Clunkers for Cash Program Gets Underway

Update - July 31: As of today the Cash for Clunkers Program has been so unexpectedly successful that 250,000 cars have been sold. Result: the program has run out of money, and the New York Times reports that the Transportation Department told dealers to stop taking new applications. But today (Friday) the House added $2 billion to the original $1 billion level. The Senate has not yet voted on it, but government officials said the program will continue running at least through this weekend.

July 27 - The program to take gas-guzzling cars off the road while stimulating new car purchases was so successful in Europe that it is now in place in the good old U.S. The law was signed by President Obama in late June and went into effect on July 27, after the resulting regulations were published in the Federal Register on July 24. Dubbed CARS by the government, The CAR Allowance Rebate System is a $1 billion government program that helps consumers buy or lease a more environmentally-friendly vehicle from a participating dealer when they trade in a less fuel-efficient car or truck. The program is designed to energize the economy; boost auto sales and put safer, cleaner and more fuel-efficient vehicles on the nation’s roadways.

Consumers will be able to take advantage of this program and receive a $3,500 or $4,500 discount from the car dealer when they trade in their old vehicle and purchase or lease a new one. Consumers you do not need to register anywhere or at anytime for this program. However, to find out eligibility requirements click here.

If you are a retiree or have a family member considering taking advantage of the program, here is a link to the government’s FAQs about the program.   Or call CARS Hotline at (866)-CAR-7891 (note, the hotline was overwhelmed when we called it today).

Pop Quiz: One question we can’t find the answer to - if you trade in an eligible truck but purchase a more efficient car in its place, are you eligible? If anyone knows the answer, please post in the Comments below.

The Best Retirement Places for Singles

If you are a single person looking for a best place to retire you will probably employ a few different criteria than those a couple might use.  Many of our Topretirements visitors have asked for more information about best places for singles to retire - this article is our attempt to help.

The most common, and certainly understandable, fear that single people have about retirement is that they will wind up in a community where most of the people are paired off. A place where singles are at best ignored, at worst discriminated against.  Fortunately with some careful planning and research you can find a retirement town or active adult community where single people are included and feel completely integrated in that lifestyle.

On the other hand there is a common opinion that single people have the easiest time finding their best retirement community. That’s because, unlike a couple, they don’t have to compromise. As a single person you get to pick the retirement lifestyle, kinds of activities, and the types of people you want to pursue.

In researching this article we found a few experts willing to dispense advice on the best singles retirement towns or communities.  They might or might not be right about their recommendations, but at Topretirements we are a bit skeptical. Our view is that there are many best places for singles - but rather than focus on specific towns or 55+ communities, it might be better to make your selection following certain principles.  Hence the recommendations below:

1. In general, bigger is better for singles. Choosing too small of a community reduces the potential pool for both friends and dates.  Smaller communities tend to have a more fixed social order, so they tend be harder to crack into  than larger ones. That means that 55+ communities like The Villages, Fair Hope, Laguna Woods, and Sun City could be good choices.

2.  Consider carefully the choice between  a town and an active adult community. The environment for singles can be quite different in a town vs. a 55+ active adults community. A city or town will probably have more possibilities in terms of things to do and the people you meet than a development.   Even if you are the kind of person who is very interested in the active adult lifestyle, you still might want to consider choosing your town before your 55+ community. By moving in stages you can put down some roots, make friends, and research local 55+ options. Then after you have evaluated the town and you know that you like it there, you can choose your active adult community based on a more informed investigation than you would make by charging in with no local knowledge.

3.  Most of your success as a single person depends on you. We just read an interesting book that pokes many holes in single stereotypes.  “Singled Out: How Singles are Stereotyped, Stigmatized, and Ignored, and Still Live Happily Ever After” by Bella DePaulo, Ph.D will make anyone feel more positive about the benefits of being single. DePaulo debunks a popular myth that single people are lonely in their old age.  In fact, she finds that women who have never married tend to be the happiest people in retirement.  The reason for this appears to be their successful strategies for making and keeping friends.  Women (and men) who seek out activities and volunteer opportunities not only feel fulfilled, they make deep friendships along the way. Those who tend to be the loneliest are those who relied on work or spouses for social engagement, and don’t have deep friendships of their own. Men in particular are not good about forming strong friendships, and that hurts them as single people.

Whatever your previous success at making friends, that doesn’t necessarily have to be your future - if you work at it. One of our friends thought his father would be a lonely old man once his wife died.  His dad had spent years taking care of our friend’s mother, and his dad didn’t seem to have any friends. Much to everyone’s pleasant surprise,  in single life the dad is transformed. Now he  volunteers at the hospital every day, travels, and has made tons of new friends.

4.  Look for retirement towns and 55+ communities where there is a lot to do. This idea applies to both towns and active adult communities. The more activities and institutions there are, the greater your opportunities for making friends.   Before you buy in an active adult community make sure there are activities that can stretch you in new directions, because taking up some new sports or crafts is a good way to make new friends.

5. Look for a 55+  community that has an activity director. We heartily endorse the recommendation to choose a community with an activity director. His or her job is to engage the residents with one another - that will make your entry into the  community that much easier.

6.  College towns and cities can be ideal for singles. Both types of towns have plenty to do, which means that you can be out meeting people through many different activities - from taking adult education classes to volunteering to attending concerts. Small cities like Sarasota or Austin or Boulder have nice downtowns and there is always something to do.

7. Stay away from the suburbs. You might live in the suburbs now. If you have a big web of friends, maybe you should stay. But cracking the suburban social scene as a new, single resident is one of the harder things to pull off.

8.  Carefully evaluate the singles scene in any active adult community - before you buy. A really good idea is to rent before you buy. Thanks to our current housing bust it is usually very easy to find a nice rental for a week, month, or season.  Attend the various club meetings and take part in some sports or other activities. Are there other singles, or do the couples actively invite single people to participate? Award extra points if there is an active singles club. Many communities have special package deals that let you vacation their at below market rates (and even if not announced, it is worth trying to negotiate your own package). Even before you go to a place, check out Discussion Forums on this and other sites about specific communities for hints about the single life in those communities.

9. Think about moving with your friends. If you already have a solid group of close friends, think about retiring together. That could be as simple as moving to the same community or town, or it could even be shared housing.  Some architects report that designing homes meant to be shared is a growing business.  In addition to instant friends, being able to share resources as you get older is a real attraction.

What do you think? Do you already live in a community that you know is great for singles? Or one you know is not?  Share your thoughts in the Comments section below, or in our Forum.

For Further Reference:
Excellent discussion about being single in retirement at City-Data

Are We Seeing the End of the McMansion Era?

The current recession has had no end of side effects. Now a study from the American Institute of Architects finds another one - the era when giant McMansions dominated the face of North America appears to have come to an end.

The Home Design Trends Survey  polled architects to find out what their clients are interested in building. It determined that buyers are interested in smaller, more energy-efficient homes than in years past. Large entry foyers with high ceilings appear to be out. What is in are enhancements to existing homes that increase living space from the existing footprint without impacting energy consumption.  Indoor/Outdoor areas such as patios and outdoor kitchens, finished basements and attics, and other types of improvements are popular.

“The era of the ‘McMansion’ could well be over as home sizes have been trending downward recently, with a significantly higher number of architects reporting demand for smaller homes this year,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “And as the housing boom has passed there seems to be a renewed interest in investing in properties to make homes more livable, as opposed to real estate that can be resold quickly for a profit.”

For further reference:

AIA Home Design Trends Survey

10 Steps You Must Take Before Buying in an Active Community

Our latest installment, “When Active Adult Communities Go Bad“,  might have put the fear of the Lord into many of our readers.  This week’s article is intended to provide the basic steps you can follow to minimize your risk in buying into an active adult community, and help you take advantage of the many bargains out there in the market.

The topic is particularly important in 2009 because the housing market is in such turmoil. As the expression goes, a rising tide lifts all ships; unfortunately the converse is true today. Things can go very wrong in a down real estate market, so extra caution is well-advised. Here are our top 10 Self-Defense tips (and of course start with this one:  Find an ethical, knowledgeable real estate agent and use his or her advice wisely).

1.  Don’t be the first buyer (or one of the first). These days there are no guarantees a community will ever get finished, or sell out.  If it doesn’t get built the way it’s promised, you could be living in a ghost town.

2. Go with reputation. America’s top builders with solid financial numbers are generally a safe bet. They have the marketing and financial muscle to finish their communities, and you have less chance for getting burnt.  Not to say there aren’t many local developers with blue chip reputations.

3. Practice your due diligence. Regardless of who you buy from, dig into  the company financials. Interview current residents and neighbors.  Has a 55+ community been renting to anyone just to pay the bills (and jeopardize its age-restricted status or have undesirable neighbors)? Google the project to look for controversies or legal issues you might have overlooked.

4. Consider a resale unit. In many active adult communities today local real estate agents have a long list of attractive properties. Their owners are eager to sell, usually at a lower cost than a comparable new unit. Often these homes  have the kinks worked out, and there might be additional improvements you won’t have to pay for. On the downside, you might not qualify for a warranty or have little recourse.

5. Scrutinize the Home Owners Association (HOA). Effective HOA’s are a lifesaver. Well-run associations run a tight financial ship; they won’t ignore bills that could lead to your community going bankrupt. They enact meaningful and fair rules to protect everyone’s assets. They fight for the community’s legal rights vs. the developer to make sure that the community’s interests are served.  The converse is true too.  Inbred, lazy, or unskilled associations drop important balls.  Everything is fine until one day you find out that bankers have foreclosed and you are about to lose your golf course or community clubhouse.  If you want to see what can happen when condo associations go bankrupt, read this article: “Condo Associations in Bankruptcy“.

6. What is the Reserve (Sinking) Fund status. A reserve fund is essential. It puts away money every year to pay for future major capital costs like a new roof, road resurfacing, or utility lines. If inadequately funded, some day you could face a bankrupting assessment.

7. Assessment History. Find out if there have been assessments in the past, and for how much.

8. Relationships with the Developer. Research and interview to find out how the relationship between owners and the HOA is going with the developer.  There will always be issues, but look for a relationship that is cooperative and friendly.

9. Home Inspection. Always, always pay a professional for a home inspection. Even a new home can have serious problems.

10. What else could get built nearby? Too many people have bought into an idyllic setting, only to smell the bulldozers clearing that forest across the street.  Find out what protections there are for any views or undeveloped areas.

Finally, invoke all your common sense.  There are many excellent bargains to be had today. Careful buyers  can make some smart investments. Just make sure you do your homework before you turn over that deposit check!

For Further Reference:

10 Questions to Ask Before You Buy

When Active Adult Communities Go Bad

Community Associations Network (an excellent resource about HOA’s)

Rethinking Retirement in a Recession

In the last year mentioning the word “retirement” often generates a pause or a snigger; it might even seem like you’ve made a sick joke. As in, “What retirement? My 401k has blown up, my job gone, and along with that my retirement dreams.”

True enough, millions upon millions of baby boomers are asking hard questions about their retirements.  Sadly for many of us, the new reality is here - we won’t have enough to retire on comfortably. For others the day of reckoning is all too close; they never saved enough. Even if there hadn’t been a global economic meltdown, they were never going to retire in the lifestyle to which they had become accustomed.

A July 4 article in the NY Times, “How to Make the Best of a Delayed Retirement“, offered interesting answers to some commonly asked retirement questions.  CBS MarketWatch has a slew of articles like “Can You Afford to Retire-Ever” and even a short video on “How Much Money Do You Need“.  Another article on MSN Money offers additional advice about Delaying Retirement. The good news from all these is that there are plenty of positive ways to take the new retirement realities in stride - through planning, imagination, and some hard work.    Here are some of the key points.

Eileen Zimmerman, the author of the article in the Times,  suggests setting  aside your fixed ideas about retirement. Perhaps your portfolio won’t allow you to completely retire. But you probably can find a flexible workstyle that will allow you the best of both worlds. You might be able to work from home on a flexible schedule, or even job-share. You could try a new career or position - maybe without the corner office of manager title or as much money - but it will pay the bills and give you something to do.

That brings up another point. Depression and general malaise all too often occurs when a person glued to their job suddenly finds herself without purpose or plans. Lynn Berger, a career coach and licensed mental health counselor in Manhattan and author of “The Savvy Part-Time Professional” was quoted on this point in the Times article:  “Many people experience a rapid decline in physical and mental health soon after retirement, due to lack of activity and purpose. ” Her point is that a gradual transition to retirement can be a good thing. It might also force you to do something that far too few retirees do before they retire - and that is plan out their objectives and dreams for retirement. In our experience humans aren’t built to do nothing, the happiest people among us tend to be those with a purpose.

The Times article also answers other interesting questions, including how to discuss your retirement (or non-retirement) plans with your boss. Hint: Do it and avoid surprises.

What are your retirement plans? Are you going to retire cold-turkey (or did you already)? Or will you gradually transition to retirement or  a new job? Share your experiences using the Comments section below.

For Further Reference:
How Much Can I Earn and Still Receive Social Security Benefits