Posted on September 28, 2006 by Jason
Business Week Online, September 27th, 2006
Nowadays the old American dream of owning your own home outright can seem like just that: a dream. For reasons good and bad, Americans are increasingly carrying mortgage debt later in life. Retirees or soon-to-be retirees who haven’t factored these mortgage payments into their retirement plans could need to come up with some extra income.
Meanwhile, the cooling housing market may be leaving many Americans with less home equity. Prices of existing houses fell in August for the first time in 11 years, the National Association of Realtors said on Sept. 25. Homebuilders like Beazer Homes, KB Home, and Lennar are also feeling the hurt.
About a quarter of US census respondents aged 70 and older reported having a mortgage in 2000, up from 19.9% in 1980. The number of census respondents in their 60s with a mortgage rose to 44.6% from 34% two decades earlier. This mounting debt load “may suggest that the traditional rules of thumb for determining appropriate levels of retirement income are outdated,” according to a recent report by the Financial Planning Assn.
Read more of this article. Learn more about Reverse Mortgages. Learn more about Mortgage Refinancing. Learn more about Working in Retirement.
Posted on September 27, 2006 by Jason
The Hill, September 26th, 2006
Members and aides will glimpse a familiar sight
this morning on the Capitol’s West Lawn: angry physicians, wearing lab
coats and toting picket signs.
With just days left before lawmakers leave town to campaign,
lobbying groups representing doctors are continuing their frantic push
to get the key players in Congress to set aside their differences and
quickly move legislation to prevent a 5.1 percent cut in Medicare fees
for doctors that will kick in on Jan. 1.
The American Academy of Family Physicians (AAFP) organized today’s
event, which is billed as a rally. The group says that 2,000 family
doctors representing every state will be there, joined by Sen. Jon Kyl
(R-Ariz.) and Rep. Pete Stark (D-Calif.).
“I think it’ll show them that we’re kind of mad,” AAFP President Larry Fields said in an interview last week.
Lawmakers aren’t likely to need the reminder.
Read more of this article.
Posted on September 27, 2006 by Jason
Yahoo News, September 27th, 2006
Corporations and caregivers are
taking unprecedented action to prepare for the wave of 90 million Americans
who will be 65 and older over the next 40 years, essentially doubling today’s
senior population.
According to the U.S. Census figures, 72 million (1 out of 5) Americans
will be 65 or older by 2030. The health care issues that come with an aging
population are increasingly being shouldered by family and friends, who
provide an estimated 80% of all eldercare.
“One in four families across the U.S. is now dealing with caregiving
issues. As people live longer, this will continue to be a growing issue,”
according to Robert Brooks, CEO ElderCarelink, a leading internet service
which connects consumers to providers of eldercare products and services.
Interestingly, only 8% of elderly Americans reside in nursing homes. The
vast majority are cared for at home by their family or close friends who take
on the role of informal caregivers without any formal medical training or
compensation.
Read more of this article.
Posted on September 26, 2006 by Jason
Miami Herald, September 25th, 2006
A panel of experts agreed Saturday that fraud in billing Medicare for HIV/AIDS treatments is a massive problem.
”We’re very concerned,” said Sandra Colón, a Medicare
investigator. ”This healthcare fraud is endangering the health of our
beneficiaries.” She said the federal agency was ”aggressively”
taking measures to stop the fraud.
Representatives of the Federal Bureau of Investigation, the Florida
Department of Health, Medicare and First Coast Service Options spoke
during a roundtable at the 2006 U.S. Conference on AIDS, held at the
Diplomat Hotel in Hollywood.
The participants described how recruiters seek out persons with
HIV/AIDS who have Medicare cards for disability at homeless shelters,
assisted living facilities.
An FBI agent who did not want to be identified said recruiters for
fraud clinics even go to meetings of Narcotics Anonymous, Alcoholics
Anonymous and mental health facilities. She called this an “egregious
fraud.”
Read more of this article.
Posted on September 26, 2006 by Jason
It’s difficult to save for two major expenses like retirement and a
child’s education – how can you do it without being completely strained?
CNN Money, September 25th, 2006
My wife and I recently bought a home and are now looking into
getting a jump on saving for retirement and for our son’s future
college tuition. But we’re unsure what to do first.
We
have a little over $100,000 in our 401(k)s, but little savings beyond
that. I think we should build an emergency cash fund first to tide us
over in case we’re hit with unexpected expenses. But my wife thinks we
need to open a 529 account for college tuition?
What do you think? Is it possible to do both and not be too strained?
– Wayne Peterson, Randallstown, Maryland
ANSWER:
Is it possible to save for retirement and for a child’s education at
the same time? Sure, but it requires a pretty decent income and lots of
disciplined saving. And even then it’s no picnic.
Read more of this article.
Posted on September 26, 2006 by Jason
The New York Times, September 24th, 2006
THIS hearing aid looks more like an earring. Its tiny triangular body comes in
exuberant colors like sunset orange, racing green or cabernet red; a slender
wisp of wire uncoils gracefully from the body to an earpod no bigger than a
teardrop.
But it is indeed a hearing appliance, made by the Danish company Oticon. It is called Delta, after its triangular housing that
contains the microphones and signal-processing electronics. Introduced in May,
the device is designed for people typically in their 40’s, 50’s or older who are
starting to lose the ability to hear high-pitched sounds but hate doing anything
about it.
“This new design is appealing to people who traditionally are reluctant to
seek help” for hearing loss, said Ed Bravo, an audiologist at Audio Help
Associates in New York. An appliance that looks this hip, though, may overcome
that barrier; Dr. Bravo has fitted many clients with it since May.
The hearing aid costs about $2,000 to $3,000, depending on the model;
typically, people need one for each ear, said Gordon Wilson, vice president for
marketing at the company’s American headquarters in Somerset, N.J.
Read more of this article.
Posted on September 20, 2006 by Jason
Mortgage 101.com, September 19th, 2006
DEAR BOB: I am a 74-year-old widow. About
six years ago, I added my daughter’s name to my home’s title in joint
tenancy with right of survivorship so she wouldn’t have to worry about
probate costs when I pass on. I’m doing pretty well, health wise, but
am running low on income since my airline pension income was cut about
two years ago. However, I am told I can’t qualify for a senior-citizen
reverse mortgage because my daughter is on the title. Is this true? I
asked her to quitclaim her interest back to me but she is reluctant
–Martha Y.
DEAR MARTHA: Because your daughter is obviously not yet 62, her
being on the title to your home disqualifies you for a reverse
mortgage. All co-owners must be at least 62 because reverse-mortgage
eligibility is based on the age of the youngest owner.
Your situation is another example why I do not recommend adding heirs to real estate titles to avoid probate.
However, your problem has an easy solution, which is good for you
and your daughter. You can create a revocable living trust with your
daughter named as the successor trustee and the heir of your
living-trust assets after you pass on.
Before you do this, be sure she agrees and signs a quitclaim deed to
you. Then obtain your reverse mortgage. After it is recorded, you can
then transfer title to your home into your new living trust, thus
avoiding probate after you pass on.
The reason you should wait until after the reverse mortgage is
recorded to transfer title into your new living trust is
reverse-mortgage lenders insist the title not be in a living trust when
the reverse mortgage is originated.
Read more of this article. Learn more about Reverse Mortgages.
Posted on September 20, 2006 by Jason
PR Web, September 19th, 2006
According to Daniel Katz, Vice President of Operations for Settlements for Life,
senior citizens who are contemplating cashing in their life insurance
policies could receive 5 times or more than the cash value of their
policy by not cashing that policy in at its current cash surrender
value. Instead, by using a reputable life settlement brokerage firm, a
buyer can be found to purchase that policy and take over the payments
on it. While the buyer ultimately reaps the larger financial benefit at
the time of that person’s passing, the individual receives a lump sum
payment for that policy that is typically substantially higher than the
policy’s current cash surrender value.”
Here’s how it works: A life settlement is the sale of a life insurance
policy, whereby, the owner of the policy receives more than the cash
surrender value of the policy. After an application is submitted by an
individual, medical and insurance carrier information is gathered to
help evaluate whether an existing policy might be attractive to a buyer
who invests in this kind of product. To qualify, individuals must be
age 65 or older and the policy must have a death benefit of at least
$250,000. Once it is determined that the policy is worthy of purchase,
a life settlement firm sends the policy to companies who are buyers in
the marketplace. After the sale is made, the buyer will continue to
make the premium payments for as long as that individual lives.
Read more of this article.
Posted on September 20, 2006 by Jason
The Motley Fool, September 19th, 2006
Target-date asset-allocation funds are designed to be held until a
specific year in the future — the year you intend to retire.
Initially, the funds hold an aggressive mix of stocks and bonds, but
they gradually become more conservative as the target date approaches.
The funds’ holdings are rebalanced automatically, and ideally,
investors get a portfolio they won’t need to think about until
retirement.
Target funds are essentially funds of funds, investing in a
portfolio of other mutual funds. They start out with more stocks than
bonds in their portfolios, and over time reverse this, ultimately
focusing on creating cash dividends instead of growing the principal.
Planning to retire in 2030? Buy a fund with a 2030 target date, and as
that time frame approaches, your fund will unload stocks and add more
income-generating bonds.
Target funds have been in the spotlight recently because of the pension reform bill passed in August of 2006. The new rules permit companies to
automatically defer employee earnings into 401(k) accounts unless the
worker opts out. Target funds might be the fund choice for many
companies, since they are designed as a one-decision fund.
Read more of this article.
Posted on September 19, 2006 by Jason
Rutland Herald, September 19th, 2006
The booming retirement market is about to have a new source of
information available on television. John Erickson, an innovator in
retirement communities, is preparing to launch “Retirement Living,” a
new television network designed for people 62 and older.
Baltimore’s Erickson, founder and CEO of Erickson Retirement Communities, has dubbed the network with “TV Finally Grows Up.”
Production
has begun, and plans call for going “on air” sometime during September,
according to Mel Tansill, senior director of public affairs for
Erickson Retirement Communities. Details on distribution are still
being finalized, he says. Programming will air initially on Comcast
stations in the New England and mid-Atlantic markets, with a nationwide
rollout to follow.
Some of the shows planned for the network include:
Amazing
Seniors: A one-hour program that tells stories about ordinary
individuals and the extraordinary lives they lead. Stories will focus
on the creative lives that older Americans lead as artists, athletes,
leaders and more.
Read more of this article.
