask you to wire them money in another state because they have been in a car accident or arrested.  Thousands of seniors have sent wire transfers to strangers, believing they were helping a young relative.  Sometimes it is days before they realize they have been cheated.

Other Types of Crimes Against the Elderly

It is a shame that we need to remain constantly vigilant.  However, as a resident of an over-55 community, I realize that I have received more fraudulent phone calls since I moved here than at any other place I have ever lived.  In addition, a member of our Homeowner's Association Board of Directors told me this morning that many of the elderly in our community have been robbed by their home healthcare workers and other people who are supposed to be "helping" them.  This is especially shocking, because we live in a community that is considered one of the safest in California!

No matter how old we live to be, or how safe we deem our community, we are never too old to be the victim of a crime.  We can never let our guard down ... for ourselves, our parents, our friends or our neighbors.

If you are interested in learning more about retirement planning, financial issues, where to retire, medical concerns and changing family relationships, 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 courtesy of morguefile.com/

The Bankrate List of WORST States for Retirement

In 2012, I ran across an interesting news story from Bankrate, Inc., entitled "10 Worst States to Live in During Retirement."  Their list included a large part of the southern United States.  Of course, this is in direct conflict with many of my other posts in this blog in which I published lists of wonderful places to retire that had been created by CNN Money, Kiplinger Magazine, and AARP.  All of their lists had promoted many of the southern states as affordable, sunny places to retire.

Is the South Really a Bad Region for Retirement?

The Bankrate article peaked my interest because, like most of you, I wanted to know their criteria.  Why were these states suddenly considered undesirable?  Bankrate based their information on statewide statistics for short life expectancies, high crime rates, and high poverty levels. As I thought about these statewide statistics, I realized that their criteria might not have much affect on many of the people who choose to retire in the South.  Here are my thoughts:

First, your personal life expectancy is determined by your health, your heredity and your lifestyle.  The statewide average life expectancy will not have much affect on you, especially after you have already reached the age of 60 or older. 

Second, no one wants to live in a state with a high crime rate.  However, not every town in these states has an abnormally high crime rate.  In addition, if you live in an over-55 community or an assisted living facility, your home or apartment is likely to have a very low crime rate.

Third, one reason many of these states are attractive to retirees is because they often have a low cost of living.  While a large number of retirees who live in these states may have incomes below the poverty line, the amount of Social Security you receive is not based on the state where you live.  You are likely to live on Social Security much more comfortably in an affordable state like Louisiana or Georgia than an expensive state like New York or California.  In fact, the low cost of living in these states may be the very reason why so many low income retirees have chosen to live in them, and the reason why there are so many retirees in these states with incomes below the poverty line!

Keeping these thoughts in mind, here is the Bankrate list:

Bankrate List of States With High Crime, High Poverty and Low Life Expectancy

(Life expectancies are listed after each state)

Louisiana - 75.4
Georgia - 77.1
New Mexico - 78.2
Texas - 78.3
Arkansas - 76.1
Tennessee - 76.2
South Carolina - 76.6
Mississippi - 74.8
Alabama - 75.2
Kentucky - 76.2

The crime rates in these states ranged from 2,794 (Kentucky) to 4,498 (South Carolina) per 100,000 residents.

The percent of retirees living in poverty in these states ranged from 9.7% (Tennessee) to 12% (New Mexico).

How Can Texas Be Considered a Bad State for Retirement?

In looking over the statistics for the various states, I particularly objected to Bankrate's inclusion of Texas on their list.  After all, the life expectancy in Texas was 78.3 (the highest on their list),  The state crime rate of 4,233 per 100,000 residents was high, but it is not that high everywhere in the state.  Many small Texas towns and suburbs have a low crime rate.  The poverty rate of  retirees at 10.7% might only reflect that many low income retirees find it a desirable place to live.  Texas has shown up over and over again on the lists of other organizations as a great place to retire.

These statistics show that we have to evaluate everything we read carefully.  Making decisions about retirement is confusing enough, without having to wade through conflicting opinions!

If you are interested in more ideas about where to retire in the U.S. and abroad, financial issues, medical concerns and changing family relationships, use the tabs or pull down menu at the top of the page to find links to hundreds of helpful articles.

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

Photo courtesy of morguefile.com

Online Dating Scams and Benefits

Are you lonely and hope to find someone to spend time with ... perhaps even marry?  Many senior citizens have turned to online dating sites, and there is nothing wrong with that.  You will see these sites advertised on Yahoo, along the sidebar of this blog and in other reputable locations.

However, if you do decide to sign up for a dating site, there are a few common sense precautions you should take.  Below is some information to help you enjoy these sites, while protecting yourself ... and your savings account.

What You Should Know About Online Dating

I have actually covered the topic of online dating scams in detail in another blog which I write.  You can read that detailed article here:

Lies and Liars: Online Dating Scams


As you will discover in the above article, while many people are nice on these sites, there are a few scammers that you could encounter, and they are looking for vulnerable people to become their next online dating victims.  The scammers put together new, imaginary identities for themselves, and create a wonderful back story.  They depict themselves as being caring, thoughtful, loving, fun, well-traveled and interested in a wide variety of sports and hobbies.  They may use stolen pictures of attractive middle-aged people.  Sometimes they pose as men or women with successful professional careers.  Who wouldn't want to date someone like them?  They sound great, but they are really scammers who are simply trolling for their next victim.  You do not have to be a victim of this small group of scammers, however!

How To Protect Yourself From Online Dating Scams

Although you will find more details in the article I mentioned above, below are the basics that everyone should know.  While these actions will not guarantee that you will not be scammed, they can dramatically reduce the chances.

*  Go slow in forming relationships with someone on an online dating site.
*  Use paid dating sites; the people on them have to use credit cards and real identities.
*  Give preference to sites that do criminal background checks.
*  Do not give out personal information for a long time ... where you work, live, etc.
*  Speak with them on the phone or by Skype before meeting them.
*  Meet at a neutral location several times before meeting them privately.
*  Avoid long-distance relationships ... they may not live where they say.
*  Become very suspicious if they begin to need money for a sick relative, a business problem or in order to buy tickets to visit you.
*  Google the person's name and check them out on RomanceScams.org or PigBusters.net to see if there are complaints about this person scamming someone else.

Advantages of Online Dating Sites

While there are some risks involved with dating sites, they can also be a wholesome, positive way to meet someone.  Thousands of couples have met and gotten married after getting to know each other through online dating.  There are good people on these sites.

Many of the Baby Boomers I know are divorced or widowed, and they are hoping to meet someone new.  They no longer hang out in bars, and their circle of friends may not be as wide as it was in their younger days.  Often the clubs and organizations they do join are made up primarily of members of their own sex.  As a result, they aren't sure how to meet members of the opposite sex and form new romantic bonds.  They may want to date, but just not know how to meet other eligible people near their own age.  This is why an online dating site can be a pleasant way to meet someone you might want to date.

Fortunately, the majority of the people on these sites are nice, honest, respectable people like yourself.  Many of them really are attractive, considerate and fun-loving people.  Just take your time and follow the recommendations above and you are much more likely to have a positive online dating experience.  Don't rush into anything and, if you have any doubts, discuss them with your friends.  They can help you make sure you are thinking clearly and not putting yourself at risk.  In fact, there is nothing wrong with bringing along a friend the first few times you meet a stranger.  You'll be much more comfortable ... and safer!

To stay up-to-date on all the latest scams, swindles and hoaxes, you are invited to follow my Lies and Liars blog, as well as this one.

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

Graphic of heart courtesy of morguefile.com/

Retirement Income from Annuities vs Investment Income

As you approach retirement, one tough decision that people need to make is how they should invest the money they have saved for retirement.  Far too many people run through this money during the first few years after they quit working.  This can often be an especially big problem for those retirees who take early retirement.  Many of them do not have a plan to make sure their money lasts the rest of their lives.  Before you start spending your retirement savings, here are some points to consider.

Investment Income for Retirement

Financial planners recommend that you do not take more than 4% per year from your retirement savings, in order to be sure that your savings will last the rest of your life.  If you have saved $50,000 in your IRA, 401K and other accounts, this means you can start taking out $2,000 a year.  In this way, the principal will last 25 years, plus you will have your accumulated interest to draw on.  If you retire at age 65, the money will last the majority of people all of their lives.  With interest rates so low, however, some financial planners have reduced the percentage to 3% a year, if retirees want to be absolutely sure their money will last.  Three percent translates to about $1500 a year on $50,000 in savings.  This is a fixed amount which you cannot increase, even if you experience financial problems as a result of inflation.

Another approach to handling your retirement savings is to re-evaluate every few years how much you can remove.  In other words, start out taking only $1000 a year for the first five years.  Then, gradually increase the amount as you age.  To figure out how much you can take in later years, subtract your age from 100.  Then, divide your remaining savings by that number.  If you never take out more than that amount, your money should last the rest of your life (assuming you do not live past 100).  For example, if you are 75, and you still have $38,000 left in savings, divide that $38,000 by 25.  This comes to $1520 a year that you can remove from savings.  When you reach 80 and have about $33,000, divide that amount by 20 and you can start taking $1650 a year from savings.  This allows you to benefit from increases to your principle from the interest you have received, and helps protect you against inflation.

A third approach is to simply invest your money in the highest dividend paying stocks, Treasury bills, or bank C.D.'s you can find and simply use whatever interest you get, without ever touching your principle.  However, if you choose a bad stock or interest rates dip (as they have over the past few years), you could end up with very little income.  On the other hand, you maintain control of your principle, and you can pass it on to your heirs.

A lot will depend on how much money you have saved and how much you need to live on.  If your current expenses are so high that you are tempted to use more than 4% of your savings in one year, it is very important that you downsize immediately or you will go through your savings much too rapidly.

Annuities to Supplement Your Retirement Income

Annuities are an entirely different way to handle your retirement savings.  You turn your savings over to an annuity company and they pay you a fixed income for the rest of your life.  In most annuities, the monthly amount is locked in.  The amount you are paid is designed to pay you interest and use up your principle.  There are different types of annuities.  One popular example is the New York Life Insurance annuity that is promoted by AARP.  With this annuity, if you do not collect long enough to at least earn back your original investment, the difference will be paid to your chosen beneficiary.  Here are some sample payouts (in 2012) based on the age you are when you make the original investment:

Age 65 -- 5.8%
Age 75 -- 6.9%
Age 85 -- 8.1%

Based on these figures, if a 65 year old invested that same $50,000 in an AARP / New York Life annuity, they would immediately begin receiving $2900 a year in income.  That is far more than the $1000 to $2000 a year they would pay themselves if they decided to manage and draw on their own savings.  However, the amount never goes up.  Another disadvantage is that you can only pass the money on to a beneficiary if you have received less than $50,000 in payments by the time you die.  In other words, if you started receiving the annuity at age 65 and died at age 82, there would be nothing left to pass to an heir.  Many people who collect an annuity feel that they should save a portion of the income they receive in the early years, to help with rising expenses in later years.

This is not meant to be an endorsement of the AARP / New York Life annuity. There are other annuities from other companies that offer different options, and some of them may work better for your needs.  This was only meant as an example, so you can understand how annuities can help you handle your retirement income.

Annuities vs. Investment Income

There is no solution that is the correct one for every person.  A great deal depends on whether or not you hope to leave money to a beneficiary, and how successful you think you will be if you handle your own money rather than turn it over to someone else.  You also need to consider how much income you will need immediately upon retirement.  Many people actually use a combination of two or more of these plans.  Whatever you decide, it is good to have a full picture of the options available to you before you begin recklessly living off your savings during the first few years after retirement.

If you are interested in learning more about ideas for retirement income, financial planning, where to retire, medical issues for retirees, and changing family values, 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