The Pew Center named 9 troubled states in addition to California in its report, “Beyond California: States in Fiscal Peril”.

The top 10 Troubled States in the report are:
- California
- Arizona
- Florida
- Illinois
- Michigan
- Nevada
- New Jersey
- Oregon
- Rhode Island
- Wisconsin

These states’ budget troubles can have significant repercussions for retirees as well as general residents. Everyone in an affected state will be displeased to see higher taxes or fees; layoffs or furloughs of state workers; longer waits for public services; more crowded classrooms; higher college tuition, and less support for the poor or unemployed. But retirees could also see reductions of favorable treatment for retirees (such as property tax or income tax relief) as well as declining property values. Intergenerational strife is another possibility, as young families and seniors square off over education budgets.

California appears to be teetering on insolvency at times. “But while California often takes the spotlight, other states are facing hardships just as daunting,” said Susan Urahn, managing director of the Pew Center on the States. “Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers.”

In the report, Pew’s researchers identified factors that have contributed significantly to California’s difficulties, then determined the degree to which other states are experiencing the same challenges. These factors are: (1) loss of state revenues; (2) the relative size of budget gaps; (3) increasing joblessness; (4) high foreclosure rates; (5) legal obstacles to balanced budgets—specifically, a supermajority requirement for tax increases or budget bills and (6) poor money-management practices.

While the rest of the states share important characteristics with California, they may not be destined to follow in the Golden State’s footsteps. Some of these states already have responded aggressively to their budget crisis, although it is too soon to tell whether their actions will put them on solid fiscal footing.

“The 10 states are hardly the only ones at risk in this time of record-setting revenue drops, high unemployment and far-flung fallout from the housing bust and credit crisis. Virtually all states have been stressed by the downturn,” Urahn said. “We expect that when state lawmakers next spring turn to crafting their new budgets for 2011, many will confront an even tougher set of challenges. States already have made significant cuts, revenues continue to drop, and stimulus funds will be running out. ”

The Pew Center identified 4 trends running through the economic troubles of these 10 states:
- Unbalanced economies
- Revenues and expenditures out of alignment
- Limited ability to act.
- Putting off tough decisions

States’ fiscal situations are widely expected to get worse even if the national economy starts to recover. At the end of 2010, federal stimulus money that helped states meet some of their expenses will begin to run out.

Bottom line: The Pew Center emphasizes that some of the 10 states are making moves to solve their problems. There are plenty of other states that are also in trouble, and they might not be working on their problems. The point is that you should think twice about the state you might be considering moving to. Keep tabs on their fiscal health to make sure they are headed in a positive direction. If they are not, maybe you should reconsider moving there. Likewise if you live in a state with problems and were already thinking about moving out - maybe this is a good time.
For more information:
Read the full Pew report

But wait, there’s even better news! Under the new law existing homeowners, not just first-time buyers, will be eligible. The legislation is expected to help keep recent economic momentum going, perhaps not at Cash for Clunkers levels, but positive nevertheless.

The National Association of Homebuilders (NAHB) was very pleased with the news. NAHB Chairman Joe Robson commented: “We commend lawmakers for acting in a bipartisan manner to extend the first-time home buyer tax credit beyond its Nov. 30 deadline and expand it to a wider group of home buyers. The tax credit has proven to be a powerful economic incentive. Today’s action by Congress will further stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices.”

The new law continues the $8,000 credit for new home buyers who purchase their homes by April 30 and close on them by June 30, 2010. A new twist is that now existing homeowners buying a new home as their principle residence are also eligible for a tax credit, $6,500 in their case. The new bill expands income eligibility to individuals making up to $125,000 and $225,000 for couples. Existing homeowners will have had to have lived in their old homes for at least 5 consecutive years out of the last 8.

Bottom Line:
If you were thinking about buying your retirement home but were on the fence, and you have income you would like a credit against, this might be just the incentive to pry you off. Buy early and avoid the rush!

The subject of Home Owners Associations is a very complex one and cannot be adequately covered in one short article. In this piece we will try to lay out some of the broader issues that you should be aware of when moving into a community governed by a Home Owners Association.

If you have been living in the suburbs in a single family house for the last 30-some years, you might not be prepared for the minutiae that your new Home Owners Associations is lord over. To name just a few such rules:
- Dress code in public areas; joggers must wear shirts, cover-ups in common areas, etc
- Pets can’t weigh over (25, 40, ?) pounds
- Number and breed of pets is restricted
- Use of common areas like pools, picnic areas, and trails prohibited after (9, 10, ? PM)
- Renters must rent for at least (1, 3, ?) months (or no renting at all)
- Renters cannot use certain facilities on same terms as owners
- Parking restrictions apply by location or type of vehicle
- Guest restrictions
- And on and on and on

This is not a piece against Home Owners Associations. They are an important and welcome component to successfully living in a 55+ or condominium development. These organizations are essential to the effective operation of any community: they set the rules, enforce compliance, manage the assets, and look out for the financial and legal well being of their communities. The people that volunteer for these boards tend to be unsung heroes - they work hard and they spend a lot of time unraveling really thorny questions. Far too often their only reward is to be interrupted and criticized everywhere they go by someone whose narrow self-interest was affected by a policy or rule.
Some folks have a constitutional inability to live around rules. Those people might want to think twice before moving into a community with an HOA, because the association is going to have a lot to say about what goes on (or doesn’t go on) in their new community. As an extreme example, if they want to have junk cars or funny lawn ornaments in their yards, or have a pen full of barking beagles, an organization with an HOA is a bad fit.

Regardless of whether you go into your new community positively or negatively disposed towards HOA’s, here are some considerations you should keep in mind.

1. Due diligence. Before you buy your new home find out as much as you can about your HOA. Read the rules, check out the minutes, and assess the financial condition of the HOA. This step is crucially important so you are not surprised later on.

2. Be aware of the law. Some states, notably Florida and California, have extensive laws regulating Home Owners Associations, while other states have almost no law on the subject. You should be assured that your association is following both the regulations and best practice. For example, you generally have a right to prompt and accurate minutes of official HOA meetings.

3. Learn about the problems your community might be facing. Some issues to be concerned about: foreclosures or delinquent dues; excessive litigation with neighbors, former owners, or tenants; overdue major maintenance items (and funding thereof).

4. Who are the people on the board? It is always wise to meet with at least some of the current board members. Ask them about the big issues facing the community and get a sense for their qualifications and ability to handle them. The quality and expertise of the board is extremely important to handle the significant issues they face.

5. How effective and how prepared is the HOA for handling troublesome issues? Until you move into a community you probably aren’t aware of all of the issues that need to be managed - it can be almost as complex as running a small town or a very large business. Some of these include:
- Major maintenance sinking funds (money put aside for future major projects like paving, roofs, elevators)
- Annual fee increases, assessments, and budgets. What is the history of increases? Look for an organization with steady, modest increases and an absence of unexpected assessments. Erratic fees and unpleasant surprises are usually a sign of ineffective management
- Insurance. Is the HOA adequately covered for legal and natural disasters? Are they paying too much or have the wrong policies in force?
- Pets. Few issues cause more trouble between sometimes oblivious owners and touchy non-owners. Sizes, breeds, numbers, access to facilities - the potential areas for conflict are legion
- Renters. How long (or how short) can they stay, do they have equal access to facilities?
- Visitors and family members. What are the rules about visitors, especially younger people in a 55+ age restricted community?
- Facilities. Go to just about any facility (swimming pool, exercise room, etc.) within an active adult community and look for the list of rules. Dollars to donuts the list of potential infractions will be long and onerous. That’s because someone, somewhere, was inconsiderate. Once they annoy the wrong person, a rule will come out to try to control that issue.
- Water leaks. In many communities water leaks, particularly in unoccupied units, are a major issue. Are there policies and procedures for prevention and remediation?
- Environmental problems. Mold, asbestos, chinese dry wall, leaking oil tanks, natural disasters - all of these issues must be handled intelligently.
- Personnel. An HOA usually has employees - sometimes a facilities or property manager, a business manager, security guards, maintenance personnel, clubhouse and possibly restaurant workers. Does the HOA hire effective managers and monitor and review their performance?
- Rule making history and enforcement. An effective HOA has to be a bit like Solomon. They must have specific and general rules in place to cover most contingencies, and be prepared to reasonably address problems that come up unexpectedly. Look out for long lists of petty rules that try to cover every narrow issue that ever emerged. On the other hand when truly troubling issues come up, like one we know of where a disturbed adult child continually harassed his neighbors, is the board up to the task of removing the source of trouble?

6. New communities often have a bigger challenge. A new development generally forms an HOA soon after the first owners move in. At the beginning there might not be a big talent pool to draw from, and there is no institutional experience. So the new HOA’s track record might be rocky at first.

7. Be prepared to serve. Like we said earlier, there is no great reward for serving on a volunteer HOA board. But somebody has to do it to ensure the success of the community. Particularly if you have management, legal, or building related skills; and especially if you have common sense, volunteer to take your turn on the board. Someone has to run the place; you might as well know the person doing the job!

For further Reference:
Wikipedia article on Home Owners Associations (very good)
Community Associations Network
Community Associations Initiative
When Active Adult Communities Go Bad

Nicaragua Coast

1. Investigate the crime rate. Places like Brazil and Mexico can be extremely dangerous. There are safe places in almost any country, but consider how much you might be restricted in your daily activities.
2. Can you take living far away from friends and family? Losing contact with these people is the number 1 reason why people return to the USA.
3. Consider what medical care is available, and at what cost. In many countries it’s a pleasant surprise that you can buy affordable insurance and quality care. In others you might be disappointed in the quality of care, and face an expensive medical evacuation back to the states. This is particularly true for some of the medical specialties Americans have come to expect.

4. Will you have to live in a gated enclave? For many folks, this is OK. For others, it might be too restricting a lifestyle.
5. Check out the tax situation. This is perhaps the most complex area to investigate. The Forbes article explained how living in France can be affordable from a tax standpoint, if you take the right steps like putting your assets into a trust and distributing money to yourself in a certain way. For the unwary, however, double taxation and steep inheritance taxes might take away the bargain status.
6. Evaluate the political situation. Some countries in Latin America have a changeable political environment. The situation might be peaceful one day, but a new dictator could change all of that. You don’t want to a resident on the day the government is overthrown.
7. Are you OK with widespread poverty. The reason why you can hire a maid for $50 a week in some countries is because of the grinding poverty in your new country. Some people find they are not comfortable living in a place feeling like they are the feudal barons among the serfs.
8. Will you be welcome as a resident? Some countries like Australia only want high asset or high income residents, so budget seekers might be unwelcome. Obtaining a visa might be harder than you think.
9. How will you get money sent to yourself. Forbes reports that the U.S. prohibits direct deposits into accounts in certain countries like Vietnam. As a result you must follow tight restrictions on how your social security payments are made to you, and processing fees can take a big hit of your income.
10. Just how adventurous are you. In our experience the happiest expatriates fall into 2 classes. Those who love immersing themselves in another culture, including learning the local language, make up the first group.The other group is very happy to live in a gated community and embrace the lifestyle there. Those who retire abroad just to save money are rarely the happiest.

Forbes also came up with its list of the friendliest countries for retiring abroad. Making the Forbes cut of the best places to retire in the world were Austria, Thailand, Italy, Panama, Ireland, Australia, France, Malaysia, Spain, and Canada.

Bottom line: Retirement abroad requires careful research. Talk with people who have done it. Read the books. Hire a tax expert. Determine your priorities and carefully investigate the places you are considering. Lastly, go ahead and visit your new paradise. If you like it, rent for a while. Ultimately that’s the only way to be sure.

St. Petersburg Harbor

The exercise of identifying our “Affordable” List proved to be very interesting, and challenging, on many levels (see end of article for further explanation). The major challenge was exactly what criteria would we apply? Would our picks simply be the cheapest places in the U.S. (or the world)? Should we add other selection criteria like culture, crime rates, etc.? In the end we tried to think about what the average Topretirements visitor would be interested in. Since our visitors are a very discriminating group, we decided to use these selection factors:

- Affordability. Median home price in the community should be at least 15% less than the U.S. average of $174,100 (2nd quarter 2009, National Association of Realtors).
- Low tax burden. Only the 25 states with the lowest tax burden (per the Tax Foundation) were considered
- High culture. We weren’t going to pick just any cow town - our selections have all earned a “high” culture rating (110 or above in the system used on our review pages).

The other big challenge was how were we going to select the most affordable candidates from the 450 retirement towns profiled at Topretirements. Doing a manual sort would be quite a task. But relying exclusively on a computer to do the work could end up with some of the same strange results we made fun of in our “Whackiest List” article. Obvious solution: We used our free Retirement Ranger selection tool as the first pass, then made a careful review of the results to make sure the final selections were indeed “best places to retire”. The Retirement Ranger provided 20 towns that met our criteria. From those we chose the top 10, purely on the basis of lowest median home price in mid 2009. (all 20 selected are listed below).

The Top 10 Affordable (and more) Best Places to Retire from Topretirements (with median selling price of a home):
1. Fort Myers, FL $84,000
2. St. Petersburg, FL $120,000
3. Phoenix, AZ $132,000
4. Corpus Christi TX $133,000
5. Tampa FL $140,000
6. Aiken SC $140,000
7. Clearwater FL $142,000
8. Morgantown WV $142,000
9. Las Vegas, NV $142,000
10. Knoxville TN $145,000

These are the remaining 10 making the cut for “Most Affordable (and More)”:
Mesa AZ $145,000
Sioux Falls SD $146,000
Myrtle Beach SC $147,000
Pensacola FL $148,000
DallasFort Worth TX $150,000
Branson MO $150,000
Tallahassee FL $150,000
San Antonio TX $153,000
Clemson SC $155,000
Columbia MO $159,000

Comments about the 22 “Most Affordable” Towns on this list
Topretirements feels really good about the towns making this list. All are relative bargains compared to many other best places to retire. All are interesting places to retire where there is plenty of culture and where there are nice neighborhoods to live in. That said, some people will find places on the list that are more or less appealing than others. The point is, if you are looking for an affordable place to retire that is also an interesting place to live, this list is a good place to start.

Real estate prices have fallen tremendously in the last 2 years. In much of the country they are at 2003 levels, in some depressed parts of the midwest, they go even farther back. Here is what Karl Case, a professor at Wellesley College and co-founder of the Case-Shiller real estate price index had to say about current conditions in the New York Times: “there are…dangers…(but) housing is as affordable as its been in 20 years….I think we’ve seen the bottom”.

One of the most interesting outcomes of this list is that the affordable regions have shifted. Until this year the interior states tended to be offer the biggest bargains in real estate. With the collapse of prices in markets like South Florida, Nevada, and California, this is not nearly as absolute the case as it was a few years ago.

Notes About the Selection Criteria
1. Thanks to our current recession, real estate prices, the major component of affordability, are utterly chaotic in a big portion of the U.S. Using recent data is extremely important because in certain markets the average selling price in mid 2009 is one half (much of south Florida and Nevada) to one fourth (Ft. Myers) what it was in 2006. The market is so volatile that using the same criteria in 2008 would have produced a very different list - chances are the 2010 list will be different yet.
2. Related to the above, foreclosures and short sales are distorting prices in certain markets. The median sales price in Las Vegas might be $142,000, but that doesn’t necessarily mean you can buy into the average 55+ community for that little.
3. We used figures from the National Association of Realtors (NAR) whenever possible to determine housing prices in mid 2009. Smaller towns, however, are not included in that data. In those cases we used a combination of data from Zillow.com and City-Data.com. As a result the sales price comparisons are approximate and should not be taken as absolutes.
4. Taxes are not that important an consideration for most retirees, at least compared to proximity to family, climate, and housing costs. That’s because income and sales taxes are relatively insignificant unless income and spending are high. Property taxes, which are a bit harder to identify, have their greatest impact on people who continue to live in expensive homes. Bottom line about taxes: Consider including towns in higher tax burden states to broaden your search when using the Retirement Ranger.
5. Prices in active adult and 55+ communities are not quite as impacted by the housing meltdown as for homes in general communities. So if you move to a 55+ community your new home might not be quite as affordable as for the general homes in that community.

For further reference:
Most Tax-Friendly Places to Retire
25 Best Places to Retire

Consider three such lists put out recently. First one from U.S. News, another in a long string of “best places to live” from this magazine. Their “Best Affordable Places to Retire” list has some very odd choices, at least in our opinion. Consider the list:
– Ann Arbor, Michigan
— Asheville, North Carolina
— Aurora, Colorado
— Columbia, South Carolina
— Columbus, Ohio
— Eugene, Oregon
— Fort Worth, Texas
— Jacksonville, Florida
— Kansas City, Missouri
— Tucson, Arizona

Some of these cities (and that’s interesting in and of itself, almost all of these choices are fairly large cities) are great places to retire, no doubt. Asheville is everyone’s favorite retirement town. Ann Arbor, Eugene and Tucson are top places to retire. But some of these cities are not particularly affordable places to live. The average sale price of a home in Asheville this summer was close to $250,000, well above the national median of $174,000. Likewise at $202,000, Eugene’s median home sales price is higher than the national median. Prices in Tucson are at the national median, while the the other cities on this list are well below it. The biggest bargains, at least as far as home prices go, are Columbia ($137k, Columbus ($133k), and Kansas City ($144k). For Colorado prices, Aurora ($170k) is a relative bargain. (Most of these prices are from the National Association of Realtors 2nd quarter 2009 report).

As far as being low tax states, Florida and Texas do not have income taxes. Most of the other towns listed are in states that are somewhere in the middle of the pack when it comes to tax burden. So we don’t especially get why these towns are so “affordable”. Since the average home price is now below $100,000 in many towns across the country, we think there are better choices out there. Here is the link to the Topretirements list of “Affordable (and More) Best Places to Retire”.

Bottom line: A curious list of places. No smaller towns, a few cities that are on the expensive side, and many choices that are middle of the pack in terms of being interesting places to live.

List #2 is from the Today Show and real estate expert Barbara Corcoran. To be fair, it’s not really a retirement oriented list; instead it is her picks on which real estate markets represent the biggest upside potential for a general audience. Her list:
1. Sarasota, Florida
2. San Francisco, California
3. Lansing, Michigan
4. Marietta, Georgia
5. Grand Rapids, Michigan
6. St. Petersburg, Florida
7. Naperville, Illinois
8. Trenton, New Jersey
9. St. Louis, Missouri
10. Saginaw, Michigan

If you listen to the broadcast you will better understand why Ms. Corcoran selected these cities - there is a good reason for each. We love Sarasota and St. Petersburg from a retirement standpoint - they are 2 of the most interesting towns in Florida and real bargains right now. Most of the other cities selected might be good investments for working folks, but we can think of a lot more places we would rather retire. The 3 choices for Michigan are all interesting towns, but that seems like a lot of picks for one state that has had its share of troubles. We hope these markets do appreciate because Michigan could use all the help it could get, but don’t think we would move there to retire. Naperville, San Francisco, and Trenton are all in high tax states, something not in their favor. San Francisco is lovely but one of the most expensive places to live in the USA.

Bottom Line: Interesting list for real estate investors or speculators, not particularly relevant to retirees.

Finally, “America’s Recession Proof Cities for Retirement” from Forbes.

Their list includes many of the same cities on the first 2 lists including St. Louis, Tampa, Atlanta, Dallas/Ft.Worth, and Kansas City. The thing that strikes us as the oddest about this list is the subject - do/should retirees really care about recession as a selection criterion? Seems like a lot of other factors ought to be more important - like climate, taxes, quality of life, recreation, culture, etc.

Bottom line: A really odd selection criterion, and therefore some strange choices.

For further reference:
Topretirements has a page which lists the mainstream best places to retire lists, including our own. On that note, look for our new 2010 best places to retire list coming out in the next few weeks. Preview: there are a lot of new towns making the list!

Jennie Phipps also poked fun at the U.S. News “Best Affordable” list in her “Best Places to Retire, at Least for a Computer” article.

What do you think?
Have you uncovered any other strange best places to retire lists? Or do you disagree with our conclusions? Let us know in the Comments section below.

A press release from the Social Security Administration is advocating passage of a special 2nd round stimulus package for seniors, veterans, and the disabled (the same people who would have received a COLA). The amount of the payment in the Economic Recovery Act
Payment for 2010 would be $250, about a 2% increase to the average social security recipient. The press release has one of the great non-sequiturs of the season as its reason for recommending passage of the proposal: “Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982. This year, in light of the human need, we need to support President Obama’s call for us to make another $250 recovery payment for 57 million Americans.”

So let’s see, prices went up in 2008 so we needed an increase, but in 2009 prices went down but the “human need” went up. Conservative critics are citing the special stimulus package as an end-run on social security system’s rules, building a slippery slope where annual increases come no matter what happens to prices. In our mind the criticism seems valid, particularly since the only recipients of this stimulus program would be social security recipients. If we really need another round of stimulus, let’s give it to everyone and preserve the integrity of the social security system rules.

What do you think?
Sound off in our Comments section below.

For further reference:
When to Start Taking Social Security
No Social Security increase planned for 2010

What kind of retirement lifestyle is best for you?
Some visitors will recognize a few similarities to these questions and those in our free “Baby Boomers Guide to Selecting a Retirement Community“. Our goal with this article is to provide thought-provoking questions any self-respecting boomer should ask herself before deciding where and how to live in retirement.

1. Are you willing to move far away in retirement? Recognize that might mean starting over again with friends, and not seeing children and grandchildren as often as you do now. This issue is one of the most frequent causes of unfortunate retirement location decisions.
2. Can you afford to retire where you live now? Are your property taxes, insurance payments, and maintenance expenses going to be affordable on your retirement budget? Should you consider downsizing to save money and work?
3. Is warm weather important to you in the wintertime? Just how warm - would it be OK to have an occasional cold day in the 30’s or 40’s, or do you want at least 60’s every day? If the former is OK, there are lots of places in the Carolinas, west, and south. If it’s the latter, better head to South Florida.

4. Are you passionate about some activity, sport, or culture? If golf, tennis, or boating are extremely important you should probably consider an active adult community that has those activities. If culture is critical to you, better head for a college town or at least a medium sized city.
5. Do you like meeting people, but aren’t necessarily good at it? If that describes you, you should consider an active adult or 55+ community. In these communities it is so easy to meet people you almost have to try not to have a full social life.
6. Are you willing to try living in a new culture? If not, forget about moving to the south if you are from the northeast. Ditto moving to Mexico, or South America. No matter how cheap the lifestyle might be, you will not be happy.
7. Have you really thought through the idea of retiring in the suburbs where you live in now? It might be tempting to say you don’t want to move, but think about these factors: maintenance; taxes; driving miles to get to a store, doctor, or pharmacist. Imagine yourself in your 80’s living in your current house - who is going to maintain it, and what will happen when your doctor tells you to stop driving? The experts predict that residential density is the wave of the future - critical for transportation, energy efficiency, and an improved social life.
8. What is your plan for the long term? If we are lucky enough, youwill live into old age. If you live long enough, you won’t be able to take care of yourself. Long term care insurance is one way to plan for that eventuality, and you can either buy it or self-insure. But when the day comes that you need it, you better be ready. Many forward thinking people have a plan that includes living in a CCRC - Continuing Care Retirement Community- by a certain age. That way when they might need assisted living or nursing care, they can get in, and it’s paid for.
9. Have you thought about a 2 part retirement? Most people in their 50’s or 60’s probably wouldn’t like living in a CCRC - now. That being the case, you might be smart to consider a 2 part retirement (young retirehood in a 55+ or conventional community, then moving to a CCRC or independent living). You could make that a lot easier by making your first move to an active adult community that has these options as part of its campus, or has those type of facilities in the vicinity. That way your 2nd move, when you won’t be that young, will be a lot less traumatic.
10. Have you listed your priorities for the features that must be in your baby boomer retirement home? Here is what is on our list: universal design, door handles (not knobs), accessible counters, wide hallways, minimal steps, 1st floor master bedroom, no/low maintenance, public transportation nearby, walk/bike/golf cart to stores and doctors. List your must-haves, and don’t settle for less.
11. Before you buy, how about renting? We hear this time and again - I wish I would have rented first - then I would have known (fill in problem).

Bottom Line
Take a moment with your significant other to discuss these questions (and feel free to add others in the Comments section below). Are you both in agreement on these issues, and have you come up with a plan? In our opinion, the mere act of discussing these issues could help lead you to a more interesting and enjoyable retirement.

- Prices are falling in many active adult communities, which is stimulating sales to at least some degree. According to a report in the Press-Enterprise, Hanley Wood Market Intelligence, a real estate research firm, prices in Del Webb’s Solera Diamond Valley recently ranged from $170,000 to $291,000. Back in January 2008, similar houses were priced from $246,000 to well over $300,000.

- Hanley Wood also points out that active adult developments are selling about two and one-half times the rate than in more mainstream developments. The conclusion that some draw is that reduced prices are attracting buyers who want to strike - while the market is cold.
- Most forecasters believe that nationwide, prices may now be at the “pre-bubble” levels after a spectacular growth and a similarly drastic correction. The important housing price/median income ratio is at its lowest level since the mid-1990’s, while median prices are at about 2003 levels.
- Sunrise Senior Living announced last week it is selling 21 assisted-living facilities. Sunrise is selling because it needs funds to pay down debt.
- KB Home, according to a Reuters report, is being investigated by the U.S. Securities and Exchange Commission over possible accounting and disclosure issues. The home builder has other legal woes as well - homeowners have filed a lawsuit against KB and other parties, saying they falsely inflated selling prices in Nevada and Arizona.
- More people 55+ are moving into active adult communities but still continue to work. For instance, Del Webb reports that 50 percent of residents at its Sun City community near Las Vegas still work full- or part-time. According the company, that’s an 8 percent increase from 10 years prior. The explanation some have for this phenomenon is that baby boomers don’t want to/ are afraid to retire totally, but they do want to improve their lifestyles. Many builders of active adult communities are responding by including flexible layouts that can include home offices.
- Some top active adult communities owned by companies experiencing financial difficulties are being snapped up by stronger outfits. Province, a 2006 Best Active Adult Community in 2006 located near Phoenix, was just acquired by Meritage.

Bottom line:
Here is the Topretirements take on these developments.
- Prices are falling - it’s a better time to buy than it was a few years ago
- Some companies are having big troubles. Be careful about who you buy from
- Maybe, just maybe, better times are ahead of us

Topretirements is frequently asked this question and the SHRM survey confirms our theories on the matter. Millions of working Americans are nervous about their retirements because of a combination of ingredients: their investment portfolios are way down and they are fearful about their jobs.
According to The State, The unfortunate reality is that more and more people 55+ are out of work who would rather be working. The Bureau of Labor Statistics says more people in this age group are or out of work since they began keeping records. Experience Works, a nonprofit employment training organization for older Americans, figures that the expected retirement age for Americans is now 72.

What do you think?
Have you delayed your retirement for one reason or another? Please respond in the Comments section below.