Archive for September, 2005

Easy living just took on a new meaning…

Real estate companies are apparently begining to cater to the soon-to-be retired set, according to this article
by RISmedia. The baby boomer generation, with their kids leaving the
house, are now looking for more manageable homes to live in. While this
may always have been the case, the difference here is that real estate
developers are reacting.

The article quotes new figures for retirement and active living
communities in the Washington area, among others. Many of these are
being called “age-restricted” communities, meaning nobody under 55
allowed. This should serve to keep residents more active, giving them
people their own age to be around, as well as keeping the all-night
parties on Fridays to a minimum (though perhaps not).

Retirees with large amounts of capital in their family-sized homes
should perhaps consider this new trend as an option. As the article
quotes, many retirees “want to stay active without spending too much
time on their house.” And after all, after working so hard for all
these years, who could blame them?

Another Pension Plan Bites the Dust

According to the New York Times ,
there is a man named Robert Miller who appears to be in the business of
buying up companies and jetisonning their pension funds, leaving the
would-be pensioners to rely on government guarantees to supply their
retirement pensions. This may sound like the actions of a Dickens’
villain, but it appears to be fast becoming a standard practice. The
companies mentioned include Delphi, a spun-off subsidiary of General
Motors, which is presently facing severe economic troubles, and
potential chapter 11 Bankruptcy. The reasonable concern here is that
all the companies are doing is shifting the balance of the pension
requirements onto the taxpayers, making the companies suddenly more
valuable, but placing a further burden both on the government who has
to pay out these defaulted pensions, and the pensioners themselves, who
may face a loss of benefits as a result.

Something to watch out for if you plan on living on a pension….



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