Retirement Planning Is a Three-Legged Stool

Shortly before my recent retirement from my long-time job for a local school district, I attended a retirement seminar that was designed to help employees make sure they are financially prepared to stop working.  One of the things the speaker told us was that retirement is a three-legged stool, with Social Security as only one of the legs.  Here is how he explained it:

As mentioned above, the first leg of your retirement stool is Social Security.  This national pension program was never intended to be the only way that retirees supported themselves during their senior years.  Since recipients only receive a median benefit of about $1200 a month, this is not enough for anyone to fully support themselves.  If you had a stool with only one leg, you might be able to balance on it for a short while, but eventually you would fall over.

The second leg of the stool is a pension, annuity or fund.  At one time, many private companies provided their employees with a pension.  Today, only a few private companies still provide this perk, although some public employees, such as non-certificated school employees, still receive a pension.  Pensions are complicated.  For example, I had a job in which I paid into both the state pension plan as well as Social Security.  Therefore, I am able to collect both.  However, many people (such as California teachers) are only able to collect one or the other, in most circumstances.  If you do not have a pension, you may wish to take a portion of the money you have saved in your 401K or IRA and use it to invest in an annuity or investment fund in order to provide additional income.  This is the second leg of your stool.  At this point you have income from Social Security and income from a second source ... a pension, annuity or mutual fund.

The third leg of the stool, as suggested by the speaker at the retirement seminar, is your savings.  This is money that is accessible and not tied up in an investment.  It is money you can use in an emergency.  Everyone should have an emergency fund.  The size should depend on your available assets and your income.

The retirement consultant did not discuss the fact that the majority of Baby Boomers do not have enough savings to invest in an annuity or fund, let alone have enough put aside for emergencies.

However, if he had talked about it, he would probably have suggested that Baby Boomers find a way to earn a little extra money after retirement, as well.  As you will see in the Money section of this blog, I have written several blog posts over the years about ways that retirees can continue to earn money after they retire in order to supplement their income.  (We might think of a retirement job as the fourth leg of your stool.)

I have also written posts about how to save money, including cheap places to retire in both the United States as well as overseas.

In addition, you may want to consider downsizing.  Many people who have a lot of equity in their homes decide to sell the house, downsize and use the money they now have to put in savings and invest in various ways.  This is how they get the other two legs of their "stool."  Some people choose to get a reverse mortgage.  However, as I have mentioned in the past, this can be a dangerous decision and should only be reserved for people who are quite elderly.

If you are hoping to retire and you haven't saved enough money, you may want to check out some of the posts listed in the index articles listed below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

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

Public domain photo of money is courtesy of www.morguefile.com

Kolter Planned Communities for Retirees

In researching appealing retirement communities around the United States, I have discovered that there are relatively few builders who are involved in this niche market.  As a result, I thought it would be helpful to my readers to do a series of reports on some of the specific developers you may encounter while you are shopping for a retirement home.

When I posted about Cresswind at Lake Lanier recently, I discovered that the developer, Kolter, has also built several other very appealing communities in the Southeastern United States.  Here's a little information about Kolter and the various neighborhoods that they have built.  Not all of these communities are age restricted.  However, they all offer a variety of amenities such as clubhouses, pools and recreational facilities.  In addition, I recognize that some retirees may prefer to live in a neighborhood that is not age restricted ... for example, if they want to share a home with their adult children or they like to live in a more diverse community.

The Kolter Group

Kolter is a real estate development and investment firm that is headquartered in Palm Beach County, Florida.  It has built over 3,400 homes in the Southeast and, when their currrent projects are completed, they will have built about 13,000 residences.

Since I have never personally dealt with this home builder, I thought it would be smart to check the company's Better Business Report.  As of early September, 2013, the BBB rated Kolter Signature Homes, LLC  as A+.  The report said that they received that score based on 16 factors, including the length of time they have been in business (since 1996), general background information, and the fact that there has been no complaints filed with the BBB.  Specifically, there were no complaints regarding advertising and sales, problems with the product, delivery, or their warranty.  There have also been no significant government actions involving Kolter Signature Homes.

In addition to building the homes and developing these master planned communities, Kolter also has a financial services branch that can help you arrange for your mortgage.  However, as a former Realtor, I always recommend that people also meet with their own banker, as well as an independent mortgage broker, before making a final mortgage decision.  While nothing is wrong with using your builder's mortgage company, it is still a good idea to shop around.

Kolter Communities

Cresswind at Victoria Gardens in DeLand, Florida
This is a 55+ age restricted community.  Visit this community and check out the five decorated model homes.  It is also conveniently located near a medical park.

Fairway Cove at Verandah in Fort Myers, Florida
This master planned development includes golf, nature trails, and convenient facilities for fishing and kayaking.  Homes priced from the mid-200,000's.

Cresswind Myrtle Beach in Myrtle Beach, South Carolina
Live in a Master Planned active adult golf course community that is within an easy bike ride to the ocean.  (The photo of the live oak tree used with this article was taken in the lovely Myrtle Beach area of South Carolina.)

PGA Village Verano in Port St. Lucie, Florida
Do you love the play golf?  This the the ultimate resort style community with 54 holes of PGA championship golf.

Cresswind at Lake Lanier in Gainesville, Georgia
This age restricted over-55 community, which has been previewed separately in this blog, has won more awards than any other adult community near Atlanta, Georgia.  Located on beautiful Lake Lanier, it features both a gorgeous clubhouse as well as a private marina.  Perfect if you want to take your boat with you when you retire!  The homes here start in the low $200,000's.  You can read my separate article on Cresswind at Lake Lanier here.  That article will give you information that applies to the other developments, as well.

You can get more information about these communities through these sources:
http://thekoltergroup.com/kolter-homes/
http://www.cresswind.com/

If you are looking for a place to live after retirement, you may also be interested in checking out the index articles below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of South Carolina live oak tree is courtesy of www.morguefile.com

Be Prepared for Emergencies - It Could Save Your Life

No matter how old or how young you are, are you prepared for an emergency?  In particular, are you prepared for the most likely type of emergency that could happen where you live?  For example, if you live in coastal areas in the southern and eastern states, are you prepared for a hurricane?  If you live in California, are you prepared for an earthquake?  If you live in a heavily forested area, are your prepared for a forest fire?  And, if you live near a river or other waterway, are you prepared for flooding?  If not, you need to take action now.  Your life, and the lives of your loved ones, could depend on it.

Our retirement community has regular emergency drills.  In addition, we also have representatives throughout the community who are willing to go door to door to check on people in the event of an emergency.  These volunteers attend periodic trainings so they know how best to help their neighbors, especially those who are weak or injured.

However, it is also a responsibility for all of us to be as prepared as possible if we should become the victims of a hurricane, flood, tornado, blizzard, earthquake or other disaster. In a widespread emergency, it may take a few days before emergency personnel can find and help everyone who is is injured or displaced.  Our local authorities recommend that everyone be prepared to take care of themselves, if possible, for up to three days.  If you live in an area where you could lose your electricity and be snowed in for a week or more, you may need to make even more extensive preparations. While this may not be necessary for everyone, better safe than sorry.

Covering Your Basic Needs

Experts agree that we should make sure we are prepared to take care of our of certain basic needs, including:  food, shelter, water, light, personal hygiene, medicine, communications, and money. 

How do you prepare?   Take a chest or plastic storage bin and put in some essential supplies such as canned food and a can opener, a radio and flashlight with extra batteries, soap, eating utensils, a solar phone charger, a small amount of cash, a first aid kit, blankets, a change of clothing for each family member, and small quantities of important medications (which you should rotate out every few months).  Inside or next to your storage bin you should also put at least a five gallon container of water or more, depending on the size of your family.  If you have pets, you will also want to include zip lock bags containing their food, as well as enough water to satisfy their needs for a few days.

Next, you need to decide where to keep your storage bin.  Here in Southern California, where the biggest danger is earthquakes, I know of several people who keep their emergency kit in a protected area of their backyard.  They do this in case their home should be so badly damaged that they would be unable to go back inside to retrieve the items they would need.  We keep most of our supplies just inside the door to our garage ... although I must confess that I am not good about keeping everything up-to-date and gathered in one place.  One of my reasons for writing this post is to encourage me to practice what I preach!

I have already purchased a combination flashlight and phone charger for my husband and each of our children for Christmas this year.  I thought it would be a thoughtful gift and could be really helpful to at least one of them in the coming years.

Items You May Wish To Purchase

When you are putting your emergency kit together, there are certain items you may wish to purchase.  In addition to food, clothing, blankets, 5 to 10 gallons of water and your medications, here are some additional items you may need.  If you don't have them on hand, purchase them in advance:

A well-stocked First Aid kit that includes bandages, antibiotic cream and alcohol wipes
A back-up phone charger -- either solar, battery powered or wind-up
A battery powered camp lantern
A battery powered radio that will pick up emergency announcements
A propane stove with extra cartridges
A whistle so you can signal rescuers
Plastic tarp to protect you if you must stay outside in bad weather
Flashlight
Batteries
Metal dishes, cups, eating utensils
A few pots and pans
Dishsoap and moist towelettes
Garbage bags (which can be improvised for use as a toilet in an emergency)
Toilet paper
A wrench or pliers that can be used to turn off utilities.  (Make sure you know how to do this before an emergency occurs.)

You may also want to have items like sleeping bags or a tent stored with your emergency supplies.

Why We Need to be Prepared

As we get older, it is easy to assume that someone will come rescue us if we are in danger.  However, as we saw with Hurricane Katrina and many other disasters, it can take quite a while before our rescuers are able to reach us.  If at all possible, we want to be able to take care of ourselves and not wait to be rescued.  Being prepared could save your life.

If you are retired or thinking about retiring in the future, you may be interested in reading some of the other posts from this blog.  They are all listed and linked in the index articles below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

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

Photo of hurricane damage is courtesy of www.morguefile.com

More People Working After Age 65

Our concept of retirement has changed drastically over the past few years.  In fact, some people don't seem to be retiring at all ... and certainly not at the traditional age of 65.  The local newspaper for our retirement community, "The Laguna Woods Globe," reported this week that by 2019 approximately one in five seniors will be working either full or part-time after the age of 65.  Already, the number of workers in that age group has increased from 4.5 million to 7.5 million in the past ten years, according to the U.S. Bureau of Labor Statistics.  That's a whopping 60% increase in a decade!

Reasons Why Seniors are Working Longer

The article in "The Laguna Woods Globe" listed several reasons for this increase in the number of senior citizens who are still working, and I have added a few more reasons we have heard from some of the retirees we know who still work.

First, many Baby Boomers have not done a good job of retirement planning.  As a result, they are unable to survive on their low Social Security benefits, yet they have no savings to provide additional income.  Their only solution is to keep working as long as they possibly can.  The extra years of work also increases the size of their Social Security payments, so the benefits from working longer can help in several ways.

Second, even when people have saved some money towards their retirement, they may not have expected to enjoy such a long life expectancy after retirement.   When I was young, we were told that the average life expectancy was 72, which meant we only anticipated living a decade or less after we retired.  As I got older, life expectancy increased to 78.  Now that I am in my 60's, I have read that the average life expectancy can be as high as age 88 for people who are healthy at age 65.  That means you may need enough savings to last 25 to 30 years after retirement ... and even more if there is a lot of longevity in your family.  Many people who thought they were prepared for retirement are discovering that they failed to save enough.

Third, a number of companies that used to provide pensions to their employees have reduced or eliminated this benefit.  People who thought they would be able to live off the combination of their pension and Social Security may have much less retirement income than they expected.

Fourth, boredom is another reason for continuing to work past the traditional retirement age.  Some people use this time of life to pursue a career that they always dreamed of ... like becoming a blogger!  Others may continue to work part-time in their former careers, such as becoming a substitute teacher or business consultant. 

Fifth, many Baby Boomers are still healthy and they simply do not want to sit at home.  They would rather work and use the extra money to travel and have fun.  As one person in my local newspaper said, she doesn't need the money, but it sure "comes in handy."

Finally, sometimes seniors are involved in meaningful careers that they do not want to give up.  Many actors and religious leaders, such as the priests in the above picture, continue to work long past the traditional retirement age.  A nun I know is almost 80, yet she still travels all over the world leading spiritual retreats.  I have attended a few of her retreats, and she is still very energetic and a dynamic speaker.  One of the women in my bookclub is married to a physician.  She says he intends to work as long as he possibly can, because he believes that what he is doing contributes to society and he enjoys it.  Isn't that the best reason of all to keep working past age 65?  My own husband is still working, even though he is almost 69.  He really loves his job!

If you plan to work past age 65, I would love to hear the reason you made that decision.  Please feel free to mention it in the comments section of this article.

Meanwhile, if you are doing your retirement planning, you may be interested in reading some of the other articles from this blog.  They are listed alphabetically by topic with links in the the index articles listed below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

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

Photo of elderly priests is courtesy of www.morguefile.com

Source of Statistics:

"Working Late," Laguna Woods Globe by the Orange County Register, August 29, 2013.

Crime Against Senior Citizens

One personality trait that seems to take over when we retire is that we become much more relaxed about a lot of things that used to worry us.  When we become relaxed about how we spend our time, how late we stay up, or our vacation destinations, that is understandable and one of the advantages of being retired. 

However, sometimes people become alarmingly relaxed about their personal and financial security.  If that happens to you, it could put you in danger, as well as your loved ones.  It also could mean that you put at risk everything you have spent your life building.  Unfortunately, there are far too many people who prey on the elderly, taking advantage of their kindness and their trusting nature.  Don't let your retirement be ruined by predators.

Local Crime Against the Elderly

Our gated retirement community, Laguna Woods Village,which is considered one of the safest in the state of California, just released our latest crime statistics.  This data shows that residential burglaries in our town have tripled since 2007 and property crimes are at all-time highs.  Shown below are a few of the statistics listed for our neighborhood.

Between 2007 and 2013:

Burglaries increased from 13 to 20
Residential burglaries increased from 4 to 15
Thefts increased from 70 to 121
Bicycle thefts increased from 2 to 13
Thefts from cars increased from 11 to 24

These are significant increases in crime, especially considering that we live in a secured guard-gated, over-55 community with private security patrolling the streets 24 hours a day.  In addition, a high percentage of our residents are retired and home most of the time.

National Crime Statistics

Unfortunately, what is happening within our community is reflected across the country.  Incidents of crime against the elderly have become a serious national problem, according to a number of sources.  The types of crimes not only include burglary and property crimes, but theft of assets, fraud, physical and financial abuse and assaults.  Here are some of the troubling statistics I discovered:

In 1998, the National Center on Elder Abuse released an estimate that about 1/3 of the cases of elder abuse cases involved financial exploitation of some kind. Indications are that this type of crime has increased since then.

In 2000, the US Senate Special Committee on Aging reported $40 billion in losses to the elderly due to telemarketing fraud.  This number, as well, has certainly increased significantly in the past 13 years.

According to Project America, about 2.5 of every 1000 elderly citizens will experience a physical criminal attack each year.  The specific incidence of various types of physical attacks against the elderly are:

Rape or sexual assault:  0.1 per 1000
Robbery: 0.6 per 1000
Aggravated assault: 0.3 per 1000
Simple assault:  1.5 per 1000
Personal theft: 0.8 per 1000 

According to the website saching.com, every 2.7 minutes an elderly person is victimized in the U.S.  That is a horrifying statistic.

Actions You Can Take to Avoid Being a Victim of a Crime

Our local county sheriff's department published a list of suggestions to help the elderly reduce their chances of becoming crime victims.  While some of these suggestions seem obvious, I know that many residents of our neighborhood have become lax about basic security because they feel so safe living here.  A few suggestions are good reminders:

1.  Keep your doors and windows locked when you go out.  Make sure your locks are in good working order and you may also want to consider installing an alarm system.

2.  Put lights on timers when you are going to be out after dark.  This has the additional advantage of preventing accidents from trips and falls that can occur when you enter a dark house.

3.  Cancel newspapers when you are going to be gone or ask a neighbor to pick up your newspapers and mail.  Because so many people are home during the day in a retirement community, it should be easy to find someone to help you.

4.  If you have a computer, have a computer expert check it from time to time to make sure your firewall and anti-virus protection are the latest versions.  If a stranger calls and says they are trying to fix a virus on your computer, hang up.  Do not follow their instructions.  This is a popular scam that can allow them to trick you into loading a virus onto your computer ... that only the caller can repair!

5.  Do not give out personal information to anyone who calls you.  Your bank and credit card companies already have your account numbers.  Do not give this information out to anyone over the phone, unless you initiated the call in order to make a purchase.

6.  Ask for an I.D. from anyone who comes to your door and claims to be from a utility company or other local business.  If you have any doubts, call the utility company to confirm that they sent the person.

7.  Take pictures of your valuables and keep the photos in a safe place.  In addition, mark your valuables with an identification number, if possible.  This may make it easier to reclaim items that are stolen.

8.  Do not fall for requests for money from people pretending to be relatives.  It is one of the latest scams and, as I have mentioned before in this blog, several people I know have lost thousands of dollars in this way. Confirm, confirm, confirm.  Even if they ask you not to call anyone else in the family, call anyway.

9.  Do not leave valuables in plain view in your car.  Most thefts from cars occur when passersby see a cell phone, purse or other item in your car and they break a window and steal it.  Just a few weeks ago, someone broke several car windows at the stables in our retirement community.  While people were peacefully enjoying a trail ride, their purses were being stolen from their cars!

10.  Do not put your purse or wallet in the trunk of your car while standing in the parking lot of your gym, golf course or other public building.  Thieves hang around these place watching for people to put their valuables in the car trunks.  Then, while you are happily getting some exercise, they pop open your trunk and steal your belongings.  It just takes them seconds.

While some of the items listed above may just seem like good common sense, far too many elderly become lax as they age, especially if they feel they live in a safe area.  This is the time when you should become more vigilant than ever!

If you are retired or planning to retire soon, and you need additional information about how to have the best retirement possible, you may want to check out the blog posts listed in the index articles below.

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Sources:

"Property Crimes Spike in City," Laguna Woods Globe - Orange County Register, August 15, 2013.

http://www.cops.usdoj.gov/Default.asp?Item=1047

http://www.project.org/info.php?recordID=127

http://voices.yahoo.com/rising-crime-rates-against-elderly-seniors-learning-406684.html

http://www.saching.com/Article/Crimes-Against-The-Elderly---Crime-And-Abuse-of-Senior-Citizens/190

Photo of police car is courtesy of www.morguefile.com

Spending Time With the Grandkids

One of the joys of getting older is being able to spend time with your grandchildren.  I drive two of mine to their elementary and middle schools almost every morning during the school year.  The few minutes it takes us to drive from their home to their schools is one of the highlights of my day.  It is always fun to hear about their activities, the books they are reading, their friends, and the tests they are dreading.  If they have a late start day, we might stop at a Starbucks for a hot chocolate before school.  I love the time we spend together in the mornings.

Another granddaughter goes to a college about a one hour drive from our home.  Occasionally she will ask if she can get away from school and spend a night at our house.  This is another wonderful way to spend unstructured time with one of our grandkids.  We usually have dinner together and watch some fun movies on TV.   On several occasions, she has baked us cookies or made similar treats during her visit.

The key to spending quality time with grandkids is to be prepared with some fun ways to entertain them, while remaining spontaneous and flexible.  You'll want to have some supplies on hand to keep the kids busy, even though you may only use these items occasionally.

Preschool Grandkids

Coloring books
Crayons
Construction paper
Simple games
Board books
Snack foods

Elementary Age Children

Craft kits for jewelry making or building things
Watercolors and paper
Jigsaw puzzles
Games
Frisbees and balls
Snack foods

High School and Older Children

Video Games and a Game Player
An assortment of DVD's of fun movies (horror films are often a hit)
Snack foods

Ideas for All Ages

You'll notice that snack foods are on all the lists!  In addition, whenever we see a fun movie on TV that we think some of our grandkids might enjoy, we record it on our DVR.  We especially watch for movies or TV shows that they might not have been able to see.  The latest hit with the grandkids has been the TV movie from the SyFy channel called "Sharknado."  It's totally ridiculous.  However, since we live in Southern California, both our elementary age and our college age grandkids have loved watching all the local landmarks get demolished by sharks!

For more ideas, the newspaper for our retirement community frequently prints out a list of upcoming events and local attractions, along with their prices and hours, so we have ideas of fun places where we can take the grandkids.  Even if your local newspaper doesn't do this, you may want to put together your own list of local places that your grandchildren might enjoy.  Look up the basic information and put it on your list so you are prepared to go on the spur of the moment.  Some items you may want to include:

The nearest zoo
Museums
Science centers
Amusement parks
Water parks
Restaurants with discounts for kids
Discount or dollar movie theaters
Beaches, parks and playgrounds
Swimming pools

With plenty of activities to entertain the grandkids both in your home and in your community, you will never run out of fun ways to keep them happy and busy ... and wanting to come back!

Whether you are currently retired or planning to retire soon, you may also want to check out the articles listed in the five index articles shown below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of children playing is courtesy of www.morguefile.com

Retire to San Miguel de Allende

In the early 1970's, my husband and I took a trip throughout most of Mexico in a Volkswagen Camper.  Yes, we were a lot more adventurous back in those days!  The investment company where my husband was working at the time went bankrupt and I hated my job as a legal secretary.  We sold our surburban home outside of San Franciso, bought the camper and took off for the open road.  It was a fun and illuminating trip.  Although we were in our early 20's at the time, one of the things we noticed was the fact that even four decades ago many Americans were retiring to Mexico. 

Life in San Miguel de Allende

During our trip, one of the places where we stayed was San Miguel de Allende.  We were charmed by this historic town.  If there were American ex-patriots living in the area at the time, however, we didn't meet any.

Today, however, San Miguel de Allende has become a mecca for thousands of retiring Americans.  Located in the state of Guanajuato, it is considered a colonial city with such charming architecture that it was nominated as a World Heritage Site by UNESCO.  It is located about a three hour drive from Mexico City.

Activities in San Miguel

There is something for everyone in this lovely town, including boutique hotels, spas, and a main square that is a hub of lively activity with its carefully trimmed trees and an abundance of benches.  Live music is frequently performed in the town square.  The town also has art galleries, a museum, restaurants, nightclubs, boutiques, and craft shops.  Some of the local products that are for sale include furniture, stained glass, pottery, and metalwork.  In other words, most of the things you will need to furnish your retirement home can be purchased locally.

High temperatures range from about 60 degrees to 68 degrees the year around.  Expect rain in the summer.  

Retirement Info for Mexico

Currently, there are an estimated one million American retirees living in Mexico.  About 15% of them have purchased their residence and the remainder have found inexpensive places to rent.  San Miguel has attracted approximately 12,000 of those retirees with housing available in a variety of price ranges.

Unfortunately, many Americans have begun to feel uncomfortable in recent years about retiring in Mexico because of the increase in violence.   As always, I highly recommend that people who consider moving to another country check the State Department website for advisories and warnings.  In addition, if you do choose to move to another country, it is always wise to move to an area where there are many other Americans.  You are much more likely to feel safe and comfortable in such a location. Even in San Miguel de Allende, however, you should be alert, especially when you are traveling outside the town.

Housing Options

There are a variety of retirement housing options available in San Miguel de Allende.  Many of the developments have  facilities similar to what you would find in U.S. retirement communities, including fitness facilties, swimming pools, play rooms, movie theaters, beauty parlors and more. There are a number of real estate agencies in San Miguel that can help you rent or purchase an appropriate residence in the town.

Another housing option is the Complete Assisted Life Service, which offers specialized health care for those who need it, even if they have a terminal or degenerative disease like Alzheimers.  This is very appealing to those who cannot afford assisted living in the United States and has proven to be a viable option for many seriously ill Americans.  The facilities in San Miguel are built to meet the standards of Continuing Care Retirement Community (CCRC) standards.  In these communities, residents can start out living an active lifestyle that includes golf, swimming and tennis; as their health worsens they will be moved to assisted housing where they can receive specialized care for their illness.  Complete Assisted Life Service facilities in San Miguel have proven to be a life saver for families that cannot afford expensive nursing care for their loved ones in the United States.

Real Estate in San Miguel

It was interesting to me to check out the real estate companies in San Miguel.  Although I cannot suggest a particular one, I highly recommend that people check out several on the internet before choosing one to deal with.  According to the website of the San Miguel Real Estate Agency, not only are retirees moving to their city, but younger American and Canadian adults are also moving there, especially since many of them are now able to work for businesses in their home country via the internet.  I found their website particularly helpful because it was written in English as well as Spanish, and home prices were advertised in dollars.  You will find their website listed in the resources section, below.  Featured homes that they advertised on their website ranged from $139,000 to several million dollars in 2013.  Obviously, buyers get a lot for their money when they are spending millions.  However, even the less expensive homes will give retirees the opportunity to enjoy the pleasant San Miguel lifestyle.

In addition, the various real estate websites advertised an abundant supply of homes and apartments for rent.  To show you the range in choices, I found a one bedroom apartment listed for rent at $500 a month and a number of homes in the $2000 to $2500 a month range.


If you are considering a move to San Miguel de Allende, you will want to check out the resources shown below:

In addition to the websites listed below, if you are going to be traveling to this area, you may also want to order travel guides about San Miguel de Allende from Amazon.com.

Information about the community came from the following websites:

http://www.visitmexico.com/en/retirement-in-san-miguel-de-allende

http://www.cielitolindoassistedliving.com/

http://www.sanmiguelrealestate.com/

If you are considering retiring soon, check out the index articles below.  They contain links to additional information about those topics:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of San Miguel de Allende courtesy of wikimedia.org/commons.

Start a Baby Boomer's Club in Your Community

We Baby Boomers like to stick together.  Although there are many differences among us, we also have had numerous shared experiences over the decades, including our enjoyment of the music of our youth.  As a result, one of the most popular clubs in our homeowner's association is the Baby Boomers Club.

Our retirement community, like most over-55 developments, has a large number of clubs and organizations for the benefit of the residents.  There seems to be something for everyone ... bridge, golf, tennis, writing, paddleboard, swimming, fishing and dancing clubs.  About five years ago, a group of the first Baby Boomers to move into our community started their own club, too, and since its inception it has been a big hit.

Activities of the Baby Boomers Club

The Baby Boomers Club is not one of those organizations where everyone gets together to chat, eat snacks, have political discussions or quilt.  It fact, it is one of the more physically active groups in the community.  All of their gatherings are major social events and are well-attended by both men and women.  Some of the recent activities they have hosted or co-hosted with other clubs are:

Regular Saturday night dances featuring music from the 60's, 70's and 80's.
A Woodstock Festival at one of our clubhouse parking lots
Trips to area attractions, concerts, casinos, etc.
Cruises
Beach parties

Benefits of a Baby Boomers Club

After retirement, many people feel cut off from the work connections they made over the years.  Joining a club is one way to make friends and form new connections.  It is also a way to celebrate life and return to those activities and hobbies that you loved when you were young.

While you may also benefit from taking an art class, bridge lessons, or getting more exercise, joining a group of your peers who enjoy the same music, the same dance styles, and who have similar interests is one way to enjoy reliving your memories and celebrating the life you have lived.

The relaxed, friendly socialization has also had an additional benefit for some members.  A number of couples in our community have met and begun dating as the result of having attended one of the events held by the Baby Boomers Club and other organizations.

If your current retirement community has not already started a Baby Boomers club, this may be a good time to start one yourself.  Baby Boomers are turning 65 at the rate of 10,000 to 11,000 a month.  Many of these new retirees are choosing to move into over-55 communities that have a wide assortment of amenities.  Now is the time for your community to begin welcoming your peers as they move in, and to help them feel they have found the right home!


If you are planning to retire soon, you may also be interested in looking through the links in the index articles below.

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of a sunset wedding is courtesy of morguefile.com

When to Take Your Social Security Early

As most readers of this blog know, I am a big proponent of waiting as long as possible before you begin to take your Social Security benefits.  This is because the longer you wait, the larger your check will be each month.  This has always seemed like an easy, clear-cut decision for me, and I often wondered why intelligent people I knew were choosing to take their benefits early.

Recently, in a conversation with one of my friends, I realized that waiting to take your benefits until you are age 66 or older is not the best business decision for everyone.  In fact, for many people, it can be a much better financial decision to take your benefits early.  If you need to stop working before you reach age 66, it can take ten to twelve years to make up for the money you would lose by going without Social Security for a couple of years.  In fact, as result of this conversation and a meeting I had at the Social Security office, I have actually decided to go ahead and apply for my benefits at age 64.

Reasons to Take Social Security Early

1.  In my situation, my husband has a serious illness which may shorten his life.  Although we hope he will live many more years, if he does die before me I will receive Social Security widow's benefits based on his earnings.  Meanwhile, since I recently retired from a job at age 64, I can go ahead and collect my own benefits now, which will amount to about 42 percent of my husband's Social Security.  We decided together that there was no reason to postpone my benefits for two years, during which time I would have lost over $24,000, since it would take more than a decade for us to make up that amount of money from the slightly increased benefits I would have received by waiting.  In other words, if the family breadwinner is in poor health, it may be wise for the spouse to begin collecting benefits as soon as possible.  If my husband manages to live another 15 or 20 years with his illness, we might regret the decision.  However, that was a risk we were willing to take.

2.  Even if there is no spouse involved, you may be wise to take your Social Security benefits early if you do not expect to live until your late 70's or early 80's.  Many people with a debilitating chronic illness may choose to make this choice.  Although you will receive a smaller payment when you collect early, you could receive the payments for many more years.  According to estimates by the Social Security Administration, a person who begins to collect at age 62 will receive payments that are only about half as large as a person who waits until they are 70 years old.  However, because they will receive benefits for eight additional years, the break-even point will occur in their late 70's.  If your health makes it likely that you will not live until your late 70's, then you may receive more in total earnings by collecting early.  In addition, if you don't need to use all the money in your early 60's and you invest some of it, the break even age may even be older.

3.  Some people may also decide to take their benefits early because of lifestyle choices.  For example, if they want to travel or pursue a second career, taking their benefits early may make it possible for them to pursue their goals while they are still young enough to enjoy the experience.  However, in this case it is important for people to realize that they are making a life-long decision.  Once they are tired of traveling or pursuing the second career, they cannot go back and ask for more money.  This choice is more risky than the ones mentioned above that were based on life expectancy.  If you are healthy and live a long time, you may end up regretting your decision to collect your benefits early, since your income will be so low.

4.  A fourth legitimate reason why some people may choose to take their Social Security benefits early is when unemployment or illness leaves them with no other income options.  In many cases, people are grateful that they have earned these benefits so that they have some source of income when it is no longer possible for them to earn money any other way.  Of course, most financial planners still recommend that people rely on some other source of income, if at all possible, and postpone collecting their Social Security as long as possible.  If they do this, the income they receive later may be even more meaningful.  However, if you have no other choice, you may be grateful that you have the money available.

No matter when you decide to collect your Social Security benefits, between the ages of 62 and 70, you need to do research and talk to representatives in the Social Security office before making a final decision.  Everyone's situation is different.  Do not base your decision on what your friends are doing.  Finally, despite the reasons I gave above for collecting early, if you can postpone collecting for a few years, it is still the best decision for many people.

Source:

http://www.dailyfinance.com/2013/04/07/taking-social-security-early-isnt-as-dumb-as-many/

If you are planning your retirement, you may also want to check out the index articles below.  Each of them contains links to a variety of articles on that topic:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Copy of old Social Security card courtesy of www.en.wikipedia.org/commons

Have a Better Cruise Experience

Going on a cruise is one of my favorite vacation experiences and apparently this is also true for many other Americans, especially retirees.  I love being able to visit multiple locations without having to arrange for transportation from city to city.  I also enjoy the freedom from constantly packing my luggage and moving to a new hotel every few days.

While I already consider cruising one of the easiest forms of travel, I also have a few tips that may make it an even more practical travel choice.  While you may not want to try all these things, pick out a few and see if they make your next cruise even more pleasurable:

Tips for a Better Cruise

Limit your luggage.  I usually take far too much clothing on my cruises.  Depending on whether you are going to a tropical location or cruising near Alaska or North Europe, you should be able to get by with just a few color-coordinated outfits that work well if you mix and match them.  Throw in one dressy outfit.  A knit "little black dress" is practical and it won't wrinkle easily.   You can change the look with a dressy jacket, jewelry or scarves. Your room will be more comfortable if you don't overpack and you  may not have to wait to have your luggage delivered to your room if you are able to just carry your bag on board by yourself.

Don't overspend on cruise extras.  For example, your regular dinner table will serve fabulous meals every evening.  Do you really want to spend extra money to go to a specialty restaurant on the ship?  You may also want to steer clear of the gift shops.  Often they carry the same lines of high priced souvenirs that are for sale in upscale hotel gift shops everywhere.  Unless you forgot to pack a swimsuit or you really want a sweatshirt with the name of your cruise line printed on it, you can probably skip most of the items in the gift shops.

Don't spend all your days in port taking excursions. Instead, spend some time exploring the ports on your own, especially if you can rent a car or take a cab and get away from the tourist sites that are clustered near the port. One of the delights of traveling to new locations is getting to experience new adventures.  If you are cruising in Hawaii, for example, you may want to visit the erupting volcano on the Big Island and tour the Pearl Harbor Memorial on Oahu, and it may be easiest to see these attractions if you sign up for a tour.  However, you do not want to spend all your time and money on excursions.  You can happily wander around many of the port towns on your own.  When we have traveled in Hawaii, the Caribbean, Alaska and Europe, whether we were on a cruise or not, my family and I enjoyed getting away from the tourist attractions and exploring the towns on our own.  We signed up for a few excursions and tours, but we always left ourselves plenty of free time, too.

Eat right and get exercise.  While you are on your cruise, it is easy to eat all day long.  Food is available almost everywhere!  However, if you sit around on deck chairs, eating and drinking all day, you will start to feel sluggish after a few days.  Take advantage of the fitness facilities.  I enjoyed taking a yoga class and my husband competed in a golf tournament on one of our cruises.  Rather than going to the breakfast buffet, where we knew we would be tempted to overeat, we asked to have a bowl of fruit, tea, coffee and oatmeal delivered to our cabin each morning.  We also tried to eat a reasonable lunch.  After being good during the day, the generous five course dinners we enjoyed each evening were a luxury that we could consume with less guilt.

Don't forget to enjoy all the on-board opportunities to do something new.  The cruise social director has usually planned lots of fun activities for your enjoyment.  Take a dance class, enter a talent competition, learn a few new casino games, and watch the world-class entertainers.  There are always exciting activities going on aboard a ship.  Have fun and participate.  You might not have the chance to see or do some of these things again.

For more helpful tips, you may also want to read my recent blog post:   Is It Safe to Cruise on Your Next Vacation?

If you are retired are approaching retirement, you may also want to check out the index articles below.  Each one contains links to a number of articles on that topic:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

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

Photo of cruise ship courtesy of morguefile.com

Explore the Ed Slott Retirement Rescue Plan

On several occasions in this blog I have mentioned the fact that many Baby Boomers are not prepared for retirement.  I frequently encourage people to postpone their retirement as long as possible in order to maximize their Social Security.  I have also given suggestions to help readers find a fun retirement job.  However, for most people these actions will need to be supplemented with at least some retirement savings.  This reality may be discouraging to those of you who know that you have not done enough financial planning.  Fortunately, for most of us it is not too late to turn things around, protect our assets, and have a more financially secure retirement.  With just a little information and a few simple steps, you can get started on the road to a better retirement.

Ed Slott is a highly respected investment advisor, CPA and IRA specialist who was recently featured on PBS in a program called "Retirement Rescue."  In this televised program, he outlined what people should be doing in order to have a financially secure financial plan for retirement.  Listed below are some of the suggestions he has, as well as a link to Ed Slott's books from Amazon.  It wouldn't be fair to review his ideas without giving you an opportunity to buy his books directly, so he can profit if you decide to use some of his advice.

Avoid Taxes

No matter how much or how little you have saved towards retirement, you want to make sure you get to keep as much of it as possible.  Ed Slott recommends that you make a plan to minimize the taxes you will pay after retirement.  You don't want to give the government any more money than necessary.

Move you money from accounts that are taxed to accounts that will not be taxed.  Yes, it really is possible!  In fact, I've made this same suggestion in my blog in the past.  My husband and I recently moved our investments from a traditional IRA to a Roth IRA.  We paid taxes on the value of the investments we currently have in the account.  However, the investments we have can now grow and, when we withdraw the money in our 70's, we will not have to pay income taxes on our withdrawals.  In other words, we paid taxes on our retirement assets now so we won't have to pay taxes on them later ... which is exactly what Ed Slott recommends.  There is a waiting period before we can can begin to withdraw the profit on our retirement savings, but it is worth it to us.

Another advantage of the Roth IRA is that we will not have to begin withdrawing the money as soon as we turn 70 1/2.  Our money can continue to grow tax free until we want to withdraw it.  There are no mandatory withdrawal rules.

Mr. Slott also says that another way to reduce your taxes is by purchasing permanent life insurance.  There is a federal tax exemption for the proceeds of a life insurance policy.  This is a major benefit for your dependents, and can be particularly helpful for a spouse who is left behind when the breadwinner dies.  Mr. Slott believes that permanent life insurance is an investment.  The money that is paid in premiums grows tax free and you can tap into the value, while you are still alive, if you need the funds to help fund your retirement.  Whatever is left becomes cash to help support your dependents.  If you decide to buy life insurance for this purpose, make sure you are buying permanent life insurance that builds a cash value.  It costs more, but it can benefit both you and your heirs later on.  Since I am no insurance expert, you may want to read one of Mr. Slott's books in order to be certain your fully understand this option.

Minimize Your Investment Risk

Mr. Slott also believes that the majority of people should not rely on the stock market for their investments.  It is much too volatile and unpredictable for people who are retired or near retirement age.  He points out that far too many people lost a substantial amount of their retirement savings in the last stock market decline.  Consequently, he recommends that people put some of their money into annuities that will give them a guaranteed stream of income for the rest of their life.

One suggestion he has that intrigued me is to buy annuities in a Roth IRA.  This will provide a guaranteed income stream that is tax free!  He also points out that it is important that you use a reliable, well-known annuity company and respected money managers when you choose an annuity.

I have to note that annuities are one area that is controversial.  Some retirement specialists believe in annuities and others strongly believe that they are a bad idea and that you can do better if you invest your money conservatively in dividend paying stocks, government bonds or similar investment products.  You will want to consult your own investment adviser (or perhaps several) before making a final decision on which investment instrument is the best way to provide you with supplemental retirement income.  Some advisers recommend finding funds that pay dividends and also allow your principle to grow. 

A Better Approach to Saving Money

We all like to save money and this desire may cause some people to be reluctant to spend money on their retirement planning.  However, now is the time to spend the necessary money needed to invest in your retirement.  Pay taxes now; buy life insurance; buy annuities or invest your money in funds.  According to Mr. Slott, it is important to spend some money now, so that you can have a much larger retirement income later.

Reduce Uncertainty

We all want to avoid uncertainty about our future financial security.  Ed Slott points out that following his program will reduce or eliminate the amount of insecurity and uncertainty you will have about your financial future.  If you follow his recommendations exactly, it is true that you will have avoided uncertainly by avoiding taxes and buying annuities.  You will know exactly how much your assets are worth and how much income you will have.  This is why he says you can rescue your retirement by simply following his suggestions.

Avoid Inactivity

Finally, Ed Slott also says that one of the worst killers of retirement planning is inactivity.  If you don't take any of these steps to protect your assets and rescue your retirement, the inactivity could result in disaster.  The sooner you begin to take at least some of the steps mentioned above, the better your results will be.  No matter how old or young you are, everyone should sit down and make a plan that will maximize the amount of retirement income they will have after they retire.

Where to Get More Information

You will almost certainly want to get more specific information on how to follow this investment program if you decide to give it a try.  If so, you can use this link to order Ed Slott's Retirement Rescue books from Amazon.

Obviously, I cannot include all of the details of his plan in this blog post ... and it wouldn't be fair to Mr. Slott if I did.  However, I have found his advice to be so thoughtful and helpful that I wanted to be sure that my followers knew about it.  The whole goal of this blog is to make sure that as many people as possible have a satisfying, comfortable and fun retirement.  Financial insecurity will go a long way towards making sure that happens.

In addition, you may want to get information on other retirement issues by checking out the index articles below.  Each one contains links to a number of related articles on that topic:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of Ed Slot courtesy of www.en.wikipedia.org/commons

Colonial Heritage near Historic Williamsburg, Virginia

Do you love history, yet you want to live in a modern retirement community with lots of popular amenities such as golf, swimming pools, a clubhouse and exercise facilities?  If so, you should consider moving to the charming Colonial Heritage over-55 retirement community by Lennar Homes near historic Williamsburg, Virginia.  It's the perfect spot for people who enjoy both early American history as well as the comforts of modern America.

Whether you are interested in volunteering as a docent in Colonial Williamsburg, or you want to spend your days playing golf, working with wood or enjoying other community activities, this is a wonderful place to retire.

Facts about Retiring in Virginia

Before you decide on a retirement community, of course, you need to decide if retiring in Virginia is the right choice for you.  One of the appeals of Virginia is that home prices and the overall cost of living is reasonable as soon as you get away from the Washington, DC area.  One of our daughters went to college in Virginia and, when we visited her, we fell in love with the charming small towns, quaint farms, and the drive along the Blue Ridge mountains.  The entire state only had a population of about 8 million people in 2012.

If Social Security is going to be your primary source of income after retirement, there is another reason why you might love living in Virginia.  Your Social Security benefits are exempt from income taxes.  In addition, the real estate websites tout the fact that there are no state inheritance taxes.

Williamsburg, Virginia

 According to Money Magazine, Williamsburg is Number Five on their list of the "Best Places to Live". 

In additional to the interesting attractions in the township of Colonial Williamsburg, the city has two hospitals ... important for residents who are planning to age in the area.  Both the Norfolk and Richmond airports are less than an hour drive away.

The weather in the mid-Atlantic states is more temperate than you'll find in the Northeast.  The average high temperature in July is 89 degrees, and the average January low is 28 degrees.  Thunderstorms are common, with July being the wettest month of the year.  We have experienced a few Virginia thunderstorms, and they are quite dramatic, so be prepared!

Residents of Williamsburg are also a short drive away from the Virginia coast.

Amenities at the Colonial Heritage Retirement Community

Once you have decided that living in the Williamsburg, Virginia area is the right choice for you, you need to decide whether you would prefer to live in the town or in a nearby master planned community.  While the town has a lot to offer, here is a list of the amenities available in the lovely Colonial Heritage retirement community.

Over-55 gated community
Elegant clubhouse
18 hole championship golf course
Tennis courts
Indoor pool with floor to ceiling windows
Outdoor resort style pool
Ballroom
Two community restaurants
Meeting rooms, card rooms and a billiards room
Fitness room / Athletics center
Arts and crafts room
Woodworking shop
A variety of community organizations including the history and culinary clubs.

Homes and Home Prices

Lennar Homes, a respected national home builder, is the developer of Colonial Heritage.  They are actively in the process of building a neighorhood of charming low-maintenance homes on 1500 acres.

In 2013, home prices in the community ranged from about $260,000 to $460,000 for a single family home.

Homeowner's dues in 2013: $258 a month.

Contact Information

Colonial Heritage
7015 Statesman
Williamsburg, Virginia 23188
(877) 785-3662

ColonialHeritageVA.com

More Information:

If you are interested in learning more about historic Colonial Williamsburg, you may be interested in reading one of these books from Amazon:

Insider's Guide to Williamsburg 16th: and Virginia's Historic Triangle

Official Guide to Colonial Williamsburg

Resources:

"50 Best Master-Planned Communities in the U.S." Where to Retire Magazine, July/August 2013.

http://www.colonialheritageclub.org/home.asp

 http://www.topretirements.com/state/virginia.html

If you are currently planning your retirement, you may also want to look through the index articles below.  Each one contains links to a variety of additional resources.

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

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

Photo of Colonial Williamsburg courtesy of www.en.wikipendia.org/commons

Golf Carts vs Golf Cars for Retirees

According to Federal Highway Administration estimates, in 2009 Americans drove over 65 million miles while using almost 70,000 golf cars and golf carts on public roads and streets. This is the only year in which the federal government tracked these types of vehicles.  However, the information they gathered is quite interesting and shows how popular these vehicles are becoming across the United States.  Although they appeal to people in all age groups, retirees are finding the vehicles to be especially useful.  In fact, it is estimated that nearly one-half of the golf car and golf cart drivers in the U.S. are age 65 or older.

Why Golf Carts and Cars are Gaining in Popularity

There are a number of reasons why people are finding these vehicles appealing:

1.  Most of the golf cars and carts that you see today are battery powered electric vehicles. This makes them very economical to drive.

2.  With prices ranging from $2,500 for a used golf cart, up to $25,000 for a fancy, custom one,  and as much as $32,500 for a Think car, many people find that they are more affordable than keeping a traditional car.  Federal tax credits of up to $2,500 have also made the vehicles even more affordable.

3.  In many places, these cars and carts can be driven on the street, and they are easier to park than the average automobile.  In fact, the American Custom Golfcars company estimates that 85% of the vehicles their company manufacturers will never be seen on a golf course!

4.  Some locations are particularly golf cart friendly, such as the islands in Newport Bay, here in Southern California, or a number of small towns and master planned communities across the United States, especially golf course and over-55 communities.

5.  In some neighborhoods, retirees who have lost their driver's license can continue to legally get around their community while using a golf car or cart.

6.  The Think Car promotes itself as the car that requires about as much attention as a mobile phone.  Plug it in and it is ready to go in the morning.

7.  Both golf cars and carts are quiet and clean ... perfect for people who are concerned about the environment.

However, before you purchase one of these vehicles and decide to hit the roads in it, you will want to know about the different laws that govern each of these types of vehicles ... especially the laws in your area.  The laws can be very confusing, so be sure to check the rules in all the local jurisdictions where you will be driving.  Listed below are some of the rules that apply here in Southern California.  You will see that regulations can vary from town to town, even in communities that are only a few miles away from each other.

Golf Cart Rules

The California Department of Motor Vehicles does not require that golf carts be registered if they are only used within a mile of your home.   Brake lights and turn signals are not required, although it is highly recommended that you have a street ready vehicle if you are planning to primarily drive it on public roads.

However, it is important to note that, according to California state law, golf carts may only be driven on roads with a speed limit of 25 m.p.h. or less.  This eliminates many thoroughfares within the state.

City rules may override the state laws.  For example, in the town of Newport Beach, both golf cart and golf car drivers must have a driver's license if the vehicles are driven on public roads. 

On the other hand, in the nearby town of Laguna Woods, where the vehicles are primarily driven on private roads and trails, drivers are not required to have a driver's license.  In fact, Laguna Woods has plans to expand the number of golf cart trails that are currently available to make the area even more accessible to these vehicles.

Golf Car Rules

The California Department of Motor Vehicles does require that golf cars be registered.  These low speed vehicles are also expected to have some of the street ready safety features common in regular cars, such as brake lights and turn signals.

According to California state law, golf cars (which are also referred to as neighborhood electric vehicles or low-speed vehicles), are limited to roads with a posted speed limit of 35 m.p.h. 

The Think car is able to go up to 70 mph, so it may be allowed on roads with a higher speed limit.  You should check with local authorities to see what rules apply to you.

Golf Car vs Golf Cart

What is the difference between a golf car and cart?  Golf carts are typically open on the sides (although special covers can be purchased) and they are what most of us are accustomed to seeing on the golf course.  By comparison, the most common type of golf car is the Ford Think.  I have seen some of these on Balboa Island, in Newport Bay, where I frequently like to take walks.  Although they look like miniature cars and are fully enclosed with side doors, they can be smaller than some golf carts.

Golf carts tend to be less expensive than golf cars.  However, they are not as protective in cold or rainy weather.  In addition, in California and some other states, they can only be legally driven on roads with a speed limit of 25 m.p.h. or less.  Golf cars are slightly more protective and can be legally driven a bit faster.  The type of vehicle that is best for you may depend on the climate where you live, the speed limit in your neighborhood, whether you plan to primarily use it on the golf course or on public streets, and local regulations regulating the use of these vehicles.

Whichever type of vehicle you have, it is reassuring to know that in many places these vehicles will allow you to continue to stay mobile within your own neighborhood, even after it is no longer possible for you to hold a driver's license or drive long distances.  For many seniors, this is the best reason of all to own one!

Source:

"Golf Car Drivers Take to the Streets," Laguna Woods Globe - OC Register.  Tuesday, August 1, 2013.

http://www.thinkev-usa.com/

If you are getting ready to retire, you may also want to check out the index articles listed below.  Each one contains links to additional articles on the mentioned topic.

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement


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

Photo of golf carts courtesy of www.morguefile.com

How to Collect Social Security and Retire Overseas

If you are thinking about retiring to another country, one of your concerns may be how to get Social Security overseas.  First, I want to assure you that it is possible to receive your benefits and that many Americans around the world are living comfortable lives on their American Social Security benefits.  However, you will want to check everything out carefully to avoid any unnecessary complications before you make the commitment to move to another country.

Key Points to Know About Collecting Social Security Abroad

The Social Security Administration will provide you with their Publication No. 05-10137 entitled "Your Payments While You Are Outside the United States."  You can get it on the Social Security Administration website at www.ssa.gov.  I suggest you read it carefully and I am not going to attempt to rewrite the entire brochure in this post.  However, here are some of the key points you will need to know:

You can get your benefits in nearly any other country, although there may be special procedures you will have to follow.  For example, if you are in certain countries you will have to go to the U.S. Embassy or consulate to pick up your checks.

Currently, you cannot receive payments if you move to Cuba, North Korea, Cambodia, Vietnam or some of the countries that make up the former Soviet Union.

Retirees who move to Armenia, Estonia, Latvia, Lithuania and Russia can receive their checks, but they fall into the category of places where you will need to pick up your checks at an embassy or consulate office.

The list of countries that have these restrictions changes from time to time.  You can always get the most curent information on the Social Security website.  If you are moving to a location that has had a checkered relationship with the U.S. government, you will want to contact your local Social Security office and investigate how you will receive your benefits before you make the move.

If you move to another country and get dual citizenship in that country, while retaining your U.S. citizenship, you can continue to collect your benefits.  There is also a long list of countries on the site where you can become a citizen of that country alone and still receive your U.S. benefits; examples that fall into this category are Austria, Canada, France, Israel, Japan, South Korea and the United Kingdom.  If you are considering becoming a citizen of another country and dropping your U.S. citizenship, you will want to check the Social Security website first to make sure the country where you will be living is on the approved list.

Survivor and Dependent Benefits

If you are receiving your Social Security benefits as a dependent or you are getting widow's survivor benefits, it is possible that you will not be able to continue to collect those benefits if you continue to live overseas after the primary beneficiary dies.  There are special requirements that you will need to meet and you should check with the Social Security office to make sure you meet these requirements.

Direct Deposits vs. Checks

While you are living in another country, you can arrange to have your payments deposited in a bank in the United States or in the country where you are now living.  There are advantages to having direct deposits that go into a U.S. dollar account, since you can avoid currency conversion and other fees.

Income Taxes on Your Benefits

Your benefits are subject to the same taxes you would have to pay if you lived in the United States.  The amount of taxes you will pay depends on the amount of other income you have.  If you are living on Social Security alone, you will probably not owe any taxes on your income.  If you have tax free income, such as distributions from a Roth IRA, you will probably not have to pay.  However, if you are receiving distributions from a traditional IRA or income from other taxable sources, your benefits could be subject to Federal income tax laws.

In general, Social Security benefits from the United States are tax free in many other countries as long as we have a tax treaty with that country.  If you live in a country without a tax treaty, your benefits might be taxed by that government.  In addition, if you have become a citizen of another country, you may be expected to pay taxes to the government of that country.  You will want to investigate the tax consequences of any move to another country.

Reporting Requirements

When you live in another country and collect your U.S. benefits, you need to keep the Social Security Administration informed of changes in your family status such as a marriage, adoption of a child, a child who becomes 18,  a child who is or becomes disabled, an annulment or divorce, a change of address, and similar events that could affect your eligibility or the eligibility of your dependents.  The SSA will send you a questionnaire periodically.  However, if there are changes, you should not wait until the next questionnaire to report them.

Medicare

You will not be covered by Medicare in another country.  If you do choose to sign up for Medicare, it will only provide you with coverage when you are in the U.S.  However, you may still want to sign up while you are living abroad because your premiums will go up by 10% a year for each year you remained out of the U.S. and were not enrolled.  If you come back to the U.S. in your later years, your Medicare premiums will be substantially higher if you have not been paying them all along.  The decision is up to you, but it is something you should consider when you turn 65.

It is not unusual for people to decide to go ahead and have their Medicare premiums deducted from their Social Security checks and, in addition, buy an insurance policy in the new country where they are living.  In many cases, medical insurance is quite inexpensive in other countries.  In this way, the retirees are covered in their new country and they have basic Medicare coverage when they are visiting family in the U.S.  They also will be able to keep the lowest Medicare premiums if they choose to return to the U.S. permanently.

If you are currently making retirement plans, you may also want to read other posts from this blog.  They are listed and linked in the index articles below:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Retirement

Resources:

http://voices.yahoo.com/what-social-security-benefits-if-retire-1567559.html

http://www.ssa.gov

Social Security Administration Publication No. 05-10137 "Your Payments While You Are Outside the United States"

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Photo of sample Social Security card is courtesy of wikimedia.org/commons.