Wednesday, December 3, 2014

Fun Ways to Earn Extra Retirement Income

Let's face it.  Most Baby Boomers are going to have to do something to earn extra income during their retirement years.  The vast majority of Boomers simply have not saved enough money to live comfortably during their later years.

We see the reality of this around us.  Several times recently I have been in Starbucks or fast-food restaurants and observed that many of the employees are not the young, college-age kids one would expect to see.  Instead, these part-time jobs are often filled by people who are obviously in their 60's or older.  The same is often true of department store clerks and people in other service industries. I can't help but wonder if they are really enjoying what they are doing.

Instead of working in stressful, demanding jobs after retirement, wouldn't it be nice to find something fun to do that could also provide us with an extra income?  Look around, there might be more opportunities than you realize.

Examples of Fun Jobs for Retirees:


Create something and sell it:  I have a friend named Patti who is a retired Realtor and a wonderful painter.  She spends hours painting a wide variety of ocean and mountain scenes and selling her work at Southern California art festivals where she has gotten to know other artists who are doing the same thing.  It is such fun for her!  When I have visited her booth at the festivals, I have frequently observed that she is surrounded by other men and women our age who are making and selling jewelry or lovely boxes and items they have created out of wood or other materials.  A few years ago I bought some earrings from a 60ish man at a fair in Kona, Hawaii.  He told me that his wife made the jewelry, while he went to the fairs and sold it.  You can even start your own website and sell the things you make online!

Start a New Career and Be Your Own Boss:  Another friend of mine retired after decades of working all day as a hair dresser.  She decided to become a Realtor.  She wanted to try something different and has been successful and happy in her new career.  She only sells retirement condominiums in the community where she lives and she has become an expert in that area.  She never has to drive very far, but she always seems to have several active listings and a few buyers.   She is now in her mid-70's, works her own hours and has complete control over her new career.  It has certainly rejuvenated her.  As you can see, a job that has become drudgery for one person can be a fresh new career for someone else.

Write About Your Hobbies:  Do you like to crochet, knit, quilt, make jewelry or other crafts?  Why not start a blog or website and share your knowledge and experience with others?  While you might not make a lot of money writing about hobbies, you could earn a small amount each year to spend on incidentals, travel or Christmas shopping.  Check out this website: Domestic Diva Online.  The author has turned her love of creating craft projects into a successful website where people can follow her detailed instructions and create adorable crafts of their own.

Write About Your Experiences:  Perhaps you don't feel that you have any hobbies to share.  What about some of your life experiences?  Many people have created blogs about their personal life experiences ... traveling to exotic locations, going on cruises or even more day-to-day experiences, such as interesting places to visit in your local community.  You may have fun experiences that you would enjoy sharing, too.  Whichever type of blog you decide to write, you need to learn how to monetize it by adding appropriate ads from companies like Amazon, Google, Chitika, or Vigilink.  You can also list your blog on Amazon Publishing for Blogs, since some readers will subscribe to your blog on their Kindle.  You'll earn a little here, a little there and, pretty soon, it will add up.

Find a Fun Job:  Perhaps you feel that your financial situation requires you to have a regular paycheck and not rely on the advertising fees from a blog or website.  There are a variety of fun jobs available that you might find very interesting and stimulating.  One of our friends retired as a stockbroker and went to work in a health food store.  He had always been interested in vitamins and nutrition.  Another man I know works in an antique store.  He has a houseful of antiques and, although he worked for a large corporation most of his life, he always loved collecting antiques.  Now he gets to work at a store he really loves and share his knowledge.

Teach: If you have knowledge and expertise in an area, and enjoy sharing that knowledge with others, you can earn money by teaching.  Many of the Emeritus teachers at our local community college are in their 60's and 70's ... and this includes the fitness teachers who lead classes in yoga, Tai Chi, chair aerobics, circuit training and much more.  If you know how to play the piano, guitar or any other musical instrument, teaching is a fun way to earn extra money.  

Tutor Children:  Are you an expert in algebra, geometry or calculus?  There is a huge need for people who are patient and can take the time to really explain this subject matter to teens.  If this describes you, check with your local high school to find out how you can get connected with teens who need your help.

Work with other Senior Citizens:  If you aren't interested in working with kids, go to your local senior center and ask about job opportunities for senior citizens.  You might be able to work as a receptionist at the senior center or for a local business.  There are hundreds of senior citizens, many much older than Baby Boomers, who are working in the area around our community ... in the hospital gift shop, as security people at the community gates, for our homeowner's association, and in many other capacities.  Some of these jobs are part-time and others are full time.

Postpone Retirement and Spend a Few Years in Public Service:  One of the women I walk with every weekend spent two and a half years in the Ukraine after she joined the Peace Corps at age 62.  She had retired from the corporate job that she had held for nearly 40 years, but she wanted to postpone collecting her Social Security or using any of the money in her 401(k).  She did this by working for the Peace Corps.  It was a fabulous experience for her and she still goes on speaking engagements where she is asked to talk about her time in the Ukraine.   If you are interested in doing something like that, check out Encore.org This website will help you find government and private public service jobs that are designed for Baby Boomers looking for encore or second careers.  Many of these jobs will be right in your own neighborhood, in case you are not interested in traveling halfway around the world.  What a fun, interesting and satisfying way to postpone your retirement and increase your retirement benefits! 

Even if your Social Security benefits are not very large and you have been unable to save a lot of money for retirement, that does not mean you have to face a poverty stricken retirement.  There are a variety of ways you can make extra money and many of them will be a lot of fun!

If you are currently planning your retirement, you will want to check out the tabs at the top of this article to find links to hundreds of other helpful articles.

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

Photo credit:  www.morguefile.com

Wednesday, November 26, 2014

Celebrating Thanksgiving Can Extend Your Life


As we approach the "Bermuda Triangle" of Thanksgiving, Christmas and New Year's Eve, many people approach this time of year full of fear, concern about unpleasantness, stress over financial demands, and worry about excess drinking.

However, if you approach the season with the right attitude and actions, you don't have to succumb to all this stress and worry.  Instead, you can turn this opportunity into a way to actually add years to your life.

How to Benefit from the Holidays

*  Research shows that people who have a large number of social connections tend to live longer.  Of course, if you have relatives who increase your stress, your best move is to minimize the time you spend with them and maximize the time you spend with the people you really enjoy.  While none of us can completely eliminate the time we spend with irritating people, we all have the right to pleasantly and politely avoid them as much as possible.  It is important that you do it politely, however.  Nothing can increase your stress like a family feud.  In other words, drop by the home of that busy-body aunt or alcoholic uncle for an hour or so.  Drop off a small gift or home-baked treat.  Smile a lot, make your excuses, and move on!  Don't try to change the the people who are a problem to you; instead, spend your energy increasing your social connections with the people who you care about.

*  Give what you can, but don't go into debt to do it.  Giving is as enjoyable as receiving for most people, and we would all like to give gifts to our family and friends when we can. Giving to others also seems to bolster our life expectancy.  However, there is no reason to go into debt in order to enjoy the pleasure of giving.  First, look around your home.  Do you own things that you don't want, but you think someone else would ... a pretty vase or souvenir from a trip?  Perhaps you have received a gift that just isn't right for you.  Re-gifting is perfectly appropriate, as long as you don't give it to the person who gave it to you!  Still need more gifts?  Head to the Dollar Store.  That is where you can pick up holiday coffee mugs, Christmas tree ornaments, small children's toys, bubble bath, hand cream, picture frames, vases and candy.  You can even buy cheap holiday cards and gift bags there.  For $20, you can purchase 15 or more gifts that will allow you to give something to everyone on your list.  It really is the thought that counts.  Baking cookies or making candy is also a wonderful way to give gifts that will delight your family and friends.  Want to do more?  The Tuesday after Black Friday and Cyber Monday is known as Giving Tuesday.  Make a donation to your favorite charity, even if it is just a couple of dollars.

*  Volunteer to help others.  Volunteers tend to live longer than those who don't.  Whether you have an on-going commitment at your house of worship or a local children's hospital, or you just show up when you can to help at a food bank or soup kitchen, volunteering will make you feel good about yourself.

*  Finally, let the holidays lift your spirits.  Rather that getting down on yourself about the things you cannot do, allow yourself to feel grateful and appreciative for the good things you do have in your life.  Let the holidays lift your spirits.  Sing your favorite holiday songs.  Drive around and look at the holiday lights.  Invite friends over for a sweet treat or a glass of wine.  People who are optimistic and happy tend to live longer, too.

May this be your best holiday season ever!

Use the tabs at the top of this blog to find other ways to maintain your health and increase your longevity.  The tab on Medical Concerns contains links to dozens of other helpful health articles.

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

Photo credit:  www.morguefile.com

Wednesday, November 19, 2014

Long-Term Care Insurance -- Should You Buy It?

It may be hard to imagine today, but the time may come when you will have difficulty bathing yourself, getting dressed, preparing meals, eating, moving from the bed to a wheelchair or walker, using the bathroom, remembering to take your medication, or with incontinence.  This situation may come on slowly as we age, or it could happen suddenly as the result of a stroke or accident.  No matter the cause, it is important that you have a plan for dealing with these issues when the time comes.

Cost of Getting Long-Term Care

If you have not properly prepared, obtaining the care you need can be extremely expensive.  Although the exact amount varies across the nation, the Orange County Council on Aging estimates that it can range from $50,000 to $80,000. 

The least expensive type of care is when a family member provides the care you need.  However, this is not always a possibility.  Personally, I know of several widowed, childless men and women.  They have no near relatives who can care for them if they should become incapacitated.

Another option is to apply for MediCal.  This is a government program that covers long-term care expenses for many people.  A company called Nursing Home Solutions provides professional financial planners who can help you see if you qualify for MediCal.  In their ads they say that you do not have to spend down all your assets in order to qualify for MediCal assistance in paying for a nursing home. I am sure there are also other companies that can help you apply for this program.  You can contact Nursing Home Solutions at http://www.nhscare.com/.

The next least expensive type of care is the use of a part-time caregiver in your own home.  The cost becomes more expensive if you need full time care in a nursing home or assisted living facility.

The most expensive care is for those people who choose to have 24-hour caregivers in their own home, since this requires three shifts of caregivers, seven days a week.

What Does Long-Term Care Insurance Cover?

Fortunately, there is a type of insurance that will pay for your care when you are no longer able to take care of yourself.   In California, where I live, these insurance policies must include coverage for in-home caregivers, as well as the cost of residing in an assisted living facility or a nursing home.  This gives you the option to receive your care in the setting that is most appropriate for you and your family.  For example, if your spouse needs long-term care, having this insurance may make it possible for them to stay in your home with you, without forcing you to put them in a nursing home.

Purchasing Long-Term Care Insurance

This type of insurance gives you a variety of options, so different people can choose the amount of insurance they can afford.  You can select a policy that covers your care for a few years, or you can choose one that would cover you for as long as necessary, even if that is the rest of your life.   The shorter the term of care, the lower the premiums will be.

Why Would You Buy a Short Term Policy?

You may be wondering why everyone wouldn't just buy a policy that would cover them indefinitely, rather than have a time limit on it.  Of course, that would be ideal, but it could be too expensive for many people.  When my husband and I purchased our policies, we bought a long-term policy for me, and one that would last a maximum of 4 years for my husband.

Our insurance agent said that you have to look at things practically.  I am more likely to outlive my husband.  If he were to become debilitated, I would probably care for him by myself as long as possible before bringing in a caregiver.  Once we reached that point, four years of long-term care would probably be adequate.

On the other other hand, when I am elderly and losing my ability to care for myself, I probably would not have a spouse to take care of me.  I would need to hire a caregiver sooner and would most likely need the care for the rest of my life.

Based on our conversations with our insurance broker, we purchased the policies that seemed to be affordable and would meet our projected needs the best.  The right policy for you will vary depending on your personal circumstances, such as whether you are single or married, whether or not you have adult children who are capable of providing the care you might need, the health and life expectancy of you and your spouse, and how much insurance you can afford.  Even a short-term policy is better than no long-term care insurance at all.

Whatever you decide, you want to make sure you select a policy that you can afford now, as well as in the future.

What If You Do Not Qualify for Long-Term Care Insurance?

The younger you are when you buy the policy, the better off you will be.  It will be less expensive in your 50's or early 60's and you are more likely to qualify for it.  However, if you do wait until you have a chronic condition and you have trouble qualifying, there are alternatives.  If you or your spouse is a Veteran, you may qualify for $2000 a month in long-term care aid from the Veteran's Administration.  There are also special life insurance policies that include long-term care riders.  You can talk to your insurance agent about those choices.  You may also be able to qualify for MediCal.

Whatever you decide, you need to give this issue some thought and let your loved ones know about any policies you own or money that has been set aside for your long-term care.  You do not want to wait until you are injured and cannot speak for yourself.

If you are retired or planning to retire soon, you will find links to more information about long-term care in the Medical Concerns tab at the top of this page.  You may also be interested in the article links you will find under the other tabs, which cover issues such as financial planning, where to retire, and family isues.

Source:

http://www.nhscare.com/

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

Photo credit:  www.morguefile.com

Wednesday, November 12, 2014

Avoid International Problems When Retiring Overseas

Tens of thousands of Americans have chosen to move to other countries in retirement and most have had pleasant experiences, often living happily in gorgeous tropical or European locations.  The people who have had the most success are those who took the time to do thorough research and careful financial planning.

Recently I wrote a post called "Investigate Exchange Rates Before Moving Overseas."  However, the currency exchange rates are not the only issues that could affect your pocketbook if you decide to move to another country.  While most potential problems can be avoided or dealt with, it is important that you take the necessary steps to be assured that everything goes as smoothly as possible.

Factors To Consider Before Moving to Another Country

Have a realistic idea of the cost of living - While it might be possible to live very cheaply in another country, will you be living in a lifestyle that is comfortable for you?  One young couple we know who moved to Costa Rica recently spent $300,000 for a new, modern home in a gated community.  While they could live cheaper in other areas, they preferred the safety and modern amenities that were available in this neighborhood.  You need to ask yourself ... will I really be reducing my cost of living?  In addition, you need to factor in extra expenses, such as the cost of travel back and forth to visit family in the United States.

Make arrangements to receive your Social Security checks in your new country - Approximately 400,000 U.S. retirees currently get their checks abroad.  You can find out how to do this and whether or not the checks can be sent to your new country at SSA.gov/foreign.  Once in your new country, the U.S. embassy or consulate can assist you if you have any problems.

Investigate the health care system and medical insurance in your new country - Will you have access to the specialists you need at a price you can afford?  Since you cannot use Medicare in other countries, can you buy into the national healthcare system in your new country or purchase private insurance?  Should you keep basic Medicare available for when you travel back to the U.S.?  Many people do, especially if they make frequent return trips or only live overseas for a portion of the year.

Another option is to selection a Medicare Advantage plan that will provide at least emergency coverage in foreign countries.  It is reassuring to know that part of your medical bills will be covered if you have a stroke or heart attack in your new country.

You are required to continue to file U.S. tax returns - If you have any assets in the U.S., or at least $10,000 in a foreign account, or any income coming from the U.S., or you are earning foreign income, you are required to file tax returns, even if you don't owe any taxes.  Failure to file the proper forms can result in a $10,000 fine and you can be arrested upon your return for felony tax evasion.  Make sure you cut all ties with the state where you have lived, too, or you could be expected to file state tax returns.  You may also have to file a tax return in your new country.  You need to check with an accountant in the country where you will be living to learn exactly what tax laws could affect you.

* If you plan to work in your new country, make sure you know the requirements - Will you be allowed to work?  Remember, you will also have to report any money you earn to the U.S. government as well as to the government of the country where you now live.

Set up a bank account in your new country - However, you may want to keep most of your assets in a U.S. bank where they will be less affected by currency fluctuations.

Consult an attorney before buying property in a foreign country - Some countries allow you to purchase property, while others do not.  In addition, a local attorney could help you avoid a real estate scam or other problems.

Have a local attorney look over your will, trust, power of attorney, etc. - Make sure your wishes will be honored in your new country and that your documents comply with their laws.

Register with the U.S. State Department's Smart Traveler Enrollment Program - This is important so the government can find you in an emergency.

In addition, some people I know who have owned homes overseas have told me that they enjoyed it most when they only spent part of the year there or only stayed for a few years.  In this way, they were able to still spend time with family and loved ones in the United States and not feel so isolated. 

In the end, the choice of whether to retire overseas or stay in the U.S. is up to each individual.  Whatever you decide, just make sure you have prepared carefully for everything you can and realize that some problems ... such as erupting volcanoes, hurricanes, earthquakes, floods, debilitating illnesses and other emergencies ... are things you will just have to deal with as they come.  After all, that's part of the adventure, isn't it?

If you are planning your retirement, you will also want to check out the tabs at the top of this article for links to hundreds of posts on a wide variety of retirement topics.

Sources and Reference Materials to Help You:

http://ssa.gov/foreign

http://travel.state.gov/content/passports/english/country.html

"Tax Guide for U.S. Citizens and Resident Aliens Abroad" at IRS.gov/pub/irs-pdf/p54.pdf

Klasing-Associates.com/law-library/tax-law-faq/international-tax-law-faq

"Before Relocating Abroad, Consider These 10 Guidelines" Where To Retire Magazine, September/October 2014.

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

Photo credit:  www.morguefile.com