Retirement Confidence at Rock Bottom - Working Longer Seen as Solution

March 20, 2010 — According to a new study from the Employee Benefit Research Institute (EBRI), worker confidence about their retirement has hit rock bottom. The 2010 Retirement Confidence Study found that the percentage of workers who are very confident about having enough money for a comfortable retirement has stabilized at 16 percent, statistically equivalent to the record low 13% reported in 2009. Among workers who are already retired, the confidence index is slightly better at 19%.

These numbers paint a very discouraging picture about retirement - only 1 in 5 retirees predict they will have a financially secure retirement. And current workers feel even less confident. Unfortunately, the EBRI study turned up bad news about other aspects of retirement confidence. For example, only 29% of workers believe they will have enough money to cover basic expenses in retirement. Only 19% of retirees say they are very confident about having saved enough money to live comfortably in retirement.

When it comes to savings, it’s clear that most Americans have done a terrible job of preparing for retirement. Fully 27% of American workers have no significant retirement savings (less than $1000 and excluding the value of their residence), the same percentage of retirees who have no savings accumulated. Only 60% of workers are currently saving for retirement. More than half (54%) of workers have less than $25,000 in savings. Only 12% of retirees have saved more than $250,000. Less than half have even tried to calculate how much they need to save for retirement (which, by the way, is a LOT more than $25,000). Of those who have tried to calculate what they need for a comfortable retirement, 54% say that they need at least $500,000.

Obviously, if one is unemployed, one can’t be saving money. On the other hand, it is unclear what the people who are working but not saving anything expect to retire on. The facts of retirement in this century are not encouraging. For most people the idea of a pension has disappeared - today only government workers and the rare employee in a private company can count on a monthly pension check in retirement. So for most people, social security payments will help pay for basic expenses, and savings will have to pay for anything extra. Those extra expenses might include travel, transportation, and gifts - but they might also include much higher medical insurance costs than most people have predicted.

The Solution - Working Longer
In 1991 the EBRI found that 11% of Americans expected to work past the age of 65. In the subsequent years that percentage has continued to climb, it has tripled to 33% in 2010.

We apologize for painting such a bleak picture, even if it is the stark reality of retirement today. But there is a solution - working longer. In future articles we will report on studies from the EBRI and the Boston College Center for Retirement Research which predict that most retirees will have to tap into their home equity via a reverse mortgage in order to survive.

For further reference
The full 2010 Retirement Confidence Report

What do you think?
We look forward to your comments, suggestions, and input using the Comments section below.

Best States to Die In (but it’s not a good year to do it anywhere)

March 15, 2010 — Notes: First,this article was prompted by an excellent suggestion from one of our visitors, Gerry. Second, it is really about the worst states to die in, but we didn’t want to have a negative headline. It will be easy for you to figure out the best states to die in - they are the ones NOT mentioned in this article.

It’s not the cheeriest topic, but what critics call the “death tax” is on the minds of many people. The Economic Growth and Tax Relief Reconciliation Act of 2001 set up lower estate tax rates and higher exemptions through 2009, and then repealed the estate tax in 2010. Now that we are in 2010, the federal estate tax laws are in a murky state. If Congress doesn’t act, people who die in 2010 might not have to pay any estate tax, unless a law is passed this year or retroactively in the future. With no congressional action 2011 will be a worse year to die, since the exemption will revert from $3.5 million to what it was in 2002 ($1 million) and the tax rate will climb back to what is was in 2001 (55%).

Most experts expected that by now the Congress would have enacted a law specifying what the estate exemption would be. Thanks to the ongoing health care log jam, it appears that Congress is miles away from taking up other business.

A complex subject
Let’s start by saying that estate and inheritance taxes are a complex subject, one where you should have a competent professional helping you. If your estate is worth less than $1 million, at least you don’t have to worry about that problem - your estate will not be taxed under current laws. Some definitions - an “estate tax” is levied on the net value of what you are worth when you die, an “inheritance tax” is levied on your heirs from what what they collect from the estate. The estate tax is more common. Your spouse will not pay inheritance taxes from your estate, but your children and other heirs might in some states.

State laws change quickly so it is important, particularly if your estate will be large, to look into your state’s laws carefully. One of the further complications relates back to the federal exemption problem we discussed above. Many states had their estate taxes pegged to the federal law. But faced with the prospect of declining revenues, many have since “decoupled” their laws from the federal, allowing them to ignore the federal exemptions that steadily climbed through 2009. Other states have changed their laws so they can set their estate and inheritance taxes and exemptions independently. According to an article about state estate taxes at About.com, 14 states and the District of Columbia collect estate taxes in 2010:

Connecticut
Delaware
District of Columbia
Maine
Maryland
Massachusetts
Minnesota
New Jersey
New York
Ohio
Oregon
Rhode Island
Tennessee
Vermont
Washington

Inheritance Taxes
There are currently 7 states that collect inheritance taxes (Maryland and New Jersey levy both estate and inheritance taxes!):

Indiana
Iowa
Kentucky
Nebraska
Maryland
New Jersey
Pennsylvania

What does all this mean to you?
If your estate will be worth more than $1 million and you are very concerned about these taxes you might consider moving to one of the states not listed above. A state without an income or inheritance tax will let more of your hard-earned money reach your heirs. However, as one savvy estate attorney advised us, choosing a place to live based on tax policy is a case of the tail wagging the dog. Better to choose the place you want to live in first, then if all things are equal, you could tilt to the low-tax state. Of course, before you make any decisions you should consult a competent estate attorney and/or accountant.

The other issue arising from this discussion points out the dis-functionality of our Congress in 2010. We rely on the government to set laws so that we can follow them. But this year millions of citizens have no idea what the estate laws will be this year or next. As a result they are having to make complex decisions that involve significant dollars without knowing the law. Some experts predict that Congress will pass exemptions similar to what they were in 2009 ($3.5 million), with a worse case prediction of a $1 million exemption (The House has passed a bill with the $3.5 exemption, but the Senate has not acted). Some predict that the eventual law will be retroactive, covering estates of people who died in 2010. If a law is passed reinstating the estate tax with a $1 million exemption and a 55% tax rate, 2010 could be a very bad year to die for people whose estates are worth more than $1 million. Take this overly simplistic and hypothetical example to see why: You die in 2010 and your estate has a net worth of $3 million. Subtract your $1 mill. exemption, so $2 million is taxable. If the tax rate is 55%, $1,100,000 will be paid in federal taxes by your estate, plus any applicable state estate and/or inheritance taxes. For a more detailed discussion see the AARP Estate Tax Calculator.

For further reference:
7 States to Avoid
Most Tax-Friendly States
What do you think?
Please use the comments section below to give us your input on this subject.

Worst Retirement Mistakes to Avoid

We’ve posted a new article in our Tips and Picks section on the “Worst mistakes you can make in retirement”. Our hope is that you can examine them vs. your own situation and at least avoid the most serious of them.

Post your worst retirement mistakes here. And better yet, use the comments section below to share your best retirement planning success tips!

What You Need to Know When the HOA Takes Over from the Developer

This article is Part 3 in our series about Home Owners Associations (HOA’s). Part 1 was called “Meet the New Boss - Your HOA“, and Part 2 was “What You Need to Know about Your Home Owners Association“. We are grateful to Joe West, CEO of the Community Associations Network, for his assistance in preparing these articles.

As if Home Owners Associations (also called Community Associations) and condo associations didn’t have enough issues to deal with, at some point in their lives also have one colossally important matter to work on. That would be the handling of the community’s transition from Developer run to HOA managed. How that process is handled will impact the community for years and years to come.

We talked with Joe West about some of the issues to be aware of in the transition. Here is a summary of his responses:

TR: Many communities take over primary responsibility for the management of a development, presumably when all of the units are developed or and sold – correct?
Joe West: The transition from developer controlled HOA or community association is governed by documents developed by the developer. It can vary from state to state, there is nothing universal controlling. Usually it revolves around a target percentage of the units being sold.

TR: What should the association do to manage the process successfully?
Joe West: It is critically important to be smart about this transition. The first thing the association needs to do is to hire a competent attorney and an auditor who have experience in this field. This will cost money, but you have to do it.

The board and your advisors need to find out if the developer did everything they were supposed to do under the documents and state law, and didn’t do things they weren’t supposed to do
1. Violations. In many cases you will find the developer allowed violations of their own documents (precedents). I saw one developer who violated every rule on the books, including allowing two owners to build a volleyball court on the common area, which also happened to be protected wetlands. The association needs to get those issues under control fast.
2. A good audit is needed. More times than should happen, funds have been comingled and the books are not up to snuff. You have to make sure that money residents paid in for assessments didn’t go to pay for items the developer should have paid for themselves. Sometimes it is just that the developer used his trucks to plow snow and paid himself, but you need to make sure everything is documented and on the up and up. An association needs to start off on a sound financial basis.
3. Reserves. You need a professional reserve study to tell you the condition of the property’s common areas like roads and clubhouses and provide you with a plan on how you’re are going to handle the repair and replacement of these items in the future.
4. Get organized. This is so critical it’s not even funny, getting things going the right way at the beginning. Your board has to get started on the right foot, with competent people in critical positions. If there are outstanding issues, work on them right away. If you let things slide there will be nothing but hard feelings when you have to enforce them later. We often see an initial board that is passive, then an active association board comes in and cleans things up - that often leads to court troubles that could have been avoided. Errors are hard to undo, so be brave and do it right the first time.
5. Set up effective communication from the start. Effective communication and transparency with your residents is key. Get your newsletters, website, and other communication active early on. Try to keep your communications upbeat, simple and frequent. Don’t put out a newsletter that is basically a list of “Don’t do this” items

TR: How do you assess the condition and performance of most HOAs?
Joe West: Most HOAs and condo associations I see are doing a good job. You don’t hear about them because they are quietly running well - they have competent, hard-working officers who attend to their responsibilities, often with good management and other professionals (attorney, CPA, reserve analyst). Leadership is the key to success. Elect good people and you get a good association, one that’s a nice place to live – elect not-so-good people, and you get problems. Of course many associations are being hurt by delinquencies and foreclosures of their residents. They are having a hard time right now, cutting or postponing major repairs because revenue is tight, but that’s happening for people who don’t live in an association also. The key here is that if you’re looking at moving into an association, pay real close attention to their financial condition

TR: How can associations find advisors and other help.
Joe West: Organizations like ours (Community Association Network), Community Associations Institute, and HOA Talk.com are good places to start. There are several law firms in F and CA that put out great newsletters you can sign up for online. Online classes for board members are also a great idea.

TR: What is another problem you see with ineffective associations?
Joe West: Apathy is a major problem in many associations. Associations are most successful when the owners take an active interest in what’s going on and who they elect to govern their community. It doesn’t take a whole lot of time, even if you serve on the board, but it is especially important when the association is new and transitioning to owner control.

Thanks Joe, I am sure that our readers will find this very helpful!

You’re Retired in Your New Home - But Are You Safe from Fire?

You are finallly retired, you’ve chosen a great community, and now you are living in your new home - whew! But before you relax completely, make sure you get to enjoy your new lifestyle for a long time by taking some basic safety precautions. Every year, more than 3,000 people die in home fires in the United States; most of whom are in homes without a working smoke alarm. To prevent these deaths, the U.S. Fire Administration (USFA), a division of the Federal Emergency Management Agency (FEMA) is sponsoring a nationwide Install. Inspect. Protect. Campaign designed to raise awareness about how working, properly installed smoke alarms can lower a person’s chances of dying in a fire.

The USFA’s Install. Inspect. Protect. Campaign is aimed at encouraging Americans to practice fire safety by 1) installing and maintaining smoke alarms and residential fire sprinklers, which can help save the lives of residents and fire fighters, 2) practicing fire escape plans, and 3) performing a home safety walk-through to remove fire hazards from the home. Install. Inspect. Protect. also recognizes firefighters and stresses the fact that the children of firefighters want their fathers and mothers to come home safely.

When both smoke alarms and fire sprinklers are present in a home, the risk of dying in a fire is reduced by 82 percent, when compared to a residence without either. According to the National Fire Protection Association, between 2003-2006, almost two-thirds of home fire deaths resulted from fires in homes with no smoke alarms or no working smoke alarms.

The USFA offers a few helpful tips on smoke alarms and sprinklers:
o Place properly installed and maintained smoke alarms both inside and outside of sleeping areas and on every level of your home.
o Get smoke alarms that can sound fast. The U.S. Fire Administration recommends that every residence and place where people sleep be equipped with both ionization and photoelectric smoke alarms or dual sensor smoke alarms, which contain both ionization and photoelectric smoke sensors.
o Test smoke alarms monthly and change alkaline batteries at least once every year, or as instructed. You can use a date you already know, like your birthday or when you change your clocks as a reminder.
o If possible, install residential fire sprinklers in your home.
o Avoid painting or covering the fire sprinkler, because that will affect the sensitivity to heat.
o Don’t do what our parents did in their active adult condo. After a false alarm caused by burning food in the oven, they sealed their smoke alarm with a shower curtain. Message to the children - better to burn up than be embarrassed!

For more information on the Install. Inspect. Protect. Campaign and other fire prevention information, please visit www.usfa.dhs.gov/smokealarms. Remember to Install. Inspect. Protect…Smoke Alarms Save Lives.

Budget Strapped Retirees Trade Work for Rent at Parks

As we have said before, if your retirement fund isn’t what you hoped it would be, it’s time to get creative. One of the most interesting ways to stretch your budget was profiled in a New York Times article last week, “Retirees Trade Work for Rent at Cash-Strapped Parks“. The article profiles the experiences of several retirees as they travel around the country and help keep state and national parks ticking under the serious budget constraints these institutions now face.

As Sharon Smith points out in the article, there are 3 simple reasons why she and her husband Bill want to work in these parks: “We’re here for three reasons,” she said…. “No. 1, we like to travel. No. 2, we like people. And No. 3, we’re on a budget.” At the time of that quote, Mrs. Smith was making cinnamon rolls for the park center. Others provide bird guiding, cleaning, and maintenance. As states and the federal government have cut back on their support for parks, retirees working for free RV or tent space are now taking over more and more roles previous provided by paid employees.

The same idea is often played out in private campgrounds as well. Owner operators have long relied on work campers with skills and a willingness to work to handle maintenance and special projects.

For further reference:
Don’t miss the special 6 part series at Topretirements by our writer friend Betty Fitterman - “Living the Mobile Lifestyle in Retirement”
Work for RVers and Campers
RV Park Store (work opportunities)

Sunbelt Shines on the 100 Best Places to Retire List for 2010

February 23, 2010 – The Sunbelt is still shining when it comes to best places to retire. Every year Topretirements.com publishes a list of the 100 most popular places to retire. This year 68 of the 100 top positions were occupied by towns in the Sunbelt. Florida dominated the list, taking 23 of the spots, followed by North Carolina (11) and South Carolina (8). The list is hardly static - 25 new towns made it to the top 100 in 2010.
As it has been since 2007, Asheville, NC was the #1 town on the list. The combination of mountains, Carolina climate, recreational and cultural opportunities, and choice of places to live make it a perennial favorite. Sarasota, FL, Prescott, AZ, and Paris, TN continued as the # 2, #3, and #4 most popular towns. Austin, TX moved up from the 9th position on our previous list to the #5 spot.

Some surprises
Towns making the 100 most popular towns at Topretirements list are selected from its constantly growing database of 450 retirement towns and 800 active adult and 55+ communities. Some of the 25 new cities on the list - like Boulder CO, Eugene OR, Santa Fe NM - were fairly easy to predict. Other new towns were more surprising choices. Those included Chattanooga TN, Cheyenne WY, Portland ME, Smyrna DE, and Cape Coral FL.

And those not making the list
To keep the list at 100, some towns had to make way for the new selections. Towns leaving the list in 2010 included the likes of Thomasville GA, Sanibel/Captiva FL, Maryville TN, Lake Mary FL, and Melbourne FL.
Topretirements.com, “Where Baby Boomers Go to Find Their Best Place to Retire”, has published its best 100 list annually since 2007. The list is compiled by calculating the 100 towns with the most online visits of the 450 cities reviewed at Topretirements.com. The list is essentially a popularity contest; it reflects the towns that site visitors are the most interested in for retirement.

Detailed reviews and facts about each of the 100 most popular towns are included in the website’s completely updated handbook, “100 Best Retirement Towns, 2nd Edition”. Here are the 100 most popular places to retire for 2010: (we have only provided links to the top of the list, you can find the reviews for all of these towns and more in “100 Best Retirement Towns, 2nd Edition”, or from the pull down menu on the top right of all pages at Topretirements - http://www.topretirements.com/active_adult_communities/National.html)

1. Asheville, NC
2. Sarasota, FL
3. Prescott, AZ
4. Paris, TN
5. Austin, TX
6. Green Valley, AZ
7. Winston-Salem, NC
8. Beaufort, SC
9. San Diego, CA
10. Ft. Myers, FL
11. Venice, FL
12. Athens, GA
13. Charlottesville, VA
14. Mt. Airy, NC
15. Crossville, TN
16. Sedona, AZ
17. San Antonio, TX
18. San Luis Obispo, CA
19. Flagstaff, AZ
20. Tucson, AZ
21. Phoenix, AZ
22. Gainesville, FL
23. Naples, FL
24. Halifax, CAN
25. The Villages, FL
26. Old Saybrook,CT
27. Denver, CO
28. Palm Springs, CA
29. Boulder, CO*
30. Oxford, OH
31. Summerville, SC
32. Myrtle Beach, SC
33. Fair Hope, AL
34. Eugene, OR *
35. Chapel Hill, NC
36. Ft. Collins, CO
37. Rehoboth Beach, DE
38. Orlando, FL
39. Colorado Springs, CO
40. Las Cruces, NM
41. Beaufort, NC
42. Chattanooga, TN*
43. Santa Fe, NM*
44. Ft. Lauderdale, FL
45. Brevard, NC
46. Vero Beach, FL
47. Murray, KY
48. Tallahassee, FL
49. Jacksonville, FL
50. New Bern, NC
51. St. Augustine, FL
52. Williamsburg, VA
53. Aiken, SC
54. Lewes, DE*
55. Pittsburgh, PA
56. Charleston, SC
57. Boca Raton, FL
58. Chicago, IL*
59. Clemson, SC
60. Palm Coast, FL
61. Bend, OR
62. Napa, CA
63. Santa Barbara, CA
64. Sun City, AZ
65. Delray Beach, FL
66. Portland, ME*
67. Fayetteville, AR
68. Greenville, NC
69. Portland, OR
70. Eufaula, AL
71. Henderson, NV*
72. Jupiter, FL
73. Cape Coral, FL*
74. Stuart, FL
75. Hendersonville, NC
76. Eureka, CA
77. Albuquerque, NM*
78. Pinehurst, NC
79. New Smyrna Beach, FL
80. Spokane, WA*
81. Smyrna, DE*
82. Ocala, FL
83. Bluffton, SC
84. Cheyenne, WY*
85. Manahawkin, NJ*
86. Princeton, NJ
87. Laguna Woods, CA
88. Tampa, FL*
89. The Woodlands, TX *
90. Walla Walla, WA*
91. Ithaca, NY*
92. Port St. Lucie, FL
93. Bowling Green, KY*
94. Grand Junction, CO*
95. Bellingham, WA*
96. Hilton Head, SC*
97. Madison, CT
98. Southport, NC*
99. Port Charlotte, FL*
100. La Jolla, CA*

*New to the List in 2010

What do You Think? Please add your comments below
For Additional reference:
100 Best Retirement Towns, 2nd Edition (2010)
25 Best Best Retirement Towns – 2009 (published in late 2008)
Wall St. Journal “Top 10 Places to Retire”

Is Medical Tourism in Your Retirement Future?

February 16, 2009. At first blush it’s a little hard to see what medical tourism - where you travel to a foreign country for a medical procedure or operation - is all about. After all, if you have any kind of medical insurance, why would you travel to a new country to have an operation when you you could have it done in the USA?

The fact is however, with health care costs increasing at six percent per year for the next decade, and medical tourism offering savings of up to 70 percent after travel expenses, there are plenty of reasons to travel. The Deloitte Center for Health Solutions announced in its new study, “Medical Tourism: Update and Implications,” that 750,000 Americans traveled abroad for medical care in 2007. Barring any tempering factors such as supply constraints, resistance from health plans, increased domestic competition, or governmental policies, Deloitte projects that outbound medical tourism could reach
upwards of 1.6 million patients by 2012, or 35 percent annual growth in coming years.

So why do people choose Medical Tourism?
Medical tourism to the U.S. has long been very popular, as wealthy patients from around the world seek out top U.S. health care facilities and specialists. Americans travel abroad primarily for medical operations such as cosmetic surgery and dental work, procedures not commonly covered by medical insurance. Almost 39% of Americans say they would go abroad for an elective procedure if they could save half the cost and be assured quality was comparable,with younger people and men more likely than others. Outpatient procedures account for 75% of medical tourism outside the U.S.

Value versus cost is the main reason for foreign travel. Patients can have procedures done for as little as 10% of the cost of U.S. treatment, which provides sufficient room to cover all travel costs, have a short vacation, and still save money. As one example, a knee surgery that would typically cost over $11,000 in the U.S. could be performed for a low average of just $1400 in other countries. State legislatures and health insurance companies have launched initiatives to explore the potential benefits of incorporating medical tourism into health plans as a way to save money. Many of the leading U.S. hospitals and health care systems have programs where foreign affiliates conduct procedures for U.S. residents.

Does it Make Sense for Retiring Baby Boomers?
Since Medicare will cover just about most major expenses when American baby boomers turn 65 (and none have done that yet), there isn’t much reason for older retirees to practice medical tourism. However, if you have no insurance coverage and aren’t under Medicare, it might be a very good idea. Likewise if you need extensive dental work or want cosmetic surgery at any age (which won’t be covered by Medicare), that’s another reason to consider it. High deductible and co-pay costs might be another reason to consider going to a foreign country for a big operation.

The Hot Countries for Medical Tourism
The Phillipines, India, Korea, Taiwan, Malaysia, Singapore, Mexico, Thailand, Brazil, Turkey, South Africa, Gulf States, Germany, and Costa Rica are some of the main providers of medical services for U.S. residents.

Plenty of Resources
The medical tourism industry is surprisingly well organized. There are several companies that will help organize your trip and screen providers for you (or have their own network). PlanetHospital is one of those, along with insurer Mondial USA and publisher Patients Without Borders. The Joint Commission International, U.S.-based provider of foreign hospital certifications, is another great resource. Its website has information on more than 200 certified facilities in more than 30 countries.

What You Should Consider
The Deloitte survey on Medical Tourism has an excellent list of considerations that everyone should keep in mind before they embark on any medical tourism. Most are common sense, but they include things like making sure that the trip is voluntary, that HIPAA privacy concerns are protected, that patients are informed about all risks and costs, and that the procedures are done at an accredited facility.
For further reference
The original 2008 Deloitte Study on Medical Tourism (very informative)
US News article on Medical Tourism

4 Reasons Why Not to Retire in These 7 States

February 15, 2009 - You have probably read about the problems Greece is having with its unmanageable debt these days. Well if you thought that sort of problem couldn’t effect you as a retiree in the good old USA, think again. A recent article, These 7 States are Headed for Something Worse, by Gregor Macdonald at Seeking Alpha makes a good case with 4 different reasons why 7 U.S. states are NOT the best place to retire. His conclusions are quite similar to what Topretirements reported on back in November (see links at end of article).

While Mr. McMacdonald’s piece was not specifically directed at retirement decisions, we think it is relevant. Here are the 4 reasons why he thinks these 7 states are in trouble:
1. All of the states on his list have large populations (at least 8 million people)
2. They are borrowing heavily,at least 1 billion dollars, to pay unfunded unemployment insurance claims
3. Each state has at least 15% underemployment
4. All are net importers of energy

The 7 states on his list are:
New Jersey
California
Illinois
Michigan
Ohio
North Carolina
Florida

So what does this mean to these states? Macdonald makes the point that all 7 states are being squeezed very hard, with no great resolution in sight. Real wage growth is stagnant or going backward. According to Macdonald, all “…seven states are squeezed hard at both ends: no wage growth at the top, and no relief through cheaper energy costs at the bottom.” The result - taxes will have to go up, interest costs on borrowing will increase, and services will decline. The spiral might get worse as residents get fed up and move elsewhere.

Is This Relevant to You as a Retiree?
For you as a potential retiree the impact of these states’ financial predicament might not be quite as bad. if you are retired, you probably don’t have to worry about being unemployed. You might have to pay higher taxes - if you have taxable income. You do have to be worried about cuts in services, as well as subsequent taxpayer revolts. And certainly it’s not much fun to live in a place where the news is bad and the economy is depressed.

We should note that Texas could have qualified for this list. But Macdonald took it off because it is a net energy exporter (not importer as erroneous first version stated) and thus doesn’t face quite as much pressure.

What do you think? Does his argument make sense to you, or could it affect your decision? Comment in the section below and let us know.

For further reference:
What are the most popular states for retirement
Be Careful about worst states to retire
“Best States to Die In”

Author Comment:
This article has stirred up the biggest controversy of any we have ever written. We view that as a very good thing, since it shows that people are thinking and expressing their opinions. The part of the article that was the most controversial was that North Carolina and Florida made both this “states to avoid” list and Topretirements’ “best” list, which is more accurately a “most popular” list. The fact is that these 2 states are such popular retirement destinations that even the most serious financial problems might not affect retirees’ plans to retire there.

The good news for Florida is that it has cut expenses in the face of declining revenues. Whether other states can do that is another matter - some are in worse shape than others. As other commenters noted, we also wonder why states like Oregon or New York didn’t make the list. The Pew Center’s report, “Beyond California“, offers a more thorough review of states in trouble, and we highly recommend it. Their list has 10 states on it, but does not include 2 states on Macdonald’s list - North Carolina and Ohio.

Retirees don’t have to be as concerned about the financial health of their state as do younger workers. Retirees usually don’t pay that many taxes, and it is the younger people who are going to have to struggle with future debts. Lastly, some readers were concerned that Macdonald was trashing every city in the state (e.g.; Asheville). NC might have economic woes, but that doesn’t mean all of the cities within it will be all that affected. Asheville remains the most popular retirement destination, and for good reason.
Everyone, thanks for the wonderful, spirited comments! John Brady

The Best Places to Retire for Spring Training

With the Superbowl successfully behind us, anxious sports fans are ready for the next season to get started. For baseball fans the wait will be short, as spring training gets underway next week. Spring training is one of the great joys and advantages of a snowbird retirement. Your favorite team is once again in your home town, tickets are affordable and plentiful, and the parks are so close together that you can even travel to road games. Baseball’s owners are no dummies either, they have picked some of the best places to host their spring training camps; most of these towns make the best places to retire lists for lots of other reasons too.

Spring training is thought to have started out in 1870 when the Chicago Whitestockings and the Cincinnati Redstockings ventured down to New Orleans to prepare for the season. Other historians credit the Washington Capitals as having started the spring training movement in 1888, when they organized a 4 day baseball camp in Jacksonville. Whichever version is correct, by the beginning of the 1900’s spring training had become institutionalized in both Florida and Arizona cities.

There are 2 spring training leagues - the Grapefruit League in Florida, and the Cactus League in Arizona (each has 15 teams). In general the east coast teams tend to be in the Grapefruit League and midwestern and western teams are usually, but not always, in the Cactus League. The leagues are split among National and American League teams, which adds to the stew. Teams move around, often because of a better stadium offer. In 2010, for example, the Orioles are moving from Ft. Lauderdale to Ed Smith Stadium in Sarasota. The Orioles will replace the Cincinnati Reds, who moved to Goodyear, Arizona for 2010.

In 2010 the first players will report to camp next week (the week of Feb 15). Games begin on March 4 and go through April 4. If you like baseball and are a looking for your retirement town, what better excuse than to tie the 2 activities together in one great scouting trip. Here is a list of where all the teams play, with links to reviews of their host towns where we have them:

Cactus League Mar 3 - Apr 4

Chicago Cubs play at Hohokam Park in Mesa, AZ. There is a referendum for a new $84 million spring facility, the Cubbies plan to stay on if the referendum passes.
Arizona Diamondbacks play at Tucson Electric Park in Tucson. This will be their last year here. They will move to northeast Phoenix in 2011.
The Los Angeles Dodgers and the Chicago White Sox enjoy spring training at Camelback Ranch in Glendale, AZ (northwest suburb of Phoenix). The two teams enjoy a state-of-the-art training facility with an open concourse, and plenty of premium seating.
Cincinnati Reds and Cleveland Indians enjoy the 1 year old Goodyear Ballpark in Goodyear, AZ. The Reds moved from Sarasota in 2010.
Colorado Rockies play their spring schedule at Hi Corbett Field in Tucson, a stadium that’s been around since the 1930’s. It’s their last season in Tucson, next year they moving up the Interstate to Phoenix.
The Texas Rangers and Kansas City Royals have their games hosted at Surprise Stadium in Surprise, AZ. This stadium opened up in 2003.
LA Angels of Anaheim play in Tempe at the venerable Tempe Diablo Stadium. The Diablo in Tempe was built in 1969 and renovated 2006.
The Milwaukee Brewers will be found at Maryvale Baseball Park in Phoenix.
Oakland Athletics are also Phoenix based, their winter home is the Phoenix Municipal Stadium, which dates to 1965.
Another twin bill is found in Peoria, AZ, where the San Diego Padres and the Seattle Mariners share Peoria Stadium, a 12,000 seat facility.
The San Francison Giants are crosstown from their west coast neighbors; they play at the Scottsdale Stadium built in 1992.

The Grapefruit League

Atlanta Braves enjoy their games at Champion Stadium Capacity in Lake Buena Vista, near Orlando.
The Baltimore Orioles moved to Sarasota’s Ed Smith Stadium (Capacity 7,500 and built in 1989). The Orioles were in Ft Lauderdale in 2009.
Boston Red Sox have their games at the City of Palms Park in Ft. Myers.
Detroit’s Tigers enjoy Lakeland as their home. Their games are played at Joker Marchant Stadium, one of the smaller venues with 8,000 seats. It was renovated in 2003.
The Florida Marlins share Roger Dean Stadium with the St. Louis Cardinals This east coast stadium is in the very nice town of Jupiter.
Houston Astros are in Kissimmee (near Orlando). They play at the Osceola County Stadium, which opened in 1984 with a capacity.
Another team with Ft. Myers spring training is the Minnesota Twins. Their games are at Hammond Stadium.
Those amazin’ NY Mets get ready for the season at Port St. Lucie’s Tradition Field, where they have been since 1988. Port St. Lucie is a new town and one of the fastest growing anywhere.
The New York Yankees are across the Sunshine State in Tampa. Interestingly, they play at Steinbrenner Field, a venue dating from 1996.
The Philadelphia Phillies are nearby in Clearwater, where they play at Bright House Networks Field (2004).
Pittsburgh Pirates conduct spring training in Bradenton’s McKechnie Field.
The Tampa Bay Rays head south about 100 miles to Port Charlotte and the Charlotte County Sports Park, which has a capacity of 7,000 and was renovated in 2008-2009.
The Toronto Blue Jays are in the little town of Dunedin. Their games are played at FL Dunedin Stadium.
Finally, the Washington Nationals enjoy an east coast spring training in Melbourne. Their spring venue is the Space Coast Stadium.

For further information:
Spring Training Online
The history of spring training

What do you think? Do you have a favorite spring training town? One that might make a best place to retire? Let us know in the comments section below.