Welcome to Topretirements.com, where active adults 55+ can find their best place to retire

March 31 — Baby boomers are known for their devotion to preserving the environment - at least when they are not driving their SUV’s. So the big question is, will the folks who pioneered Earth Day look for green (sustainable) retirement and active adult communities? Just as important, will the marketers of those communities recognize the need and make the product available in an appealing concept?

We recently came across some examples of green communities, which is encouraging. Shea Homes, a large national home builder, has announced that environmentally friendly homes will be the focus of some of its new developments in Florida and other sun belt states. These homes will be so-called “eco-friendly”, and will have energy saving features such as solar attic fans, motion-sensor triggered lighting, energy-efficient windows and appliances, and garages with electric-vehicle charging stations. Some materials like insulation will be recycled. According to a report in Off the Grid, Shea says it has “focused on small, incremental green features that will add up to important energy savings.”

Meanwhile other developments are getting on the environmental, or green, bandwagon as well. Some retirement homes being built for the military in San Antonio feature solar hot water heaters. A retirement community builder in Maine, Sea Coast Management Co., has offered incentives to install solar water heaters as well as a Toyota Prius to home buyers.

Cohousing communities tend to be at the vanguard of green retirement communities. Although these communities might be a touch too new age for many people, they are almost always interested in preserving the environment, as well as sharing common facilities and ongoing connections with neighbors. These intentional neighborhoods, created and managed by residents, offer an innovative solution to today’s environmental and social challenges. Here is a link to a directory of co-housing communities.

How green is green? As Carol Gulyas wrote at Topretirements last year in “Looking for Green Retirement Communities“, it is important to evaluate “eco”, “green”, and “environmentally sustainability” claims carefully and sceptically. Many active adult community builders talk about green, but the reality is not always up to the promise. She suggests that you learn more about what it really means to be environmentally friendly - and then ask questions of builders to be sure. Of course part of the equation is how much baby boomers will pay for when it comes to the environment. That’s because for now anyway, being green takes some green.

March 28 — January housing statistics from Case-Shiller were released this week - and the news continues bad for sellers, good for buyers. Of the 20 metro markets that this firm tracks, only 1 metro managed higher real estate prices vs. the year ago period, Charlotte (+1.75%). The 19 others had declining prices, with 10 of them experiencing double digit declines. Las Vegas, Los Angeles, Phoenix and San Diego had the biggest drops (Las Vegas went down over 19%). Overall the 20 city index showed a 10.7% decline in January 2008 vs. Jan. 2007.

Meanwhile industry pundits had plenty of theories about what this all means, and above all, when it will get better. One of the most interesting we read was by Barry Ritholz. His point is that until illogical sellers get the picture that there is too much inventory out there and reduce their prices, the market will be soft.

Another provider of housing data ran into flack this week over the positive way it slanted its reporting of its February numbers. The NAR (National Association of Realtors) chose to highlight sales changes from January to February, instead of the more traditional year to year comparisons (thus eliminating seasonality). The effect was to mask the declines that actually existed year to year - although sales increased 3% from January, they were 24% behind the year ago period.

Other pundits wonder when the market will turn around - can the end of the bad news be near?

March 24 — The stereotype would have you think that the hordes of baby boomers moving into active adult communities can’t wait to move into a smaller house. According to a new study from the National Association of Home Builders (NAHB), however, the reality is somewhat different.

The study, “Profile of the 50+ Housing Market”, points out that more than 85 million people will be 55+ by 2014. Many will be buying in homes specifically built for 55+ buyers, and these won’t be all that small - the average home will still have more than 2 bedrooms and over 2,000 square feet for living. Yards and other maintenance-requiring items will be downsized, however.

The study found at least one difference between homes built in age restricted communities vs. those for 55+ buyers in general. Homes in restricted communities are less likely to have specialty rooms like dens, offices, or libraries.

Multiple reports in the press agree that buyers in the 55+ market are stronger prospects and thus less affected by the current real estate slump than other home buyers. Boomers tend to have more equity in their homes as well as other substantial assets. Even if they have to sell their existing home for less than it was worth 2 years ago, they can still be comfortable buying a new home. Few need to take out a mortgage or qualify for financing. Most plan on buying a better quality home than they have now.

A recent article in the Arizona Star backs up the conclusion that the market for active adult communities is in much better shape than the overall housing market. Insiders quoted there agree that retiring baby boomers are ready to move and they have the resources to make that happen. There is pent up demand for these homes, with the activities and amenities found in these new communities often more important than the homes themselves. More than half of those planning to buy in 55+ communities plan to purchase a home in the same county as where they currently live.

March 18 - Maybe it is the softer market for real estate and active adult communities. It could be a bold move to capture market share when many real estate developers are down. Or perhaps it is just an awakening to the possibilities. Whatever the reasons, a number of leading active adult communities have been on an advertising tear lately, placing their ads in venues where they haven’t been seen before.

Leading the charge has been The Villages, the active adult behemoth south of Ocala, FL. Anybody who has been watching golf on network television lately has been exposed to their messages many times by now. In Topretirements’ experience, this is the first time that a retirement community has gone to national television to look for prospects. They also seem to have a big presence at some of the baby boomer websites such as eons.com. (we are waiting for them to see the light and advertise at Topretirements!)

Many other active adult communities are relying on the most successful new media, paid search. Go to any web page having to do with retirement communities or active adult communities, and you will see those nice little ads on the side from Google, Yahoo, and MSN. Lake Ashton, Robson, and Bellavita are some of the leading advertisers we have seen using this media.

The most prolific advertiser of them all is Erickson Communities. Not only do they seem to have an endless stream of press releases and ubiquitous newspapers, but they also have their own retirement TV channel - Retirement Living TV.

Other advertisers are relying on old standbys like newspaper ads, billboards, and direct mail.

What does this all mean for you, the baby boomer who is looking for the right active adult or over 55 community? Other than being an interesting phenomenon, we think that all this new advertising says that active adult communities have arrived as a big business. It is also a statement that the big players are open for business, eager to court and attract you as a potential buyer. So it’s a good way for you to find out about the best places to retire, right from your armchair.

Here’s how to get information about how to advertise at Topretirements

March 11 – They’ve dreamed about it, and they have talked about it. Many have actually planned for it. But the one thing they have in common is this - just about everybody is worried about it. The “it” being retirement, which is drawing nearer and nearer for tens of millions of U.S. baby boomers.

Conversations on various discussion retirement forums on this site and at other baby boomer communities such as www.city-data.com reveal another side to the current retirement community diaspora that it is about to happen. That side of retirement and retirement communities is an anxious one, showing a depth of concern that is somewhat surprising.

The categories of concerns fit into fairly obvious categories: will I have enough money, where will I move, should I move, what I will do to keep busy, and issues concerning family and friends. Many thought they had everything figured out – then discovered their carefully laid plans didn’t work out the way they had intended. Some people are deeply pessimistic, while others, who clearly feel like they took the hard road of preparation vs. indulgence, tend to lecture their less fortunate brethren.

Below are some of the titles of posts (in bold) gleaned from various online discussion forums, followed in most cases by selected snippets (after each “-”) to give you a “real world” flavor for their concerns. Topretirements visitors are urged to get their retirement retirement worries off their chest in this site’s Forum. After all, we all know by now that talking about our problems is the first step in doing something about them!

Why are Americans in such bad shape financially?
- You haven’t seen Nothing yet! The retirees of the last 20 years will be the last ones to have an employee sponsored retirement. The next 30 years are going to be a “Bloodbath” unfortunately. And when SS runs dry it won’t be pretty.

- Hmm, let’s see…most people spend more than they earn and therefore can’t or don’t save much, raising a family is extremely expensive even when you live frugally and many are in denial - thinking they have lots and lots of time left to get it together, or like … has pointed out, they believe someone or something will take care of them - it will all work out. Another reason: People underestimate how much money they will actually need once they are retired.

- Since most people haven’t saved enough for retirement, many of us fall into the category of not being fully prepared financially for our older years. This problem isn’t unique - actually the odd man/woman out here it is the prepared individual who has been planning and saving for retirement for years.

Women retiring alone to a new city or state
- I am very torn about where to go. I love the sunshine and dry weather — factors in my choices. I also want a social network, and am an east coaster, originally, and am wondering if I should reconsider the east coast because it seems more social. It will also just be my retirement income (it’s just me!), and so lower costs, rather than higher, are important.

Is Retirement going to become impossible?
- We considered commuting when we bought our house 5 blocks from my office and one mile from husbands. We are talking about retirement and have found an area with sidewalks to all shopping for five miles and most of what we need like food, coffee shop, drug store are within 3 blocks. This was a big deal for us.

- We don’t want to have to get in a car and drive to everything and most of the housing areas require that.

- I don’t care what anyone does; just don’t be a whining preachy hypocrite.

- At what point do you take responsibility for yourself and your future? It can be done, but if you don’t know how, then now is a real good time to find out and make the a plan

- I began investing in earnest in 1985. I was working full-time flipping burgers and attending college full-time, scraping what money we could to invest with. In 2001 I retired, took out some capital and bought a farm out in a forest. Today we are able to live largely off the remainder of our portfolio.

- If people chose not to see reality and take control of their own lives and are instead content to shop at the company store, then they must accept whatever The Company gives them.

Why do people feel the need to move when they retire?
- I cannot afford to stay in my own condo - too expensive once I no longer have a job. I moved a lot in my youth, and ended up in the Boston area about 30 years ago. I left NYS because I disliked it so much.

- It’s nice if you can stay where you want to stay, assuming you don’t want to move, but many people have to move for financial reasons because their income is going to become lower and fixed.

- I live in Orange County, CA, when I retire, I cannot afford to pay the house payment and the HOA, food, transportation and medical costs all at once! I didn’t mention clothing because I haven’t bought any in a long time.

- We will not be fully retired for at least 10 years, but we moved to the state that we will stay put in. I do miss my friends, a lot and we have not been successful in making friends as good as the ones we left behind. Food for thought.

- The town I am living in now offers the kind of activities I enjoy in retirement. I’m never bored.

- I look forward to finding some nice looking area with lots to do and lots of other grown-ups to meet. Lectures, classes, museums… I hope I don’t find my perfect retirement city too soon or I might want to quit and move right now!

- We have to move away from the family some, both kids live very close by with in a mile or two and that is wonderful but it is very costly too (for us). Once we move away they will have to fend for themselves and I’m hoping that they will finally get a handle on it.

- Retirement has always scared me. I did not have good role models for it. That’s why we support our parents financially. They were all self-employed too!!

- My prediction is that the USA will be segregated between ‘young’ and ‘old’. ‘Young’ will be families in high-tax areas who need good schools. ‘Old’ will be retirees who can’t afford the high taxes, even with local tax breaks.

- It is a shame that some places people lived and worked for many years are no longer affordable for them to retire in… If it is not housing costs, it is taxes and if it is not one of those the health care will get you or be unavailable. Such a shame families are being split up so much. Good luck

- We relocated after retirement because of expenses. Our kids are in California and our sibs, etc. are in NY. Some choice of places for us to live, huh? We just couldn’t make ends meet if we moved to either place. It’s nice here in Oregon and I don’t regret being here but when the holidays roll around and traveling is a hassle, I do wonder what the heck we’re doing up here.

Other topics of interest include:

How bad did your 401k or retirement portfolio drop?

Retiring on a Very Limited Budget – Where

I married you for life – not for lunch

How close is too close (to your children)

When to start taking social security

Housing Bubble and Real Estate Prices

Working in retirement

March 4 — Here’s a different approach to selecting a retirement community - don’t bother. Instead, why not travel the world. It can be cheaper, and it certainly will be more interesting than staying in one place. Topretirements came across 3 such recommendations this week, so there must be something to it.

Stephen Joel Trachtenberg, the dynamic former President of George Washington University, proposed on his higher education blog that one might consider taking up Cunard Lines on its offer of a continuing cruise around the world.

Trachtenberg suggests that living aboard a ship and traveling around the world is certainly “less expensive and more satisfying” than living in an assisted living facility. Plus, the cruise comes with extensive staff like stewards, housekeepers, cooks, activity directors, non-stop entertainment, and endless cultural opportunities. Not to mention an infirmary and medical staff for primary health care. The jokes are better on the ship too!

Cunard’s 105-day cruise, “Exploration of Distant Horizons,” does cost a lot, approximately $22,000; more if you need an ocean view. But on a daily basis that’s about $210 a day, less than just about any New York hotel or assisted living facility. With the cruise you get first rate cuisine and a look at many of the world’s most interesting sites (Papua, New Guinea anyone?) As Trachtenberg points out, that’s a lot more interesting than a weekly visit to the strip mall. Unfortunately, the Cunard Cruise does end after 105 days. But for others who are interested in permanent cruising, there are various cruising condominium alternatives, where you never have to go ashore.

Having got the travel bug with the Cunard cruise, the AARP hit us with an article about Stan and Marcia Klein’s Adventures, who struck out even further. Initially this adventurous couple went through a few years going on foreign home stays and taking other tourist explorations. Then they got really serious - they sold their home in Connecticut and just about all their belongings. Now they explore the world interspersed with stints making more meaningful contributions. Part of the year they volunteer in various parts of the globe (e.g.; in Zimbabwe with the American Jewish World Service), while the rest of the year they find themselves in great demand as house sitters at different locations across the globe. Theirs is an interesting and charming tale, we highly recommend it.

Finally we just read about a couple that was determined to set a record for most days at sea - 1000 days at sea! The husband seems to be still at it, but the woman had to bail at just over the 300 mark. Not bad, and about 299 more than the Topretirements’ significant other would stand for.

All of these adventures sound great for the newly retired. As long as you are active and in good health, what fun! But are suspicion is that even these adventurers will eventually modify their rolling stone approach to life. But oh the tales they’ll have to tell!