Where Retirees Pay Low Taxes

Once you leave the work force, many retirees are concerned about how to pay low taxes so they can really stretch their Social Security and pensions and make every penny count.  After all, if you are going to receive $1200 to $2400 a month in Social Security (a typical range), the money will go a lot further in low-tax, low cost-of-living states like Texas or Washington rather than states like California or New York.  Below is some of the information you will need to know in order to make the right retirement decision for you.

States With No State Income Tax

The first issue that you need to consider is whether or not you will have to pay state income tax on any of your retirement income.  The states listed below, do not have a state income tax on regular income, although there are some other issues, mentioned below, that you want to consider.

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

New Hampshire and Tennessee do tax your dividends and interest income.  In addition, some of those states, like Texas, have unusually high property taxes that can amount to more than residents would have paid in income taxes in other states.  It is important for retirees to consider ALL the taxes that they will pay in their new location, including sales, personal property, estate and inheritance taxes.

Cities with Moderate Taxes and a Desirable Quality of Life

Paying low taxes is not enough to guarantee a pleasant retirement.  Most retirees also want to enjoy a pleasant lifestyle, as well.  In other words, they are looking for places where they will be able to afford to live on their retirement income while, at the same time, being able to have fun in locations where they feel safe, with good transportation and access to quality healthcare.

Many retirees also want to be able to live in the same region of the country where their adult children and grandchildren live.  Often they want easy access to parks and beaches or lakes.  They may be looking for a mild climate.

With all those considerations in mind, here are "Eight Tax-Friendly Cities" that, according to Where to Retire magazine, may meet your overall needs:

Fort Lauderdale, Florida
St. Marys, Georgia
Spartanburg, South Carolina
Hattiesburg, Mississippi
Manitou Springs, Colorado
Tempe, Arizona
Boulder City, Nevada
Payallup, Washington

Of course, this is just a sampling of the possible choices that are available.  As you can see, several of the listed cities are actually in the states that do have a state income tax.  This is because the magazine looked at the entire tax burden that people experience, including property and sales taxes.  Even if those particular cities will not work for you, you may consider other affordable and interesting towns within those same states.  In particular, Florida, Georgia, South Carolina and Arizona are popular and affordable retirement meccas.

As you can see, you may not wish to move to a state simply because it does not have income taxes, until you carefully study what other taxes you may be expected to pay, as well as the overall cost-of-living.

The best state for retirement may be different for each individual.  Some of the questions you may want to ask yourself:

Do you plan to buy or rent in my new location?
How do home prices and rents compare from state to state?
What will be the total impact of the taxes you will be paying?
What is the overall cost of living?
What will it cost to enjoy your favorite pastimes, hobbies and activities?
Will you have convenient access to healthcare and other services?
How much will it cost to travel to visit your loved ones?

Once you have researched the answers to these questions and considered the amount you will be paying in taxes and other expenses, then you will have gone a long way towards deciding the best place for you to live economically during retirement, while paying the lowest taxes possible.

Source:
 
"8 Tax-Friendly Cities," Where to Retire magazine, January/February 2015 issue, pg. 52.

For more ideas about good places to retire, use the tabs at the top of this article to find links to dozens of other articles, including where to retire both in the United States and in other countries.

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

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Long-Term Care for Low Income Retirees

In other posts on this blog, we have discussed the reasons why people may benefit from purchasing Long Term Care insurance, the various alternatives to this insurance, and the Veteran's Administration benefits that could help you pay for assisted living or nursing home care.

What if none of these options will work for you?  Perhaps you cannot afford long term care insurance or poor health prevents you from passing the physical.  You may not have served in the military, at least not when a war was going on, so you do not qualify for VA benefits.  

In addition, Medicare is not an option because it will only pay for short-term care, such as when you need to spend a few weeks in a rehabilitation facility after you have surgery.  

Do not give up on your ability to find affordable long-term care, however.  If none of the above programs are an option, there are other choices which can help the low-income elderly pay for permanent care, once they reach a point in their lives when they are declining physically and/or mentally.

First, a significant number of the elderly are eligible for long-term care through Medicaid.

Who is Eligible for Medicaid?

In order to be eligible to receive long-term care and have it paid for by Medicaid, you need to meet these criteria:

1. You have to be willing to apply all of your existing assets towards your care.  This is usually not an issue for people who have few remaining assets and are approaching the end of their lives.
2. You must have a low retirement income, which applies to nearly everyone living solely on the average amount of Social Security.  Even if your retirement income is greater than the median Social Security payment, you may still qualify if you have high medical expenses.
3. In the case of a married couple, they do NOT need to exhaust all their financial resources in order for one of them to have their long-term care covered by Medicaid. In most cases, the healthy spouse can keep their home and certain other assets, although they may still have to make significant sacrifices in order to contribute to their partner's care.

Medicaid for Ailing Elders

Medicaid is designed to be a safety net for Americans who need more care than they can afford to pay for privately. Medicaid can be used to pay for long term nursing home care in all states. In a number of states,  Medicaid will also pay for assisted living communities or other options such as in-home care. 

In some states, residents can even access Medicaid through a program called PACE (Program of All Inclusive Care for the Elderly).  PACE will cover all of the senior's care and medical needs through a single agency.  The goal of PACE is to help people who have traditionally been sent to nursing homes to stay at home, with support.  You can learn more about that program at www.medicare.gov. 


State Medicaid Guidelines


Every state has its own guidelines, requirements and paperwork, so you will need to contact your State Medical Assistance office for more details about how their programs work.  Here are two websites that can help you:

• Call 1-800-MEDICARE: www.medicare.gov
• Visit the Medicare and Medicaid Services website www.cms.hhs.gov

You may also want to speak with an elder law attorney who can help guide you through the complicated process of completing a successful Medicaid application.

 

Veteran's Aid Can Help Both Veterans and Their Spouses

Don't forget that there are also programs to help Veterans who have served in the military during a time when our country was at war.  Many widows and widowers of veterans are not aware that they may also be able to receive benefits to help cover long-term care.

 

How to Apply for VA Benefits

Like Medicaid, the application process for your VA benefits can be extremely complicated.  To get help, you may want to contact a Veteran Services Officer. They are volunteers who are located throughout the United States,  and you can find them through organizations like the American Legion, or Veteran of Foreign Wars (VFW) lodges.

To apply for VA health care or determine eligibility,

• Call (877) 222-VETS: Health Benefits Service Center
• Contact your local Veterans Benefits Office or Medical Facility
• Visit the Department of Veterans Affairs website www1.va.gov/directory/guide/home.asp

 

How to Find the Right Assisted Living or Nursing Home Program

How can you find the right program or facility to take you or your loved one?  Where do you start?  How can you get help completing the complicated applications necessary in order to get Medicaid or MediCal to pay for your care?  There are companies that will help you find an available bed in the appropriate facility and they will often assist with the application process, as well.  Here are two well-known companies:

A Place for Mom

(866) 344-8005

http://www.aplaceformom.com/search

California Nursing Home Solutions

(They handle the Medi-Cal Applications, etc. for you)

(800) 773-6467

http://www.nhscare.com/Home/tabid/1066/Default.aspx

In addition, you may want to contact nursing homes, assisted living facilities or senior centers in your area and ask if they can help you with the MediCal or Medicaid application process.  Many of them can walk you through the process or they can refer you to a specialist who can help you.

For additional retirement information, use the tabs at the top of this page.  They contain links to hundreds of additional articles on retirement.

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

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Age In Place - Retire Where You Live Now

Although this blog often contains articles about exotic places to retire, according to AARP about three-quarters of retirees would like to stay in their current home or, at the very least, in their current neighborhood.  There are a few issues that can make this difficult, however,  First, your current home may be too expensive to support once you are living on a fixed income.  Second, it may not be properly designed to accommodate someone who is aging, especially if they develop any disabilities (which is the situation for about two-thirds of people by age 85).  For example, a multistory home, like the ones in this photo, may need to be adapted or replaced with a single story home, if you plan to age in place.

However, despite a few challenges, you do not have to give up your dream of retiring where you currently live.  You just need to plan properly.  Below are some things to consider, as well as some tips to make it easier for you to age in place.

Can You Afford to Stay Where You Are?

Are you going to be retiring with a mortgage or high taxes and maintenance costs on your current home?  Now may be the time to look for a smaller home in your current area.  Sometimes just moving a short distance to a smaller house will make it easier for you to continue to live in your present neighborhood.  This means you do not have to change the places you shop, the doctors you see, the church you attend, access to your family and friends, etc.

It's important that you make this change before you retire.  You don't want to go through your savings before you move and you want to make major lifestyle changes while you are as young as possible.  It will be much easier.  In addition, if you need to have a mortgage on your new home, it will be easier to qualify for the loan and you will get a lower interest rate if you make the move while you are still working.

Modifications You May Want to Make to Your Retirement Home

Whether you decide to stay in your current house or move to a smaller one nearby, you may need to make some modifications.  It is smart to do these things while you are still working and before you are living on a fixed income.  Making these modifications could help you stay out of a nursing home and in your own home much longer.

Here are some of the changes you may want to make:

A downstairs bedroom with full bathroom
OR Getting a stair lift for your staircase
Grab bars in the bathrooms
A shower chair
Automatic night lights in a variety of outlets (including battery powered night lights) 
Non-slip mats under area rugs
Raise your electrical outlets so that they are easier to reach
Replace door knobs with levers
Rearrange cabinets so you never need to climb on a chair to get commonly used items 

Some of these items, such as owning a shower chair or installing night-lights, can be done immediately and very inexpensively.  Other changes, such as designing a downstairs master bedroom with full bathroom or installing a stair lift, can be more complicated or expensive.  However, in some cases you could remodel your current home by expanding a downstairs half bath into a full bath and making minor alterations to a rarely used downstairs room that is currently being used as a formal dining room, den or home office.  If this will not work for you, then it might be best to move to another, nearby home.

You may also be eligible for financial assistance in remodeling your home to make it work for you, especially if you have some specific disabilities.  Check the resources at the bottom of this article for links to sites that can provide you additional information about obtaining financial assistance to make modifications to your home.

Depending on the health issues you or your spouse have, there are some specific modifications you could do that would make your home more handicapped accessible.  For example, if someone in your home uses a wheel chair, you may need wider doorways, a more accessible bathtub and lower kitchen cabinets.  You should take these alterations into consideration if you are doing any other remodeling in your home.

Be Sure You Can Call For Help When You Need It 

If you are living alone in your home, without nearby relatives or caregivers, you need to make sure it is easy for you to summon help when you need it.  For example, you might want to get a medical alert device that you wear as a pendant.  You might also want to install an alarm system on your home or obtain other high-tech devices so you know if someone enters your home.

Adding a few simple items of technology will increase your security and make you less likely to feel helpless after a fall or injury.

For example, medical alert devices that you wear as a pendant can be used to connect you with a live operator when you push a button.  The operator can call a relative or neighbor for you or, when necessary, contact emergency personnel.

A security system will discourage burglars.  It can also be setup with a loud chime that will alert you if anyone enters your home while you are there.  If the alarm goes off when you are not at home, the company will automatically notify the police that there has been an unauthorized entry.  In addition, if a fire starts in your home, you will be awakened by a piercing alarm and the fire department will automatically be summoned. 

Making use of these high-tech devices could save your life and make it much safer and easier for you to age in place and stay in your own home.

Join Your Local Senior Center

If you decide to remain in your own home when you retire, it would be a smart decision to become involved with your local senior center.  They provide a variety of services that include exercise programs, entertainment, activities, informative classes, low-cost meals and access to a variety of senior services such as free tax preparation, meals-on-wheels or transportation to doctor's offices. 

For the same reasons, you will want to stay involved in your current activities as long as possible, including your church or temple, book club, bridge group, or social organizations. 

Participating in as many community activities as possible is important for your physical and mental health.  They will also help you avoid one of the most serious problems experienced by many people who age in their own homes, away from other senior citizens ... loneliness.

You will also want to use the tabs at the top of this blog for more information about retirement planning.

Learn More by Checking out These Sources:

http://finance.yahoo.com/news/how-to-cut-your-single-biggest-expense-in-retirement

http://www.eldercare.gov/Eldercare.NET/Public/Resources/Factsheets/Home_Modifications.aspx

http://rebuildingtogether.org/

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


Photo credit:  www.morguefile.com

Strokes Cause Death and Disability

While most people are more concerned about heart disease and cancer, strokes are also a risk that you should take seriously, especially if you have high blood pressure.  Because many people do not feel ill prior to their stroke, it is often called the silent killer.  It can strike you down anywhere ... while driving a car, taking a walk or puttering around your house.

A stroke happens when the blood supply to your brain is interrupted.  This damages the brain cells in the portion of the brain that is deprived of oxygen.  Nerve cells can begin to die within minutes.  Usually this happens because a blood clot blocks a blood vessel in the neck or brain.

About 800,000 people experience strokes in the United States every year; sadly, about 80% of them are considered preventable.

Symptoms of a Stroke

How can you tell if someone is having a stroke?  Experts suggest that you think of the word FAST.  The letters stand for:

F - Face Drooping
A - Arm Weakness
S - Speech Difficulty
T - Time to Call 9-1-1

It is extremely important that you get to a hospital immediately if you suspect that you or someone you know is having a stroke.  There are treatments that can often keep you from having permanent damage as a result of a stroke, but they only work if administered within the first three hours.  Since it takes a little time to diagnose the stroke and set up the treatment, you should try to get the patient to the hospital within the first hour or two.

Stroke Risk Factors

Below are the risk factors that make you more likely to have a stroke.  Fortunately, some of these are the result of lifestyle choices you can change.  Other risk factors can be controlled with medication.  If you want to live a long, healthy life, then you need to take immediate steps to reduce your risk factors wherever possible.

*  High blood pressure is the most significant cause of strokes.  If you consistently have a blood pressure reading of above 140/90 then you are at an increased risk.

*  If you have had a prior stroke, you are at greater risk of another one.

*  Family history of a stroke also increases your risk.

*  Diabetes

*  Heart disease, including atrial fibrillation

*  Obesity and a sedentary lifestyle

*  High cholesterol

*  Smoking

*  Alcohol and/or drug abuse

*   Aging -- the one factor that affects all of us


Sources:

http://strokeassociation.org/STROKEORG/WarningSigns/Stroke-Warning-Signs-and-Symptoms_UCM_308528_SubHomePage.jsp

"Strokes: Know Your Risks," Answers Magazine, 2015, pg. 54

For more information about medical issues that could affect you, use the tab at the top of this page to be connected to dozens of additional articles about health concerns.

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

Photo credit: morguefile.com

Best Cold Climate Areas for Retirement

Are you willing to live in a cold climate when you select your ideal retirement community?  While many people think of Florida or Arizona as the sunny, warm spots where they want to live, other people are more interested in issues such as affordable housing, low taxes, generous long-term care benefits from Medicaid and the possibility of working for at least some of the years after they turn 60.  In addition, they may want to live in senior-friendly small towns with less traffic and low crime.

In November, 2014, Money Magazine offered their list of the "Best Places to Retire," based on criteria that did not factor in the weather.  As a result, they came up with choices that are different from the typical list of retirement locations which we frequently see listed.  All of these places get snow and icy weather.  However, as a trade-off, they have other qualities that may be more important to many retirees. 

Money Magazine divided their choices into the three categories shown below:

Most Affordable Place to Retire

Bella Vista, Arkansas - With a median home price of about $100,000 and a median rent of $900, as well as low property taxes, this is the most affordable place to retire on their list.  In addition, for a low monthly fee of under $25 a month, homeowners can use seven golf courses, as well at the town's swimming pools, tennis courts, and fitness facilities.  There are lakes, streams, forests and walking trails.  One aspect of this town that is particularly appealing is the fact that 52% of the residents are over age 50.  In addition, there is a strong job market for people who want to continue to work.

Runner ups:  Sioux Falls, S.D. and Morgantown, W. VA.

You can read more about the selection of the above locations in these articles:

http://nowitcounts.com/topping-money-mags-best-places-retire-list-bella-vista-ak/
http://kikn.com/sioux-falls-named-one-of-the-best-places-to-retire-by-money-magazine/
http://www.wvgazette.com/article/20141102/GZ05/141109992

Best Place for a Second Career

Iowa City, Iowa - For people over 60 who want to remain engaged in the workforce, this town has an unemployment rate of only 3.1%.  The largest employer is the University of Iowa, which attracts people who have retired from other universities, as well as those who have worked in the corporate world.  Approximately 23% of the population is over the age of 50.  Median home prices are about $191,000.

Runners up:  Bozeman, Montana and Casper, Wyoming

You can read more about the selection of Iowa City and Bozeman below:

http://thegazette.com/subject/news/business/iowa-city-makes-best-places-to-retire-list-20141028
http://www.nbcmontana.com/news/bozeman-makes-list-of-best-places-to-retire/29394446

Best Place for a Well-Rounded Retirement 

Northfield, Minnesota - If you are looking for moderate home prices, good health care, job opportunities and a small town feel, this community may be your best choice.  About 29% of the population is over the age of 50.  It is located only 55 miles from the world-acclaimed Mayo Clinic.  The median home price is $200,000.  The town has two colleges, which gives retirees the opportunity for continuing education classes.  It is also possible to enjoy live theater, orchestra performances, choral groups, and more. 

Runners Up:  Bellingham, Washington and Manchester, New Hampshire

You can learn more about Northfield below:

http://minnesota.cbslocal.com/2014/10/27/northfield-named-best-place-to-retire-by-money-magazine/ 

As mentioned earlier, these communities will not be at the top of the list for people who are looking for a warm, sunny place to retire.  However, for those who are looking for other amenities during their retirement years, such as affordable housing, low crime, low traffic, and interesting activities, the above list above may give them some great places to start their search for the perfect retirement community that meets their needs.

For links to dozens of additional articles about where to retire in the United States and overseas, use the tabs at the top of this article.

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

Photo credit: www.morguefile.com