Category: Financial and taxes in retirement
January 3, 2012 -- For baby boomers who decide to retire on one of the coasts, the cost of home owners insurance can turn out to be a most unpleasant surprise. Worse, these costs can escalate from year to year and provide a threat to your happy retirement. In this article we will review some of the top things you can do to both reduce your premiums and prevent them from escalating out of control in the future. You are not powerless to accept premium increases, if you are pro-active.
1. Talk with your agent. Your agent, if she is a good one, should be able to
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Published on January 3, 2012
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Category: Financial and taxes in retirement
Editor's Note: We are indebted, as we so often, to our senior member OldNassau for suggesting this topic. Thanks!
January 2, 2012 -- Resale value, Neighborhood, Home Owners Association fees, Amenities, Taxes, Climate - check, check, check, check, check, and check! Most people looking at a place to retire usually carefully consider these and many other factors before they make an offer on a home. Unfortunately, they often miss what can turn out to be an extremely important factor - the cost of home owners insurance premiums for that new home. While the cost of home insurance might not be terribly important in many areas of the country, it is critical in regions that are subject to natural disasters like
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Published on January 2, 2012
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Category: Financial and taxes in retirement
By Jay Mills
A few years ago retirement used to be about--well, retiring. Perhaps you moved to somewhere warm, bought a condo, and enjoyed the slow, relaxing pace of retirement.
Today, baby boomers are living more active, goal-oriented retirements. They're starting new businesses, traveling the world, and pursuing new hobbies. A common thread among many boomers is a desire to continue their passion for "lifelong learning." In fact, according to U.S. News and World Report, the number of baby boomers enrolled in some type of post-secondary education has increased by 20% in the last decade(1). And many are opening 529 Savings Plans and naming themselves as the beneficiaries in order to prepare
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Published on December 12, 2011
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Category: Financial and taxes in retirement
By Mike Brady
The power of cocktail party conversations should not be underestimated. Countless decisions on investments and other matters have their roots in the chit chat made over a glass of chardonnay and mustard soaked mini hot dog roll. But when it comes to choosing a retirement location, this advice could be hazardous. The financial and tax issues that affect retirement choices are particularly difficult and confusing, yet of critical importance. This article is intended to help you identify and prioritize them.
Choosing a location as a great place to move for financial reasons based on one piece of information might be a very big mistake. For example, an individual might hear
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Published on December 6, 2011
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Category: Financial and taxes in retirement
November 22, 2011 -- A survey by the Employee Benefit Research Institute found that only 13% of workers felt very confident they would have a secure retirement. To help get you into that elite group, here is
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Published on November 22, 2011
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Category: Financial and taxes in retirement
October 31, 2011 -- This isn't a good news story. Obviously, no one is going to get rich, or even thrive on social security alone. After all, it was designed as as a security blanket to keep retirees from starving, a condition which many faced before FDR implemented the program in the 1930's.
The bad news is that social security is becoming an ever more important source of income for retirees. MSN/Money reported recently in "More Rely on Social Security" that in 1962 social security represented 30% of people over 65's income - in 2010 it had grown to 38%. Today more than
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Published on October 31, 2011
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Category: Financial and taxes in retirement
October 29, 2011 -- In what was a surprise to most prognosticators, Medicare Part B premiums will increase far less than predicted in 2012, and in fact will actually decline for many of those covered.
In 2012, the “standard” Medicare Part B premium will be $99.90. This is a $15.50 decrease over the standard 2011 premium of $115.40 paid by new enrollees and higher income Medicare beneficiaries and by Medicaid on behalf of low-income enrollees. The majority of
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Published on October 29, 2011
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Category: Financial and taxes in retirement
October 25, 2011 -- Let's hope you are one of those who have prepared well for the financial aspects of retirement. If so, congratulations! But before you start taking too many high fives with your friends or significant other, we suggest you look at some of the expenses that many folks are not prepared for. If you are vulnerable to one of these, take some action now to prepare against it.
If you aren't concerned about unexpected costs, consider this sobering estimate from the non-profit Employee Benefit Research Institute, which EBRI figures that it will cost $287,000 for a couple to have a 90% chance of covering their medical costs in retirement, assuming that their prescription drug costs are about average.
Long Term Care -- Unless you spend all of your assets and have no other recourse, Medicare is not going to cover your long term care expenses (although there are some expenses within that might be covered). Whether you are cared for in your home, in an assisted living facility, or in a nursing home, these expenses can be significant and far higher than your expected social security benefit. Typical assisted living fees are less than in a nursing home or in a Continuing Care Retirement Community (CCRC - which tend to be more luxurious). Figure at least $2400/month for assisted living, with extra costs if more than basic care is needed. Costs vary by state. Charges at CCRCs can easily go to $7,000 or more per month, depending on services provided. If you or your significant other have unusual medical conditions such as Alzheimers or dementia those fees can be much higher. Figuring that if you spend 10 years in an assisted living facility at $2400 a month, that is $288,000. Even if you are cared for in your home by a part-time health care aide at $15/hour, that can add up. Long term care insurance can
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Published on October 25, 2011
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Category: Financial and taxes in retirement
October 19, 2011 -- It was announced today that starting in January 2012 some 55 million Social Security beneficiaries will receive their first cost of living adjustment (COLA) in almost 3 years. The increase will be 3.6%, or about $516 year for the average recipient. Some seniors are upset that the increase doesn't match the corresponding health care cost increases they have been paying, and they might have a point, since they are heavy consumers of that service. However, the government calculates the COLA based on a range of costs, some of which do not typically
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Published on October 19, 2011
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Category: Financial and taxes in retirement
October 17, 2011 -- Bulletin: Today (October 19) it was announced that Social Security benefits will increase 3.6% starting in January, 2012. It is the first such increase in almost 3 years, amounting to about $516 per year per beneficiary. See our article on the 2012 Social Security increase for more, as well as What You Think You Know About Social Security Might Hurt You.
If you are a baby boomer or just slightly older (born before 1946), social security is about to become a big part of your financial life. Getting ready to take advantage of that benefit is therefore a critical step in your financial future. Here are some of the top questions asked by visitors to the Social Security and AARP websites, along with the answers everyone needs to know.
1. When can I start taking my benefits?
The earliest you can get your first check is the first full month after your 62nd birthday. But before you rush to sign up, just be aware that there might be significant benefits to holding off (see question 7 below).
2. When Can I apply?
You can apply 3 months before you turn 62. You can sign up for Medicare
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Published on October 17, 2011
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