Posted on October 6, 2011 by Erin
Here’s some good news for once! It was announced that after two full years of no COLA (Cost of Living Adjustment) raise, Social Security recipients may be due for one in 2012. Though it’s not etched in stone just yet, it’s expected that the announcement for as much as a 3.5% raise may be announced at the end of this month.
The raise in COLA is obviously needed and it’s been a very rough two years for people who rely on Social Security for their retirement income. The price of gas, food, electricity and clothing have all risen while income has remained exactly the same. But things must always balance, and if COLA is increased expect an increase in Medicare premiums.
Are you anxiously awaiting the announcement? Did the past two years with no increase really impact your retirement income?
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Posted on October 5, 2011 by Erin
Everyone knows that once you retire, life is a breeze. Your days and nights are filled with warm weather and lounging around your paradise. At least that’s what the movies show us. Most people are more realistic about their retirement, but what happens when you finally retire and it turns out it’s nothing like you had planned? A great article on the website Market Watch dealt with how to prepare for your REAL retirement.
We all know that the first step in planning for retirement should be your financial plan. You can’t begin to plan your work-free future if you don’t know where you stand financially. But you also need to be realistic about what is going to fill your time. What are your passions and hobbies? Can you see yourself filling the days with these or do you think you may want to take up a part time job? Many people need structure in their lives after having it for the past 40 years. By taking up a part time job or having set social time with friends and family, you can decrease the time spent wondering what to do. And it’s always good to create your “bucket list” and see how many items you can knock off. Retirement is a time for you so make sure you plan to have the most fulfilling retirement you can create for yourself!
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Posted on October 4, 2011 by Erin
Three weeks ago, a movement started on Wall Street. A loosely organized group of people from all different walks of life came to New York to stand up to what they describe as the corporate greed of financial institutions that is causing the high unemployment in the U.S. By using social networking sites such as Facebook and Twitter, the movement is spreading to other parts of the country – rallies have been planned for Memphis, Tennessee, McAllen, Texas and Hilo, Hawaii just to name a few.
The crowd consists of anti-capitalists, anarchists, students, parents, business professionals who have been laid off and have no current job options and military members who are facing a bleak future. The protests may have been loosely planned, but the message is getting out in mass. People are tired of the current economic situation and are ready to fight. Between unemployment, tax payer bailouts, astronomical student loan debts and retirement funds being eaten away, it seems that no one is immune from the problem. Do you think the demonstrations will have an impact? What do you think it will take to get the attention of the government and corporations?
How has the current economic environment impacted your retirement fund? Use our retirement calculator to see what you can do to improve your plan.
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Posted on October 3, 2011 by Erin
Get ready for one more bank fee! As you’ve probably heard by now, Bank of America will begin charging a $5 monthly fee early next year for using your debit card to make purchases. Chase Bank and Wells Fargo have been testing their own $3 fee in select states but haven’t announced if they will make it common practice.
Because many people rely solely on their debit cards to avoid the interest that comes with credit cards, these fees are not being taken lightly by the public. In a poll by the Associated Press this summer, it was found two-thirds of consumer use debit cards more often than credit cards. But 61% of those people also said that if charged a monthly fee, they would figure out a different way to pay – whether it be using cash only or writing checks again.
What do you think about the banks debit card fee? Do you think it’s fair? Do you think it’s wrong to be charged to use your own money? Sound off here!
Will all the bank fees take all of your retirement fund money? Use our Retirement Calculator to find out!
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Posted on September 30, 2011 by Erin
Everyone knows that laughter can sometimes be the best medicine. Now, some doctors in Australia are proving it. It was found in a study that laughing and increasing your good mood can actually decrease dementia agitation by 20 percent. Does twenty percent not sound all that impressive? Well consider this – it’s about the same amount as antipsychotic medications have on dementia patients.
The study took place in 36 Australian nursing homes. The happiness was brought in through games, jokes and songs for 12 weeks. Happier patients who then showed the ability to learn, even though they were all diagnosed with dementia, was the biggest outcome of the study. Patients that participated in the program showed less agitation from dementia for up to 26 weeks after the study was completed. But happiness levels dropped immediately after the study was completed and the fun activities wrapped up. Amazing what a little laughter can do!
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Posted on September 29, 2011 by Erin
Stories of people doing good things are hard to come by and that’s why we wanted to include one in our blog. It’s no secret that many seniors throughout the U.S. are having a difficult time staying in their homes as values continue to decline. One option that could help seniors is getting a reverse mortgage, and a non-profit organization in North Carolina is helping do just that.
The Foundation For Homeowners is a group that helps seniors by providing free counseling services to those in danger of losing their homes. People never want to be forced from their homes against their will and through reverse mortgages, the foundation can help seniors continue to stay in their homes. The president of the foundation, Lolita Stevenson said, “We focus only on those seniors that want the reverse mortgage but are not qualifying for various reasons.” The foundation works with the homeowner to make any repairs that may need to be done to get them up to code for a reverse mortgage loan. Sometimes they may even be able to work with homes that may be considered a short sale. Currently, The Foundation For Homeowners is counseling between 15 and 20 seniors a month and their success rate for getting seniors reverse mortgages is between 70-75%.
Thinking about getting a reverse mortgage? See if one is right for you.
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Posted on September 28, 2011 by Erin
Have you ever heard of a Senior Move Manager? Many people haven’t, but it’s a service that many people may find helpful. A simple concept but potentially a life saver, a senior move manager takes on the stressful job of relocating seniors. Unfortunately, sometimes the move of a parent or elderly loved one cannot be planned. In some cases, an event occurs and one must move their loved one immediately. It can be extremely overwhelming – imagine staring at a house where someone has lived for decades. Where do you begin? What do you keep? What do you throw away? How do you organize donations? It can be a job that is too much for someone.
The services are not cheap – Senior move managers can charge anywhere from $40-$125 per hour. But as Mary Kay Buysse, a member of the National Association of Senior Move Managers, said in an interview with AARP, the movers are needed when, “situations where a move is immediate and necessary because of the loss of a spouse, loss of health or ability to live independently.” This is a fairly new service that is beginning to catch on and may help you when you need assistance with an unexpected move. Visit the National Association of Senior Move Managers website to read more on the service and find movers near you.
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Posted on September 27, 2011 by Erin
So this is it – You have reached your 50’s and you’re currently making more money than you have before in your career. Maybe your kids have left the house and you’re starting to get closer and closer to retirement. This may be when you start spending the money you have worked so hard to earn a little more loosely than before. The temptation is definitely there. But not so fast! Did you know that households that can cut spending by $1,000 a year between the ages of 55 and 65 end up with $13,000 more at retirement? That’s a lot of money when you consider that people are living longer and having to fund a longer retirement than in the past.
Retirement planners have been challenging 50-something’s to cut back on the unnecessary spending and start saving now to help them further down the road. The basic rule is: save more, work longer and live more efficiently. Prominent retirement planning scholar Alice P. Munnell was quoted as saying, “Most who downsize adapt and flourish. Financial planners could help move boomers to action by clarifying their constraints.” In this current economic environment where people are losing value on their homes, are being laid off from their jobs and are losing money from their investments, it only makes sense to save any extra money while you still can to help you in the future.
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Posted on September 26, 2011 by Erin
Did you know that the average monthly base rate for nursing homes in the U.S. is around $3,300? In California, the price is even higher averaging around $6,500 a month. It has been estimated that half of the population in the Bay Area would not be able to afford more than three months of nursing home care. Who could at over $200 a day!
In 2010, CLASS, which stands for Community Living Assistance Services and Supports Act, was put into law as part of the new federal health care law. The objective is to help create a long term care option that workers can purchase to help them with medical care further down the road. CLASS will be available to all employed persons that are age 18 or older. After enrollment, workers will pay a monthly premium that is based on their age – older people will pay more than younger people. CLASS is completely paid for through worker funded premiums – not taxpayer money. So the success of CLASS depends on a wide enrollment in the program. Currently though, $50-$75 a day is the estimated daily payout that can go towards in home care when the time comes. Preparing for long term care should be a necessity just like having a 401(k) with your employer. Educating yourself on CLASS or purchasing your own long term care plan is something that needs to be looked at quite seriously.
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Posted on September 22, 2011 by Erin
Do you think Social Security will be around for your children or grandchildren? Senator Tom Carper of Delaware was quoted as saying, “My sons are 21 and 22; neither of them thinks Social Security is around for them. I want to make sure that it is.” But how? Obviously if we knew how to answer this question, it wouldn’t be such a debate! But the U.S. government has come up with one proposal that is gaining steam – increasing the retirement age.
The current retirement age of 66 was originally set because of the way Americans worked in the early 20th century. Many of the jobs were factory and other blue collar jobs that were rough on the body. As time continued and these jobs moved out of the country, Americans made the switch to less physically demanding and more mentally challenging jobs. Because of the switch, more Americans began living longer lives and had the ability to continue with their jobs for a more years than the physically demanding jobs. The most popular plan among lawmakers is increasing the retirement age slowly over time. By year 2050 the proposed retirement age would be 68 and would increase to 69 by year 2075. If this becomes reality, the change would affect those born after 1982. Do you think that an increase to the retirement age is the answer to helping our economy and Social Security?
You can read more about this topic, here.
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