Friday, July 9, 2021

Cut Expenses and Save Money for Retirement

The vast majority of retirees worry about money.  Only a small percentage of Baby-Boomers have managed to save enough money to continue to maintain their pre-retirement lifestyle once they stop working.  Some people hope for the best, but do not know how to improve their fragile financial situation. I have even heard from people whose "retirement plan" is to never retire, because they know they cannot survive without a job.  

 However, even if you are not prepared for retirement, or you lost your savings while struggling to survive during the recent pandemic or a recession, the time may still come when you will not be able to work.  What will you do then?  This week's guest post by Dan Hall is about how to make sure you are able to survive during those final years of your life, even if you are approaching those years with very little savings. 

You may also find it helpful to also read a book such as "How to Make Your Money Last."  It could be a good way to help you formulate your own plan for the future.

Money Matters: Tips For Cash-Strapped Seniors

by Dan Hall

Money can get tight quickly when you’re retired. When you are past your career years, financial woes may be much more concerning than when you could easily earn a paycheck. Thankfully, there are ways to get past the unpleasantries of dealing with a limited income. To do so, you must evaluate your situation, understand what resources are available to you, and act on ideas which can reduce your spending. Here are a few tips.

Evaluate

If you are falling short at the end of each month, especially if you are still working, it is time to take a hard look at your budget. This is essentially a spreadsheet or piece of paper that lists out your income and expenses. Knowing how much money you have coming in and going out can help you better define your financial goals.  If you have already retired, your choices may be more limited, but you still have choices you can make.

Look through your bills to determine if you have anything which does not get paid on time each month. If so, this is a good indication that you do not have enough income to support your spending habits. Part of your budgetary evaluation should also be to determine if it is possible for you to save any extra money for an emergency.

Understand

If tracking your money and saving a portion of it is not your strong point, you may benefit from working with a financial consultant. This is a person who offers a service to help you better understand your debt, income, and budget.  You may also want to contact your credit card company to see if they can refer you to a free financial service to help you with budgeting.  They would rather help you get back on track financially than see you default on your credit cards and other bills or, worse for them, have you file bankruptcy. The financial consultant can help you determine where you can cut your expenses.  

Cutting expenses may not be enough, however, to help you balance your budget. You may also need to find additional sources of income. Depending on your income and where you live, you may be eligible for additional government financial support, such as Supplemental Security Income. Your local welfare agency, Social Security office, or senior center can help you apply for and access this financial assistance.  You may also be eligible for other government programs such as lower cost medical coverage through the Affordable Care Act, SNAP (food stamps), housing vouchers, disability income, and other types of assistance. If you are a veteran, talk to the Veteran's Administration to see what assistance they may be able to provide.

Act

Once you have a handle on your incoming and outgoing money, and done what you can to lower your expenses and increase your income, you can then make better financial decisions in the future. If you find that you still need to cut costs, there are several ways to do so without sacrificing the joys of retirement.

If you own a home, start by paying off your mortgage or refinancing it, if possible.  If you have been making payments on your home for a long time, you may no longer have a large mortgage, and paying off the remaining balance could be possible. If you have enough cash in the bank to pay your home off, you will not only save on mortgage interest, but that will be one less major monthly bill to pay.  If you cannot afford to pay off the mortgage, you may be able to refinance it at a lower interest rate and/or for a longer term.  This could make your payments more affordabl.

Another option which involves your home is moving to a smaller home in a less expensive location. If you move from a large family home to a smaller home in a less expensive area, you could save hundreds of dollars per month. 

If you rent, rather than own a home, the same idea applies.  See if you can find a smaller, less expensive place to live.

When you are ready to make a move, you may want to look into getting help from professional movers in your area. Ultimately, hiring movers may be worth the cost, because it is safer, especially for senior citizens, and they will save you time.  Even if you have limited money, you may may be able to hire a local mover. This could prevent you from injuring yourself which, in the long run, could end up costing you more than the cost of the move.

Another option, if you do not wish to relocate, is to bring in a roommate or create an intergenerational living situation.  Do you have a relative or friend who would like to help share in your living expenses?  Such an arrangement could save you a significant amount of money each month, and help you get your expenses in line with your income.  Another possibility is to rent out your garage, basement, or part of your home for storage. Then, you do not have to deal with another person, but you can earn a little extra income.

Aside from your living situation, you can also reduce your monthly spending by cutting back on the number of times you dine out each month. If you do decide to go for a meal, ask for a senior discount or go during the lunch hour for lighter portions and a cheaper tab. Instead of dining out with friends, plan to have dinner at home once each month with the people you are closest to. This pulls double duty by saving you money while allowing for socialization.

Look for other ways to save money.  Do you have the least expensive plans to cover your cell phone, internet, cable TV and similar services?  Anyone receiving government assistance may also qualify for discounts on some of these services. Do you really need a telephone land line, if you also have a cell phone?   Are there streaming services which you rarely use?  

In addition, look closely to see if there are ways you can reduce your monthly expenditures for electricity and other utilities.  Are there less expensive ways to enjoy your favorite hobbies ... public golf courses, and free art classes at local community colleges, for example?  Look for all the ways you can cut your expenses.  Challenge yourself to see how much money you can save each month.

If cutting corners is not enough, and you are not eligible for government assistance, it may be time to supplement your income with a part-time job. A few great part-time jobs for seniors include bookkeeper, school bus driver, nanny, tutor, store clerk, and cashier.

Living on a fixed income does not mean you have to sacrifice your quality of life. While you may have to juggle a few things here and there, move to a less expensive housing situation, and cut costs, you may be able to make the most of the money you have. But do take the time to budget and learn all you can about money and your financial situation. Knowledge is power, and having a grasp on your finances means you can change and adapt when needed.

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post. 

If you are interested in learning more about saving money, financial planning, Social Security, Medicare, where to retire, common medical issues as you age, travel and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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

Photo credits:  Pexels

Friday, July 2, 2021

Timeshare Exit: Getting Out of a Timeshare Contract

 Like most senior citizens, my husband and I have attended a number of timeshare high-pressure sales events over the years. These are often held at beautiful, ocean front or golf course resorts.  After a few days enjoying the resort's amenities, it is tempting to think we would love to spend many future vacations in the same place, and owning a timeshare would be the perfect way to make it affordable.  They sound good, don't they?

We never purchased a timeshare, but we have a number of friends and relatives who currently own between one and four timeshare weeks a year at a variety of vacation resorts.  To be honest, most of our friends seem to have enjoyed the benefits their timeshares offered. Basically, they have a prepaid vacation location, and they often trade the time at their timeshare for an equal number of days in other places.  Some companies even allow them to trade a week at their resort for a cruise, instead.

Unfortunately, owning a timeshare is also an ongoing expense which can become a burden as people age, especially if their income drops.  In addition, if they develop a chronic illness, their ability to travel may become more limited.  The 2020-2021 Covid-19 pandemic also made it difficult, if not impossible, for many senior citizens to use their timeshares, although they were still expected to pay their share of the fees and property taxes each month.  

Once owners decide that having a timeshare is no longer convenient or affordable, many of them have discovered that it can be extremely difficult to get out of their timeshare contract.  Timeshare exit companies advertise that they can get you out of your contract, but some of them charge between $4,500 and $10,000 to handle this for you.  Many of them have a bad reputation and should only be used as a last resort. What should you do?

How to Get Out of a Timeshare Contract

So, how can you get rid of your timeshare?  Below are a list of suggestions from AARP, in the order you should try them.

Talk to the resort. - The first thing you should do is contact the company that owns the resort and ask to speak to the person who handles "deed-backs" or "surrenders."  If they are willing to take it back, you may be able to simply return the property to them so they can resell it. If they are resistant to taking it back, make sure you write a letter, letting them know that you are no longer able to use the timeshare, or pay for you timeshare.  Be clear and firm about your situation.

If they agree to let you return the deed to them, expect to pay a fee of several hundred dollars to take back the property.  In order to surrender the property ownership, you generally cannot be behind in your dues, or still be making payments on the loan.  Beware of sales people who try to talk you into keeping your property, suggest you upgrade to a more expensive form of ownership, or ask you to make any similar new commitments.

You may want to get help figuring out what to say in your letter by reading the inexpensive book  "Write A Letter: Cancel Your Timeshare and Get a Refund! A Step-by-Step Guide to Writing a Cancellation Letter that Works!".  I have to emphasize that you CANNOT get your purchase price refunded on a timeshare, and I cannot guarantee that writing a letter will work at helping you get out of your contract, despite the enthusiastic title. However, following the author's letter writing advice is probably a good place to start, and the least expensive option for you to try.

Stop paying the annual timeshare fees - If you do not have a loan and you stop paying the annual fees, this could "encourage" the resort to let you surrender the property so they can resell it to someone else.  Taking the property back voluntarily is likely to cost the resort less than foreclosing on it.  They may be reluctant to take it back, so you may have to convince them that you really cannot afford to keep it.  Once again, the best way to do that is by writing them a letter and explaining the situation to them.

Stop paying the loan  - Do not choose this option until you have first approached the resort and tried to return the property to them directly. If you stop paying the loan, the lender is going to try to collect on it, your credit report will take a hit, and you are still going to own the property, so the fees will continue to pile up.  You will also still be liable for the loan, but with additional penalties and fees.  You could just end up with more problems. You should only choose this option if you really cannot continue to pay because of your financial situation, such as if you have lost your income, or if you are in the process of bankruptcy.

Before you try the next two suggestions, you may want to read the Kindle book "Getting Out of a Timeshare: A Comprehensive and Precautionary Guide."It may offer some other approaches to getting the company to allow you to surrender your deed.  

Unfortunately, although AARP made the following two suggestions in the January 2021 issue of their magazine, everyone I know personally who has tried them has been disappointed because of their lack of success.  I am presenting these ideas here simply so you are aware of them.

Resell the timeshare - If the resort simply will not allow you to surrender the deed to them, and you cannot get out of the contract easily any other way, you may try reselling it. It is important to know that you probably will not get much money for it, unless it is a timeshare with a top-tier company such as Marriott, Hilton or Disney.  However, if you still owe only a small amount of money on it, you may be able to pay off all or most of the loan with the price you get for the resale, and then you can move on with your life, free of this obligation (as long as you fully pay off anything you still owe on it).  In the January, 2021 issue of AARP Magazine, the author suggested two websites where people sometimes have success selling their preowned timeshares ... tug2.com and redweek.com.  However, a friend of mine tried selling her timeshare on these sites and discovered, much to her dismay, that she had trouble even getting someone to buy her vacation time, let alone the timeshare itself.

Use a timeshare exit company only as a last resort - These companies charge high fees, often up-front, and frequently put a lot of pressure on the seller to sign up with them. They may use hard sales tactics, such as telling you that your children will have to keep paying the fees, even after you die.  According to the Better Business Bureau, this is NOT true and they recommend that people AVOID using a timeshare exit company because they get so many complaints about them.  Not only will you be losing control of the sale, and lose your ability to enjoy the benefits of owning the timeshare, but you could be required to pay the exit company between $4500 and $10,000 to handle the transfer for you, and the resort might have been willing to do it for just a few hundred dollars.  Only use a timeshare exit company as a last resort.

Finally, give a lot of thought to the future before you decide to purchase a timeshare.  Do not let a salesman at a fun resort pressure you into buying a timeshare while you are there on vacation. Will the cost of the monthly loan payments and the annual fees really save you money on vacations, or would you be better off just putting the money into a savings account and using that savings for your annual vacation?  You could go anywhere you wanted, and not be limited to the places where a timeshare has an affiliate location.  Consider the cost and complexity of eventually getting out of the timeshare.  Do you really want to deal with that if you become seriously ill or lose your job in the future?  Think it all through, and do not let yourself be pressured.


You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post. 

If you are interested in learning more about saving money, financial planning, Social Security, Medicare, where to retire, common medical issues as you age, travel and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission at no extra cost to you.

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

Photo credits: Photo of Laguna Beach taken by author

Sunday, June 20, 2021

Get Travel Tips for Italy and an Online Community of Friends!

 Americans love to travel, and Italy is one of their favorite travel destinations. There is so much to see and enjoy there ... the food, the wine, the art, the culture and more!  However, before you travel anywhere, it is always wise to do some research to maximize the pleasure you get from the trip. But where do you start?  If you do not know someone who has already traveled extensively in Italy, you may wonder who can you ask to get honest opinions and knowledgeable answers to your questions.  After returning from your trip, where can you find a group of people who share your love of Italy and will enjoy hearing all about your experiences?    

This week, our guest post is from the authors of Modern Italian, a website devoted to people who share a passion for Italy.  Both before your trip and after your return, you will benefit by joining this delightful community of people.  In addition, if you want to dig a little deeper before your trip, you may also want to read the "Italy Travel Guide: Essential Tips for First-Timers in Italy: How to Travel Italy: Rome, Florence, Venice, Milan, Sicily and Much More." (Ad)  This guide is available in paperback, on Kindle and on Audible, (my personal favorite) so you can listen to it, if you prefer!  

The guest post from the authors of Modern Italian is below:

How to Plan Your Dream Trip to Italy: And Keep it From Ending!

by mi.o

We understand. We have been there. We know that feeling. Actually, most of our members do, too. You went to Italy and fell in love with her. She was beautiful. She was like nothing you have ever seen. You can still feel her all around you. You can hear her sounds. You can smell her perfume. You can taste that gelato, that fresh bread, that pasta, that everything.

Now, you are home and wondering where she went.

You don't have to wonder any longer. We will bring her to you.

If you've never met her, we understand that planning a trip can be stressful and overwhelming. Let us make the introduction through our community before you get a chance to meet her in person.

The website mi.o is an outstanding resource to use when planning a trip to Italy. Community members have visited Italy, sometimes many times, and are very willing to provide recommendations to others as to how to best experience Italy: where to go, how to get there, what to do, and where to stay. mi.o is a community focused 100% on Italy and Italian culture and, therefore, the quality of recommendations from members is better than from other sites, which are not exclusive to Italy. The mi.o community also features experts from Italy who provide their first-person and “native” insight, as well.

The chat feature on mi.o allows for direct communication between members and experts, as there is always someone available to respond to a post or a question. For example, we asked members to share their dream trip to Italy, if they had no constraints, whatsoever. Many of our members selected new places from their travel bucket lists, and others chose familiar ones which elicit dear memories. Either way, these places have been experienced, tested, and come highly recommended!

Here are some of the recommendations made by mi.o members broken up by regions to make it easier for you to plan:

Emilia Romagna

● Ferrara

● Bologna


Liguria

● Cinque Terre

● Portovenere

● Santa Margherita

● Portofino


Veneto

● Venice

● Vicenza

● Verona


Lombardia

● Lake Como

● Lake Garda

● Milan


Piemonte

● Lake Orta


Umbria

● Spello



Tuscany

● Firenze

● Cortona

● San Gimignano

● Siena

● Castiglione della Pescaia


Islands in Southern Italy

● Favignana Lampedusa Marettimo Ustica Capri

● Sardegna


Puglia

● Alberobello

● Tremiti

● Polignano a Mare

● Locorotondo

● Monopoli

● Castallano Grotte

● Poligano Mare

● Lecce

● Noci

● Gargano


Sicily

● Cefalù

● Erice

● Ragusa

● Calascibetta

● Licodia Eubea

Our members also share their personal experiences while traveling, so you can make the best out of your trip. Pat, one of our mi.o members, states, “Puglia is beautiful. We visited twice and based ourselves in Alberobello. During our time in Puglia, we visited 17 towns including Alberobello. You must try a signature dish - pureed fava beans with chicory (fave e cicoria) from a great restaurant in Alberobello called Gli Ulivi.”

Many of our members can also offer firsthand experience about living in Italy as a retiree. One of mi.o’s experts, Ilene, writes an award-winning blog about living in Italy, after having lived there for two years, now. She uses the community platform to share her insight, mingle with other members, and even learn Italian to help with her time in the country!

Once your trip to Italy is over, it is completely natural to seek outlets to continue the “love affair” with Italy. Our community members relate entirely to return travelers and are eager to hear about your experience. Visitors to Italy often want to learn how to prepare Italian food, speak Italian, buy Italian products and in general, deepen their understanding and “practice” of Italian culture. mi.o provides Groups and Courses like our Italian Speaking Program for Adults for people to learn to speak Italian before their trip and after.

More about mi.o:

mi.o is a community where you can meet others who share your passion for Italy, the Italian language, and Italian culture while learning through self-expression, thematic groups and expert-led courses and live sessions. Membership is FREE and all are welcome. You are invited to join mi.o and tell your friends, too!

Learn more at:  www.modernitalian.org

You may also want to prepare for your trip to Italy and many other parts of the world by purchasing a hand-held language translator. (Ad) There are a number of different choices available. 


You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 
If you are interested in learning more about retirement, Medicare, Social Security, common medical issues as we age, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

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

Photo credit:  modernitalian.org

Monday, June 14, 2021

In-Home Care for Sick or Disabled Adults - What to Expect

 At some point in our lives, it is not unusual for many adults to need some type of in-home care.  It could be because of a chronic illness, or a few weeks of temporary assistance after major surgery.  Often, the recipient of this service does not know how to hire the right service, or what to expect from them. This week we are pleased to have a guest post from Illuminated Hearts, a home-care agency in Philadelphia.  While you may not live in their service area, the information they provide will help families all over the country. 

In addition to getting a home-care aide for yourself or your loved one, you may also want to get them a medical alert device (Ad) so they can call someone for help whenever they are alone.  There are several to choose from, and they can bring you peace-of-mind.

This guest article will also help families know more about the typical cost of a home-care agency, which can vary somewhat depending on where you live, as well as the level of care the patient needs.  Below is the helpful post from Illuminated Hearts. 

What Does It Mean to Receive In-Home Care?

From Illuminated Hearts

We all want to maintain our independence. However, several underlying factors may hinder this. It gets even more complex when you need a great deal of care, and you rely on your relatives to get things done for you, since most family members may already be very busy with their own daily activities. This is where in-home care workers come in, because they can provide assistance whenever the family is unable to. 

In-home care refers to skilled home health care services which are delivered directly to a client in the comfort of their homes. The specific services offered depend on the client’s needs. The clientele for these services include:

     Disabled people

     Chronically ill patients

     People recovering from surgery or illness

     Aging adults, including those who are frail or experiencing dementia

 

Benefits of In-Home Care Services

You can reap many benefits by hiring someone from an in-home care service. These benefits range from:

     Personalized care at home with a broad range of services

     Affordability - typically less expensive than skilled nursing home care

     Retaining your independence

     Staying close to your friends and family

     Faster recovery from illness or injury

 

The Cost of In-Home Care Services

The first step in setting up an in-home care plan is knowing the costs involved. The prices vary due to different factors such as:

     Geographical location

     Client’s health

     Amount of time required to care for the patient - from a few hours a day to 24-hour a day care in extreme situations

     Level of care required

 

According to Genworth’s survey, in the US the average cost of in-home care ranges from $4,290 to $4481 per month. The survey was based on an 8-hour day care schedule, which is equated to approximately $19 per hour and $149 per day.  Your cost may be lower if you only need assistance part of the day, depending on the amount of care the patient needs. Typically, the home-aide companies require a four-hour daily minimum.  Even a few hours a day may be sufficient for the caregiver to help your loved one with personal care, make sure their meals are prepared, do a little light housekeeping, and set up their medications for the day.  This could take a tremendous burden off family members.

 

Types of In-Home Care Services

Each in-home care service is unique and is based on the client’s preferences and needs, as well as the individual caregiver’s ability and training. Professionals who offer home care services in Philadelphia will always ensure that you hire the right caregiver or medical aide who is capable of matching the patient's specific needs.

1.   Personal Caregiver

This is perhaps the most common type of in-home care service provided. It is also known as non-medical care, and it is meant to help the elderly or someone with a disability participate in their normal daily activities. 

Non-medical care does not need to be recommended by a doctor. However, if your loved one requires a long-term service which runs in shifts of up to 24 hours, throughout the week, you may require a live-in type of service. 

Duties Performed by Non-Medical Caregivers

     Close supervision of patients suffering from memory-loss conditions

     Personal self-care: bathing, dressing, using the toilet, and helping the client take their medications on time

     Companionship at home, and transportation to and from doctor appointments

     Engaging clients in hobbies and other activities to keep them active

     House-keeping activities such as buying groceries, meal preparation, laundry, light housekeeping and running small errands

     Mobility assistance including transfer between a wheelchair and bed 

     Enhanced home safety, including prevention from falls

 

2.   Private Nurse Care

This kind of service requires a registered nurse who can work either in or outside of a hospital setting. It is also known as home-based skilled nursing, and it is intended for clients who have a chronic illness, injury, or who have undergone surgery. 

A doctor must recommend a private nurse. Nursing care is sometimes needed long-term, and may run in shifts of up to 24 hours throughout the week.

Duties Involved

     Post-treatment care and monitoring of chronic conditions such as spinal injury or traumatic brain injury

     Post-surgery care or gastrostomy care

     Administering medications, including injections or IV therapy

     Maintaining feeding tubes, oxygen tubes, a catheter, and other medical devices

 

3.   Home Health Care - Medic Certified Therapists

This kind of service requires a licensed health practitioner such as a physical, occupational or speech therapist. It is also known as medic-certified home health care, and is meant to provide skilled medical care for patients recovering from an illness, injury, or after a hospital admission. 

These types of therapies must also must be recommended by a doctor. This type of care is also short-term.  The health practitioner makes visits to the home, which typically last up to one hour. These visits will continue until individual expectations and goals are met.

Duties Involved

     Physical therapy: help with strength building exercises and doing stretches meant to ease muscle pain

     Occupational therapy: help patients maintain the skills needed to go back to their daily activities

     Speech-language therapy: help improve speech or communication disorders

     Medical social work: provide the required necessary counseling for patients


Choosing the Best In-Home Care Service


1.   Get References From Your Physician

Most physicians know the best caregivers in their area, and they can advise you accordingly on the in-home care agency or agencies to use.

2.   Have a Budget and an Affordable Payment Plan

It is essential to know how much you can afford and explore all possible options if you need a caregiving service. Also, ensure that you thoroughly discuss your payment plan to avoid unexpected additional charges which may come up in the future.  If the patient has long-term care insurance, you can use that.  If they have a very low income and few assets, their care may be covered by Medicaid. Some types of temporary care, such as physical therapy or short-time care after surgery, may be covered by Medicare or their health insurance.  Explore all your options with your insurance company and with the caregiving agency. They may be able to help you guide you and assist you in completing the necessary forms.

3.   Clearly Define the Responsibilities

Ensure that the caregiver you choose knows everything that is involved and is comfortable handling the necessary care, as stated.

4.   Conduct a Background Check

This has become easier because of the online resources which are available. You may use a company which specializes in conducting background checks.  This will help you know more about the agency and caregivers you will be dealing with.

5.   Know the Caregivers’ Qualifications

This information includes learning about the the training and certifications the caregiver has. Basic First Aid skills are essential for all caregivers, in the event of a health emergency or minor accidents in the home. 

It may take some research before you trust a stranger in your home. Although an in-home caregiver is an excellent option for most patients, be sure to do your homework and hire the best in-home care service to assist your loved one.

About Our Company

Illuminated Hearts is an agency that provides affordable home care services in Philadelphia. We are a home care agency in Philadelphia which accepts Medicaid, allowing us to provide affordable home care for seniors, the disabled, and the intellectually disabled. Schedule your free assessment today by calling 215-921-6624.

You may also learn more about what to expect from a home care aide by reading "Providing Home Care: A Textbook for Home Health Aides."  (Ad) 


You can find gifts for retirees and others at my Etsy Store, DeborahDianGifts:  http://www.etsy.com/shop/DeborahDianGifts

Enjoyed this post? Never miss out on future posts by following us.  You will receive a weekly email with the most current post.
 
If you are interested in learning more about retirement, Medicare, Social Security, common medical issues as we age, financial planning, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

Disclosure: This blog may contain affiliate links. If you decide to make a purchase from an Amazon ad, I'll make a small commission to support this blog, at no extra cost to you.

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

Photo credit: Pixabay

Friday, June 4, 2021

Semi-Retirement - The New Retirement Model for Baby Boomers

Many Baby Boomers have reservations about completely ending their careers at an arbitrary age during their 60s. They may feel they do not have enough money saved to last the rest of their lives, especially if they come from a long line of people who lived into their 90s. They may also worry about the social isolation they will feel when they no longer spend time with a group of co-workers on a daily basis.  Some fear they will be bored and have nothing to do, particularly if they do not have hobbies they look forward to enjoying after retirement.

As a result of these concerns, this week I particularly appreciated receiving a guest post from the authors of BoomerBuyerGuides.com, another website which strives to keep Baby Boomers informed, as we all navigate the complicated process of retiring.  Their post is on how to pursue "semi-retirement," so we can gradually ease ourselves into full retirement at some point in the future.

If you are feeling a little uncertain about what the future holds for you after you retire, you may want to read "Shifting Gears to Your Life and Work After Retirement."  (Ad) It has some great advice and will help you face the future with greatr optimism.

Below is this week's guest post:


Semi-Retirement - What is it?

by the authors of BoomerBuyerGuides.com  

Many Baby Boomers choose semi-retirement over full retirement. It is a trend which continues to grow. There are many compelling reasons for making this choice but, while there are advantages to semi-retirement, there are some drawbacks too. Let’s take a look at what semi-retirement is and review some pros and cons on the subject.
 
What is Semi-Retirement?

Before we discuss the pros and cons of semi-retirement, it is important to know what it is. Semi-retirement comes in different forms but, basically, when a person chooses to semi-retire, they still plan to work but far fewer hours. The most common reason for the decision to semi-retire is to improve cash flow to meet financial obligations, and/or pay for luxuries like travel or investments. But there are other reasons too.
 
Pros and Cons of Semi-Retirement

People who do not fully retire do so for two reasons. For some people, full retirement leaves them feeling bored and depressed. Working gives their lives purpose and a focus, as well as additional cash to spend or save.

The second reason revolves solely around money. Someone might want to fully retire, but cannot afford to. Others want to maintain a steady income throughout retirement.

In your first few years of retirement, extra income can make life easier and provide you with a better standard of living. So, at least for a while, it makes sense to transition to semi-retirement before full retirement.

Semi-retirement gives Baby Boomers the freedom to work when they want, live where they want, travel, and still produce an income.

Semi-retirement sounds like heaven on earth for some people, but it does come with potential disadvantages. Before you jump into semi-retirement, you want to consider the negatives too.

Should You Start Your Own Business in Retirement?

The first factor to consider is particularly for those who want to start their own business. 
Some people decide that retirement is the time to become their own boss, start a small business, and they take this opportunity to do it! You need to realize, however, that when you first start, it becomes easy to work more hours than you anticipated, or more hours than when you worked at your job full-time. However, some people may find that this motivates and excites them, and working many hours at the start does not bother them. Keep in mind that if your overall goal is to work less, starting a business might not be the best option for you, especially if you are a hard worker.

You might want to avoid starting a business if you need to use a large portion of your savings to finance the new operation. There is no guarantee your business will become successful and generate a profit. You do not want to end up losing money which was intended to help you get you through your retirement. If you are intent on starting your own business, make sure you set a strict budget and stick to it. Do not overspend, unless you are sure you can afford it.

The other potential drawback involves your time. You may come to regret all the time you spend working, when you could have chosen to spend more time with your grandchildren, friends, or family members.

What Jobs Can a Semi-Retired Person Do?

Instead of starting your own business, you may decide to work fewer hours at a regular job. In fact, you may already work at a place which is willing to let you reduce your hours to part-time, so you can keep your job and semi-retire. If you are not looking for a change (other than a reduction in hours) this can be a great option. Unfortunately, this option is not available to the majority of people, so they need to look for other possibilities in finding a semi-retirement job. 

One of the most popular options for those looking to semi-retire is becoming a real estate agent. Working as a real estate salesperson allows for flexible hours and, depending on where you live, it can produce a significant income. It is also fairly simple for Baby Boomers to become a real estate agent.

Consultant jobs are another popular choice for those who choose the path of semi-retirement. The job comes with incredible flexibility, and ideally being a consultant will allow you to work as much or as little as you want. It also allows you to pass your decades of experience onto another person who is in the industry where you built up your career.

These are not the only jobs you can do during semi-retirement. You could set up several small businesses or find a part-time work-from-home job. For example, you could start a blog about your experiences or life. Creating an online store using drop-shipping from a major vendor is another example. You could also give music lessons or tutor people in other skills you have, for example offering cooking classes in your home. You could even start an business where you offer to share the expertise you have accumulated from your career over the years.

Final Thoughts

The decision of whether to semi-retire or completely retire is not an easy choice. There are many things to consider which can impact the final years of your life, depending on the route you take. You may lose time or money during the first phase of semi-retirement if you start a new business. You also need to realize you will have less free time if you decide to continue working. However, semi-retirement can help you transition into full retirement and generate extra income which will come in handy when you finally do fully retire.

About BoomerBuyerGuides.com

Baby Boomers themselves, David and Alice Goldstein founded BoomerBuyerGuides.com a few years into their own semi-retirement. They publish articles which focus on the practical needs of Baby Boomers born between 1946 and 1964.

For more great job ideas for workers at the end of their career, read "The Encore Career Handbook: How to Make a Living and a Difference in the Second Half of Life." (Ad)


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