November 23, 2020 — One of our favorite pieces of advice is that retirement offers a chance for a do-over on life. However life has turned out so far, most of us have the opportunity to change directions, if we want to take it. With that in mind, here are the eleven types of retirees we’ve seen. Which type will you be?
Note that many, if not most, people live a retirement that is a combination of many types. Have you observed other types that we should have mentioned?
Keep on Truckin’. This might be the most common type of retired person. They retire and continue to live in the same home, doing the same kind of activities they always did. They might continue to work on a less rigorous schedule. They have more time now, but their days fill up quickly with projects, TV, etc.
Posted by Admin on November 23rd, 2020
Financial and taxes in retirement
November 18, 2020 — Although there are many good reasons to choose a state for retirement, for many well-heeled retirees, finding one without an income tax is right up there. Up until 2021, only 7 states could claim that particular attraction. But coming in 2021 an 8th will join the list, Tennessee (the State previously taxed dividends and interest, but not other income). Other states have made moves to make their tax situation more favorable in 2021 as well, mainly by increasing standard deductions and personal exemptions.
Starting in 2021 the eight states that charge no income tax will be: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire almost makes the list because it only taxes interest and dividends (up until 2021 Tennessee was in the same category).
Posted by Admin on November 18th, 2020
Family and Retirement
November 14, 2020 — Not surprisingly, occupancy rates at assisted living and independent living facilities are off 2.5% since March, according to data from the National Investment Center for Seniors Housing & Care. Rates in skilled nursing facilities are declining even sharper, they have declined by 12%. One big reason for the soft markets is fear of the coronavirus. After tens of thousands of nursing home residents died in the early phases of the pandemic, nervous relatives have been considering safer alternatives for their loved ones. It is estimated that 40% of Covid-related deaths occurred in long term care facilities (WSJ). Adding to the anxiety are rules where residents are usually not permitted to have visitors, or if they do, only for very short times and under restrictive conditions.
Posted by Admin on November 14th, 2020
Best Retirement Towns and States
November 11, 2020 – We are not talking cool as in the temperature, we mean retirement towns that are fun to live in. Places where there is plenty to do, congenial neighbors, and attractions and charm that will make your children and grandchildren want to visit when this pandemic finally ends! Turns out there are a lot of fun towns for retirement; here are our picks for 10 cool towns to consider for your retirement. If you know others, we hope you will talk about them in the Comments section at the end.
Davidson, NC. Home to elite Davidson College, the population is growing rapidly and is now over 12,000 people. Local downtown businesses, characterized by restaurants and specialty shops, cater to an affluent market. Davidson College has made the town an intellectual and cultural center, drawing into its orbit professionals and some retirees.
Posted by Admin on November 10th, 2020
Home and Garden
November 10, 2020- if you like a lot of Americans you probably found some safe ways to socialize with a small group of friends or family this past summer. But with cold weather and the holidays arriving soon many folks are grappling with how to keep that going and avoid social isolation. We are curious to find out what techniques and strategies you might be using to make that happen.
Back in September we surveyed what Coronavirus Activities you are willing to engage in. Over 500 completed it; here is a Summary of the responses. One of the questions (#9) directly asked about cold weather, specifically if you would be willing to visit or entertain when it comes. Just over half said they would visit with other folks in some way or another, but with some conditions. The issue becomes even more important as Thanksgiving and the holidays loom in the immediate future.
There were over 80 written Comments to the question. The vast majority of those seemed to indicate they probably would entertain/be entertained, but only if masks and social distancing were observed, and if they trusted the other people.
Posted by Admin on November 9th, 2020
Financial and taxes in retirement
November 4, 2020 — Data from the Centers for Medicare & Medicaid Services predict that Social Security benefits will provide an ever smaller portion of replacement income for retirees in the years to come. This prediction takes into account the delay in the Full Retirement Age from 65 to 67, along with increases in Part B Medicare premiums and federal taxation. The Centers sees the replacement level of income after those deductions falling from 41% in 1995 to to 29% by 2035. All of which puts more pressure on retirees for other sources of retirement income.
Pandemic might accelerate this. Employees and their employers pay taxes on their wages to fund the Social Security Trust Fund. As people lose their jobs and unemployment rises in the pandemic, and if it that were to persist for a long time, the Trust Fund would be negatively impacted. Social Security currently predicts that it only be able to pay 75% of benefits in 2035, but if a bad economy persists that percentage might even be smaller.
404(k) Balances growing. For those fortunate to have one, 401(k) balances increased through 2019. The median 401(k)/IRA balance for working households nearing retirement rose from $135,000 in 2016 to $144,000 in 2019. Since the stock market has also generally been up in 2020, it stands to reason that those balances are a little higher as 2020 ends. This information comes from the Survey of Consumer Finances by the Federal Reserve and summarized by the Center for Retirement Research at Boston College (CRR).
Posted by Admin on November 2nd, 2020